My Food Bag beats forecasts in first result as listed company

My Food Bag beat its prospectus forecasts in reporting its first result as a listed company, posting a net profit of $2.4 million compared to $8.1m a year earlier.

Revenue for the year to March 31 was up 24 per cent to $190.7m and up $1.2m of the $189.5m forecast in its IPO documents issued in March.

Underlying earnings (ebitda) of $29m were $500,000 ahead of forecast.

The Auckland-based meal kit company said its $2.4m net profit included one-off transaction costs relating to the IPO of $14.1m. The company said it delivered 4.8 million meals delivered during FY21 – a 22.6 per cent increase on its FY20 volumes.

My Food Bag said it had 66,492 active customers in the last quarter of FY21.

Its first dividend as a listed company is expected to be an interim dividend paid in December 2021.

My Food Bag attributed its growth in the year to its new products and the coronavirus pandemic accelerating the uptake of online shopping and home delivery of food.

Chairman Tony Carter said My Food Bag’s IPO and sharemarket debut on the NZX and ASX was a significant milestone for the company. He said its investment in innovation and technology in the lead up to the listings had helped underpin its strong growth.

In the NZX announcement, Carter said the board was “conscious of how the share price had performed since the IPO” and wanted to reassure investors that My Food Bag “remained a high-quality business positioned for growth”.

“At My Food Bag, we’re all working hard to ensure that the business continues to grow, and we expect that growth to be reflected in the share price over time,” Carter said in a statement.

My Food Bag listed on the New Zealand Stock Exchange on March 5 with many first time investors left disappointed as the stock fell after listing amid high expectations.

The shares listed at $1.85 a share, near the top of its indicated range, valuing the company at $449m.

However, the share price has underperformed since, recently hitting a low of $1.44.

During the year, My Food Bag said it had experienced higher levels of customer retention.

Carter said the company had ended the year in a strong financial position with a balance sheet well positioned to meet growth opportunities outlined in its product disclosure statement.

“It has been a busy start to the new year. Trading and operations during the first seven weeks of FY22 have been in line with expectations. We’ve launched Bargain Box choice and an upgraded iOS app, as well as delivered strong margins through ongoing improvements to our supply chain,” he said.

My Food Bag said it reaffirmed its 2022 forecast provided in its prospective financial forecasts, being revenue of $186.4m, ebitda of $34.2m and net profit of $20.1m for the 2022 financial year.

MORE TO COME.

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