Longtable serves up healthy earnings growth

Longtable serves up healthy earnings growth

Food and dairy producer Longtable (ASX: LON) has defied the COVID-19 economic downturn to post EBITDA growth of $5.3 million in FY20.

The company, which operates celebrity chef Maggie Beer's beloved food brand and dairy producers Paris Creek Farms and Saint David Dairy, says success in FY20 was driven by strong sales in May and June.

Against challenging market conditions Longtable saw net sales grow by approximately 3.5 per cent year on year in FY20 and enters the new financial year with a strong balance sheet and cash reserves of $10.2 million.

Maggie Beer Products played to the e-commerce boom during COVID-19 lockdowns, launching a digital marketing plan that drove brand growth. Success can also be attributed to the new "Cooking with Maggie" series that now has more than 4.4million views.

In FY21 the company plans on launching a new Maggie Beer Products website to help continue grow online sales.

Paris Creek Farms continued its turnaround with full year net sales increasing by approximately 7 per cent compared to FY19.

The dairy producer has now received Chinese Organic Certification and is exploring export opportunities in that major Asian market with potential partners.

Saint David Dairy similarly contributed positively to the overall group cashflow and trading EBITDA, achieving double digit full year net sales growth after expanding its business further into the retail and home delivery sectors.

"The Group is passionate about making Australian premium food and beverage products using Australian produce that supports local dairy farmers, fruit and vegetable growers and their communities," says Longtable CEO Chantale Millard.

"It is pleasing to see the positive results from the work that has been done in each of the businesses over the past 12 months that will allow us to continue to deliver on our strategy and purpose.

"The businesses all resonate strongly with Australian consumers who are increasingly looking for high-quality food and beverage products, made in Australia using locally sources ingredients to enjoy every day or to entertain with at home, and we are excited by the future opportunities that his presents for the group."

Shares in Longtable are up 30 per cent to $0.20 per share at 12:19pm AEST.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Hospitality mogul Glenn Piper to transform Hook Island into "world class hospitality experience"

Hospitality mogul Glenn Piper to transform Hook Island into "world class hospitality experience"

Sydney hotelier Glenn Piper has snatched up his third hospital...

Super fund HESTA "unconvinced", to vote against AGL demerger

Super fund HESTA "unconvinced", to vote against AGL demerger

Superannuation fund HESTA is backing the position of Australian tec...

Airtasker completes Oneflare acquisition after ACCC withdraws concerns

Airtasker completes Oneflare acquisition after ACCC withdraws concerns

Leading online services marketplace Airtasker (ASX: ART) has comple...

Superloop set to buy tech services firm Acurus for $15m

Superloop set to buy tech services firm Acurus for $15m

After completing $140 million worth of divestments from Singapore a...