My Food Bag (NZX:MFB) provides trading update amid COVID-19 lockdowns

Highlights

  • My Food Bag continues to run its sites under different Alert Levels.
  • The Group witnessed elevated demand in 2 weeks NZ was under Alert Level 4.

My Food Bag Group Limited (NZX:MFB), NZ’s longest-standing meal-kit provider, provided a trading update.  MFB revealed that its assembly sites in Auckland are operating under Level 3 protocols while its Christchurch site is operating under Level 2 restrictions.

The Group reported that the preliminary net sales value (NSV) for 6 months ended 30 September 2021 stood at $98.4 million while deliveries stood at nearly 808K, both in line with expectations. NSV is the gross revenue net of any customer credits and discounts.

Food

Image source: © 2021 Kalkine Media

MFB recorded a total of 76,875 customers at the end of Q2, up 3.3% on Q2 FY21. MFB’s high-value customer cohort, customers who have bought a minimum of 20 deliveries in the past 12 months, rose at a similar rate within the Group’s total active customers.

The Group has witnessed increased demand correlated to higher Alert Levels. Though the full impact of COVID-19 lockdown in mid-August is yet to be computed, MFB experienced a rise in demand in 2 weeks NZ was under Alert Level 4.

MFB also witnessed inflationary pressure recently, majorly in ingredients and labour costs. The Group has plans to mitigate the impact of increased costs by increasing the price of selected bags in early October.

At the time of writing, MFB shares were trading at NZ$1.23, up 2.5%.

Bottom Line

MFB Board is well-positioned to reaffirm its revenue and earnings guidance for FY22. The Group plans to release its 2022 half-year results to 30 September 2021 on 19 November 2021.

Comment


Disclaimer

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK