Forbidden Foods strategic acquisition

Forbidden Foods (ASX:FFF) has announced a significant acquisition of Oat Milk Goodness (OMG), a leading non-dairy brand, as part of its growth strategy. This move is expected to enhance their presence in the 'Better For You' FMCG sector, potentially increasing revenues and market reach.

Overview of Forbidden Foods' strategic moves

Forbidden Foods has strategically acquired Oat Milk Goodness (OMG), enhancing its position in the non-dairy segment. This acquisition is part of its plan to pursue value-accretive mergers and acquisitions. The company reported increased cash receipts and ecommerce sales, signaling strong financial performance. Operational synergies and cost efficiencies are anticipated from the acquisition, reinforcing its distribution network. Corporate changes were made with new board appointments, and the company is focused on expanding its domestic sales footprint while exploring international opportunities, particularly in India. Despite operating cash outflows, Forbidden Foods has improved its financial flexibility with a recent placement, aiming to support growth and enhance shareholder value.

Executive commentary on acquisition

The transformative impact of the OMG acquisition aligns with our growth objectives, offering revenue growth, cost savings, and expanded opportunities across product lines.