- Aucklanders are spending billions on fast food and takeaways.
- My Food Bag anticipates continued uncertainty amid tough macro atmosphere.
- BFG is a robust brand in NZ and expects to maintain consumer demand sales in FY23.
Aucklanders have spent a staggering $6.7 billion on fast food and takeaways in the previous 6 years. An analysis of the Marketview data that tracks Eftpos spending was done by Health Coalition Aotearoa and the Helen Clark Foundation.
The data revealed 93% of the top junk food sales were in high-deprivation areas.
Subsequently, Auckland Regional Public Health Service and Health Coalition Aotearoa have stressed the requirement of new legislation that puts a stop to unhealthy food and drinks advertising.
Amid this background, let’s look at how these food stocks are doing on the NZX.
Source: © Draghicich | Megapixl.com
My Food Bag Group Limited (NZX:MFB)
Online meal kit provider My Food Bag has witnessed a $3.3-million rise on pcp in revenue to $194 million and an 18.1% rise in EBITDA to $34.2 million in FY22. The Company delivered over 18 million meals across the year and expanded into new categories with My Food Bag Kitchen.
The Group’s contribution margin rose 1.6 percentage point YOY and transitioned the South Island factory to support future growth requirements.
The Group predicts continued ambiguity amid macro pressures and continues to look for prospects by providing remarkable recipes and ingredients.
MFB ended the day 2.44% in the green to close at $0.84.
Burger Fuel Group Limited (NZX:BFG)
Fast food products provider Burger Fuel delivered a reasonable performance in FY22.
The Group’s total system sales rose 6.22% to $94.2 million in FY22 compared to the same period last year, but NPAT fell 19.2% on pcp. There were 58 BurgerFuel restaurants operating in NZ and 12 operating in the Middle East as of 31 March 2022.
BFG is a robust brand in NZ and expects to maintain consumer demand sales in FY23 despite increased prices. However, there remains substantial uncertainty related to the COVID-19 pandemic and global economic conditions that may impact BFG’s performance.
BFG ended the day flat to close at $0.315.
T&G Global Limited (NZX:TGG)
NZ’s leading producer of fresh fruits and vegetables TGG announced on Wednesday that it had signed its first sustainability linked loan of $180 million in the horticulture sector.
The Company pledged to the GHG emissions reduction target that lines up with restricting global temperature increase to 1.5 degree celsius and embark on a thorough climate risk adaptation plan.
TGG’s loan is a strategic move to go ahead towards long-term sustainability. The Group will pay reduced loan costs if it achieves sustainability targets. However, it will have to bear consequences if these targets are not met.
TGG ended the day flat to close at $2.77.
Auckland health authorities remain concerned about the health of adults and children and seek regulation to protect them from unhealthy food and drinking habits.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)