MFB, BFG: 2 NZX stocks in news as food and fibre exports set to rise

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MFB, BFG: 2 NZX stocks in news as food and fibre exports set to rise

food stocks
Image source: Andrew Angelov, Shutterstock.com

Highlights

  • NZ authorities have disclosed that the country’s primary industry exports are on track to deliver a record high export revenue
  • My Food Bag Group to pay a dividend this month
  • Burger Fuel Group reports sound FY22 results

According to the latest reports, NZ’s food and fibre exports are likely to touch NZ$52.2 billion for the year ended June 2022, an increase of nearly 10% over the prior year.

Out of these, dairy export revenue is likely to reach a record high of NZ$21.6 billion during this period, followed by Meat and wool export revenue which is set to hit NZ$12.2 billion, while horticulture sector revenue exports are likely to climb to NZ$12.2 billion in the said period.

This is a piece of welcome news for Kiwi farmers and growers who have continued to deliver quality products despite facing global disruptions and uncertainties.

The NZ government is focused on investing to support its farmers and growers for delivering high-quality products with low emissions and high sustainability, which are in high demand in international markets, thereby providing economic security to the country.

In this context, let us walk through the two NZX-listed food stocks.

NZ food stocks- MFB, BFG

Source: © Andreyyalansky19 | Megapixl.com

My Food Bag Group Limited (NZX:MFB)

My Food Bag Group Limited is New Zealand’s well-known online meal kit provider, with a market cap of over NZ$230 million.

Related Read: OCA, KMD, MFB: 3 NZX stocks under $5 paying dividend this June

Recently, the Company announced setting the foreign exchange rate at 0.9007 for dividend payment to its Australian investors, which will be paid on 16 June.

It must be noted that in its recently declared FY22 results, MFB’s revenue stood at NZ$194 million and NPAT grew to NZ$20.0 million, both up NZ$3.3 million and NZ$2.4 million, respectively, on pcp. Its strong performance was bolstered by operational agility and its innovative pipeline of curated food solutions. Further, it will pay a final dividend of 4.0 cps this month to its investors.

My Food Bag Group aims to deliver enhanced customer flexibility and choice in coming years and boasts a strong pipeline of growth initiatives.

On 10 June, at the market close, MFB traded at NZ$0.92, down 2.13%.

Burger Fuel Group Limited (NZX:BFG)

Burger Fuel Group Limited has more than two decades of experience in the restaurant sector and has a market cap of over NZ$15 million.

A few days ago, the Company released its FY22 results, where its unaudited total system sales clocked NZ$94.2 million, a rise of 6.22% on pcp, majorly on account of benchmarking against lowered sales in April 2020, when the whole set-up was shut because of the COVID-19 pandemic. Further, the Group faced COVID-19-related disruptions, staff shortages, rapidly escalating cost pressures and incurred substantial costs pertaining to the establishment of its new brands. However, the same was partly offset by some Government support received by MFB.

Also Read: CGF, BFG & MFB: 3 F&B stocks to follow as coffee prices heat up

Despite uncertain economic conditions, the Group is looking forward to the year ahead and expects modest growth across its new stores.

On 10 June, at the market close, BFG traded flat at NZ$0.31.

Bottom Line

In spite of facing rising costs, labour shortages and supply chain issues, New Zealand's food industry remained resilient and is looking to produce and supply top-quality products to its consumers both domestically as well as in international markets.

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