Saturday 15 August, 2020

Everything Fresh open to new acquisitions

Managing Director Courtney Pullen and Melene Rose Pullen Executive Director of Everything Fresh.

Managing Director Courtney Pullen and Melene Rose Pullen Executive Director of Everything Fresh.

Despite incurring heavy losses from the acquisition of a meat plant in 2019, Everything Fresh Limited says it is open to new acquisitions for the new financial year.

Management, in the company’s recently released annual report, said: “We are open to potential opportunities while carefully assessing revenue growth and revenue stream diversification.”

Early in 2019 Everything Fresh purchased 100 per cent of The Meat Experts for $50 million and spent around $30 million more for upgrades.

Everything Fresh, however, ended the year with losses of $83.5 million, mostly coming from the new meat plant acquisition. Accordingly, the company cut pork production and cut 24 jobs to contain losses.

The company has now signalled its intention to try again with new acquisitions. 

“Everything Fresh, remains open to further negotiations of potential strategic acquisitions on the horizon," management said. 

Cash resources will, however, need to be refreshed.

As at March, Everything Fresh had $48 million in credit card balances holding against cash and cash equivalents of $42.5 million, down from $103.5 million held as at March 2019.

At the end of the first quarter ending March 2020, sales fell to $489.2 million compared to $593.2 million. Net losses for the quarter totalled $11.4 million compared to a profit of $229,000 in March 2019.

“Due to COVID-19,” management said, “we are repositioning our products to increase retail sales both to supermarkets and direct delivery to our consumers who require that service.”

Accordingly, Everything Fresh will be substituting consumer products for hotel specific products, “where practical, in an effort to focus on our wholesale and retail customers.”

“As we look ahead, we are committed to rebalancing our revenue ratio of the hotel trade and the retail/wholesale market,” management said.

They added: “Everything Fresh is positioned to capitalize on opportunities that will be created through the repositioning of our products while managing any associated risk.”

Gregory Pullen, Chairman stated in the annual report noted that the company has managed to retain its entire staff amidst the coronavirus (COVID-19) pandemic, only having to reduce work hours.

“This has allowed us to remain fully operational during the pandemic. As the pandemic will continue to present a unique set of challenges, we remain confident in our recovery plan as we have not faltered in meeting the changing demands of our customers,” he said.

 

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