MFB, CVT: 2 NZX foods stocks that can be looked at in February 2022

Highlights

• NZ authorities have made it mandatory for certain fresh and frozen food businesses to bear the name of the country origin of such items.
• My Food Bag Group reveals its solid Q3 FY22 trading update.
• Comvita to unveil its interim performance on 24 February.

NZ businesses must let their consumers know the origin of fresh and frozen foods, i.e., must state the country of origin from where certain fresh and thawed foods come from, cite Consumer Information Standards (Origin of Food) Regulations.

From 12 February onwards, it will become mandatory for certain businesses like those selling fresh fruits, vegetables, fish, cured pork, etc., to give their origin of sealed items. And, from May 2023 onwards, if the food falls under the frozen category, it must bear the country of origin.

Such a move will help consumers make informed decisions while purchasing these items.

It must be noted that the above-mentioned rules cover single-ingredient food and do not include packages of mixed foods. Also, restaurants, takeaway outlets, fundraising events, etc., where food is consumed, will be immediately exempted from such rules.

With this backdrop, let us look at the two popular NZX-listed food stocks that can be looked at this month.

Source: © 2022 Kalkine Media® data source- EODHD/Others

My Food Bag Group Limited (NZX:MFB)

My Food Bag Group Limited is New Zealand’s renowned online food delivery business. A few days ago, the Group had provided its Q3 FY22 trading update, stating its continued strong performance.

Related Read: Which are 4 NZX consumer stocks to be explored this year?

Its deliveries for the said quarter accounted for 388,000, a rise of 9% on pcp, and its preliminary net sales value stood at NZ$52.1 million, up by 15% on Q3 FY21.

Further, despite inflationary pressures, MFB’s active customer base rose by 1.5% to 71,085 towards the quarter-end.

Looking at the results of previous quarters, the Group is hopeful of delivering a positive performance for the remaining part of the year and will release its FY22 results in May this year.

It is noted that MFB has appointed Paul Kelly as its new Chief Supply Chain Officer, who will assume office next month.

On 11 February, at the time of writing, MFB was trading at $1.07, down 4.46%.

Comvita Limited (NZX:CVT)

Comvita Limited is a globally acclaimed company for manufacturing and distributing natural health products. On 24 February, CVT will release its half-year performance ended 31 December 2021.

Interesting Read: Will Comvita (NZX:CVT) achieve 50% digital sales by 2025?

It would be followed by a virtual conference call, which would be hosted by its CEO and CFO for the investors.

On 11 February, at the time of writing, CVT was trading at $3.53, down 1.94%.

Bottom Line

NZ food companies have remained resilient and performed well amid rising inflation, labour costs and produce pricing.