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 full year results, released on 23 May 2024:

• Revenue of $162.2 million, down 7.7% compared to FY23
• EBITDA of $16.0 million, compared to $18.2 million in FY23 (1)
• NPAT of $6.0 million, compared to $7.9 million in FY23
• H2 NPAT of $3.5 million, compared to $2.0 million in FY23 H2 NPAT – up 75% year on year
• Bargain Box deliveries up 19.5% and an upweighted focus on each of the three core brands
• Successful implementation of pick technology, averaging 99% accuracy in H2 FY24
• Net debt reduced by $3.5m to $11.8m
• Fully imputed final dividend of 0.5 cent per share declared, payable on 20 June

Meal kit and food solutions business, My Food Bag Group Limited, today reported EBITDA of $16.0 million for the twelve months to 31 March 2024 (FY24).(2)

While NPAT was $6.0 million in FY24, compared to $7.9 million in FY23, the business achieved a H2 NPAT of $3.5 million compared to FY23 H2 NPAT of $2.0 million – up 75% year-on-year. This demonstrates the success of the business’ cost-out initiatives and realignment of its strategic pillars, as well as My Food Bag's resilience in a difficult macro-economic environment.

The average order value was $129.54 across the year, marginally down from $130.11 in FY23. This was largely driven by an upswing in Bargain Box customers, changing the business’ brand mix.

Tony Carter, Chairman of My Food Bag, says this financial year marks a successful transition for My Food Bag’s business.

“The steps we took in early 2023 to realign aspects of our business to reflect trading conditions, capitalise on market opportunities and add value for our customers is working.

“Against the backdrop of a difficult macro-economic environment, we have transformed our operations, and the second half of the year has demonstrated that having stabilised and reset the business we can continue to grow profit,” says Carter.

Active customer numbers have remained relatively stable at 56,800 at the end of FY24, versus 57,500 at the end of FY23.(3)

Gross margin also remained stable at 48.5% across FY24, compared to 48.4% during FY23. While contribution margin was down slightly at 22.6% in FY24, versus 23.5% in FY23.

“We remain a profitable business with a strong brand and customer offer, and the ability to take a greater share of New Zealand’s online food market,” says Carter.

Based on FY24 performance and performance during the start of FY25, the Board is pleased to resume paying dividends and confirms a fully imputed dividend of 0.5 cent per share for FY24.