Shima Wasabi has been a disaster for TFL and it is well rid of it.
Back in 2016, TFL paid around $3 million for an operation with revenue of about $150,000 and not even owning the land on which the product was produced - 20 times revenue and a ridiculous price to pay. $2.1 million of this price (the goodwill attached to the acquisition) was written off in 2017. Now it is selling it for $700,00 (less employee entitlements) and at 1.8 times revenue, which TFL describes as "a reasonable outcome in the current environment."
Quite a bit of money has been invested in expanding wasabi production in recent years (and presumably capitalised), which suggests there could still be a further and not insignificant loss posted with the sale. The announcement says nothing about the bottom line (profit/loss) - TFL should disclose this to the market.
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