My Food Bag Group Limited Analysis

Overview

My Food Bag is an online food delivery business and New Zealand’s longest standing meal kit provider. Each week My Food Bag delivers thousands of bags full of nutritious, locally sourced ingredients along with easy-to-follow recipes direct to families across New Zealand. My Food Bag offers a broad range of meal kit bags in New Zealand under the My Food Bag, Bargain Box and Fresh Start brands and also has a range of ready-made meals with the MADE brand. Visit www.myfoodbag.co.nz.

Performance

The following information was extracted from My Food Bag Limited's half year results, released on 21 November 2024:

My Food Bag reports increased profit and pays interim dividend

• Revenue of $82.2 million, compared to $83.8 million in FY24 H1
• EBITDA of $7.8 million, versus $7.4 million in FY24 H1
• Gross margin of 49.8%, versus 47.9% during FY24 H1
• Average delivery order value of $128 across H1, slightly down from $128.50 in FY24 H1
• 60,100 active customers at the end of FY25 H1, slightly down from 61,600 at the end of FY24 H1
• Net profit after tax (NPAT) of $3.0 million, versus $2.5 million in FY24 H1
• Fully imputed interim dividend of 0.65 cent per share declared, payable in December

My Food Bag Group Limited today reported its financial performance for the six months to 30 September 2024 (FY25 H1).

Tony Carter, Chairman of My Food Bag, says: "Last year marked a successful transition for My Food Bag and during FY25 H1, we’ve been pleased to build on this momentum.

“We have further stabilised active customer numbers and the business in general. We have also continued to benefit from productivity improvements made in FY24 including the consolidation of Auckland sites and the investment in pick technology.

“Debt reduction has also continued to be a focus for us, and we have reduced net debt from $11.8m at the end of FY24 to $9.7m at the end of September 2024. Based on FY25 H1 performance, the Board is pleased to declare an interim dividend and confirms a fully imputed dividend of 0.65 cent per share,” says Carter.

The My Food Bag Shop was recently launched and is designed to support the growth of the business’ core offering with a specific focus on capturing market share by targeting people without meal kit subscriptions. In addition, the My Food Bag Shop opens up a new customer segment for the business.