By - Jasmine Anand
- My Food Bag Group reveals the resignation of its CEO
- Its current year's trading performance has been affected by the economic environment and inflationary pressures
- It expects FY23 earnings to be lower than those of FY22
My Food Bag Group Limited (NZX:MFB), which is engaged in the online food delivery business, has around NZ$157.58 million as its market cap.
Source: © Klochanko | Megapixl.com
MFB’s CEO steps down
Today, the food company announced the departure of Kevin Bowler, its Chief Executive Officer. He joined the organisation in 2018 and led the Company through the COVID-19 pandemic, facing challenges like supply constraints, high inflation, health and safety risks, etc.
Mr Bowler’s last working day in the Company is 14 October. Meanwhile, MFB’s Chief Financial Officer, Mark Winter, will act as an interim CEO until a suitable replacement has been found.
Current trading update
MFB has witnessed a slower start in FY23 as compared to its expectations. The Company’s suppliers were affected due to the Omicron outbreak and had to deal with issues like incomplete and late deliveries. As a result, MFB has reduced its marketing activity and simplified its product offerings, thus experiencing a quiet start to FY23.
Further, its trading is also being impacted by the prevailing economic environment and rising cost pressures.
The Company is making attempts to boost its trading performance, like increasing customer order frequency, among others. MFB is also continuously looking at innovating its existing products and has introduced several customisation initiatives, etc.
At the end of July 2022, while the Company’s revenue was up 2.5%, its EBITDA declined by about 8.5% as compared to pcp, and it expects its full-year earnings to be lower than that of FY22.
Last month, My Food Bag Group held its Annual Shareholders’ Meeting. Resolutions were passed for the election of Cecilia Robinson and for the re-election of Tony Carter as directors of MFB. Another resolution for empowering its directors to fix the Company auditor's remuneration for the forthcoming year was also passed by its shareholders.
My Food Bag Group Limited claims to explore growth opportunities and is focused on managing the impacts of ongoing economic headwinds like cost pressures from rising inflation and weather events.
On 16 September, at the time of writing this article, My Food Bag Group was trading flat at NZ$0.640.