Ann: FY22 Trading Update, page-3

My take is that it looks/sounds worse than it really is. Strong price support has come in at these levels so I'm not the only one thinking that. All the great things about the MBH story are still intact for the gifts & hampers business – fantastic margins, capital-light, good cashflow, double digit growth, no borrowings etc. They have also pretty much locked in the first dividend to shareholders and have the ongoing cashflow to keep it up. Net sales forecast has been maintained. The damage has been mainly in relation to costs (which is affecting everyone) which has been addressed with price increases. They do appear to have lost patience with the dairy side of the business. In the case of PC, I can't say I agree completely but dairy was the source of the biggest hit to EBITDA. On the plus side, if those businesses are divested, there will be some capital returned to the company and PC & SD are the lower margin/higher cost segment of the MBH stable. Plus they tie up management resources.