- 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.