Halo Food has divested its weight-loss food business The Healthy Mummy to local Australian hair loss and healthcare company Mosh.
Mosh will acquire The Healthy Mummy from Halo for A$588,540 ($383,500), having recently launched its own female-focussed brand Moshy.
The Healthy Mummy subsidiary, which produces nutrition weight-loss products such as smoothies, meals and snacks, was initially put up for review in March before the current extension.
All of the employees at the weight-loss brand will continue to work under it, while Halo and Mosh entered into an “arms-length and exclusive manufacturing agreement” for the future production of The Healthy Mummy powders, including smoothies and weight-loss shakes for an initial term of 18 months.
Halo originally bought The Healthy Mummy for around A$20m.
Halo previously impaired the acquisition of The Healthy Mummy by A$11.3m at the end of the year until 31 May 2023. This impairment was “driven by softer sales in the e-commerce and digital business and contributed to the strategic review undertaken by Halo”, according to a filing by the owner.
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The divestiture comes only a few months after Australia-listed Halo extended a strategic review to encompass all of the New Zealand-headquartered company’s business units and factories.
For the fiscal year to 31 March, Halo Food generated preliminary revenue of A$83.9m, up 40% on the previous year. Contract manufacturing in Australia accounted for A$53.7m, the New Zealand dairy business A$12.7m and branded sales amounted to A$3.6m.
In the previous financial year, sales were A$59.9m, an increase of 18%. EBITDA turned to a A$2.3m profit from a A$2.3m loss in the prior year.