My Food Bag (NZX:MFB) shares drop 16% on 1HFY23 results

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 My Food Bag (NZX:MFB) shares drop 16% on 1HFY23 results
Image source: © Perstock | Megapixl.com

Highlights

  • My Food Bag reported lower results for 1HFY23 compared to IHFY22.
  • It reported a drop in revenue by NZ$4 million over the previous corresponding period (PCP).
  • According to MFB, net profit after tax was also lower by almost NZ$3.5 million over the PCP.

My Food Bag Group Limited (NZX: MFB) reported its half-year results (1HFY23) today (18 November 2022).

The Company reported lower half-year earnings for 1HFY23 than 1HFY22, with a net profit after tax (NPAT) of NZ$5.9 million against NZ$9.4 million in 1HFY22.

The company’s EBITDA was NZ$11.5 million versus NZ$15.8 million over the previous corresponding period (PCP). The company’s revenue, as per the update, was also down by NZ$4 million to NZ$94.4 million.

Tony Carter, Chairman of MFB, said that the lower results were due to the challenging and volatile economic environment. He added that inflationary pressures also added to the woes.

MFB said that in the first half of FY23, it made 732,000 deliveries across its products against a total of 808,000 deliveries made in 1HFY22.

My Food Bag’s 1HFY23 performance at a glance

  • Net profit after tax (NPAT): NZ$5.9 million
  • EBITDA: NZ$11.5 million
  • Revenue: NZ$94.4 million
  • Gross margin: 49.3%
  • Contribution margin: 25.3%
  • Active customers: 69,091
  • Investment in assembly pick technology
  • Interim dividend: 3 cents per share

Outlook

The Company expects full-year earnings to be lower than last year’s as reflected in the first half of FY23.

My Food Bag said in the announcement said that it was trying to grow its active customer numbers and retain the old ones in order to show better trading performance in the upcoming period.

Further, the Company said that on a long-term basis, it was trying to invest in improving its supply chain, which will show growth in FY24.

MFB said that it was installing assembly pick technology, which will help in supply chain improvements. For that, it has hired a European vendor with experience in implementing ingredient-level pick technology, the Company said.

Through this investment, the Company is expecting to simplify its operations, reducing dependence on a temporary workforce, and making the job of picking easier.

Stock update

On 18 November 2022, the Company’s stock was trading 16% down to NZ$0.485, at the time of writing this article.

 

 

 

 

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