Total
0
Shares
Funtastic (ASX:FUN) - CEO and Managing Director, Louis Mittoni - The Market Herald
CEO and Managing Director, Louis Mittoni
Source: Smart Company
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Funtastic (FUN) has sold its confectionery business to Sweet Season for $1.05 million
  • The sale includes all current inventory and assets from its confectionery business, including brand names and lollies
  • The sale follows Funtastic’s acquisition of the Hobby Warehouse Group, which includes Toys"R"Us, Babies"R"Us and Hobby Warehouse
  • Funtastic’s confectionary generated $4.2 million in revenue during FY20
  • The sale is expected to be finalised prior to January 31, 2021
  • Despite the news, Funtastic fizzled 7.69 per cent, trading at 12 cents

Funtastic (FUN) has sold its confectionery business to Sweet Season for a delectable $1.05 million.

The sale includes all current inventory and others assets from the confectionery business, sweetening the deal with brand names and lollies such as Candy Brain Bitz, Fizzers, Zaini Chocolate Eggs and X-treme sour straps.

The sale follows Funtastic’s acquisition of the Hobby Warehouse Group, which includes e-commerce businesses Toys"R"Us, Babies"R"Us and Hobby Warehouse.

Funtastic’s confectionary generated $4.2 million in revenue during FY20, or 17.1 per cent of the wider business’ total revenue.

This sale is in line with the strategic intent to transform the business by overhauling existing portfolios, introducing new products, expanding its eCommerce focus and exploring inorganic growth opportunities in emerging growth sectors.

CEO and Managing Director Louis Mittoni did not sugarcoat what the sale would mean for the business.

“The sale of the confectionery business is part of the ongoing strategic review of all product ranges, customer segments and operations,” Louis said.

"It accelerates materialisation of value for part of the business and will allow investment to build scale and to right-size the business, aligned with the planned growth and focus of the Company to deliver our mission of encouraging children to engage with as many forms of play as possible and assist people to explore, create and live life more fully."

The sale is expected to be finalised prior to 31 January 2021.

Despite the news, Funtastic has fizzled 7.69 per cent, trading at 12 cents per share at 2:45 pm AEDT.

FUN by the numbers
More From The Market Herald
Murray River Organics Group (ASX:MRG) - CEO, Birol Akdogan - The Market Herald

" Murray River Organics (ASX:MRG) sells citrus property for $5M

Murray River Organics Group (MRG) has sold its citrus property, Gol Gol, for $5 million.
Synlait Milk (ASX:SM1) - CEO, Leon Clement - The Market Herald

" Synlait Milk (ASX:SM1) slashes FY21 guidance amid ongoing COVID woes

Shares in Synlait Milk (SM1) have tanked today after the company was forced to scrap its 2021 earnings guidance amid ongoing COVID-19 struggles.
Verbal flub by ex-Myer CEO comes to a five year close after class action

" Myer (ASX:MYR) experiences online sales boost as pandemic stunts foot traffic

Despite pandemic hindrances to its brick and mortar stores, strong online sales growth and lower costs fuelled a net profit in Myer’s (MYR)
Nutritional Growth Solutions (ASX:NGS) partners with internet sensation Gavin Thomas

" Nutritional Growth Solutions (ASX:NGS) partners with internet sensation Gavin Thomas

Nutritional Growth Solutions (NGS) has partnered with celebrity and social media influencer Gavin Thomas to promote Healthy Height in China.