MFB, CVT, PGW- A glance at 3 food stocks as NZ food inflation remains high

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MFB, CVT, PGW- A glance at 3 food stocks as NZ food inflation remains high

 MFB, CVT, PGW- A glance at 3 food stocks as NZ food inflation remains high
Image source: Natasha Breen,Shutterstock.com

Highlights

  • New Zealand witnessed a significant swell in its food prices in April 2022
  • My Food Bag Group to publish its FY22 performance report next week
  • PGG Wrightson raises its FY22 EBITDA guidance

Food price inflation across Kiwiland remained high in April 2022, up 6.4% as compared to pcp, majorly on account of rises across all the broad food categories, cites Stats NZ.

Grocery food played a significant part in this movement, owing to the hike in prices of eggs, milk and cheddar cheese. It is noted that grocery food recorded a jump of 6.4%, while fruit and vegetable prices climbed 9.4%, and meat, poultry, and fish prices rose 8.1%.

Also, increased prices of ready-to-eat food and restaurant meals clashed with the minimum wage rise, which resulted in higher prices for dine-in lunches, coffee and hamburgers.

With this backdrop, let us walk through the latest updates of the three NZX-listed food stocks- My Food Bag Group Limited (NZX:MFB), Comvita Limited (NZX:CVT) and PGG Wrightson Limited (NZX:PGW).

NZ food stocks- MFB, CVT, PGW

Source: © 2022 Kalkine Media®

My Food Bag Group Limited (NZX:MFB)

My Food Bag Group Limited, which is engaged in the online food delivery business, has a market cap of NZ$198.80 million.

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Recently, the Company announced releasing its audited FY22 results on 20 May, following which, a conference would be organised for investors and analysts, wherein the management will discuss MFB’s performance for the year ended 31 March 2022.

On 13 May, at the time of writing, MFB was trading at $0.81, down 1.22%.

Comvita Limited (NZX:CVT)

Comvita Limited focuses on producing top-quality honey using natural ingredients and has a market cap of NZ$227.26 million.

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Today, the Company gave insights on its trading performance for the 10 months till the end of April 2022, wherein it clocked an unaudited EBITDA of NZ$23.9 million, and operating profit grew 29% on pcp.

Further, it has forecasted its FY22 EBITDA to lie between NZ$27 million and NZ$30 million. CVT is well placed to navigate through ongoing global supply chain disruptions and is focused on delivering both short-term as well as long-term 2025 strategic plans.

On 13 May, at the time of writing, CVT was trading flat at NZ$3.25.

PGG Wrightson Limited (NZX:PGW)

PGG Wrightson Limited is engaged in horticulture as well as rural and farm supplies, with a market cap of NZ$343.45 million.

Recently, the Company raised its FY22 EBITDA guidance from NZ$62 million to nearly NZ$66 million, underpinned by solid demand in Q3 FY22, which resulted in the strong financial performance of the majority of its business units.

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Despite uncertainties related to the COVID-19 pandemic and supply-chain disruptions, PGW is maintaining a positive outlook for the future.

On 13 May, at the time of writing, PGW was trading at NZ$4.63, up 1.09%.

Bottom Line

NZ food companies and related businesses are making all efforts to offset inflationary pressures and mitigate impacts of supply-chain disruptions.

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