My Food Bag (NZX:MFB): Did the pandemic give a boost to its growth?

Highlights

  • My Food Bag delivered a strong year of growth and delivery.
  • It successfully navigated through COVID-19 by providing more choices to customers and building charitable partnerships.
  • MFB reaffirmed the FY22 PFI forecast.

My Food Bag Group Limited (NZX:MFB) is the longest-standing meal-kit provider of New Zealand. It has delivered almost 88 million meals to over 300,000 Kiwi households since its launch 8 years ago.

The Group provided hundreds of thousands of meals to Kiwis who were isolating as it operates as an essential service. It also maintained a safe work environment while fulfilling increased customer demands during every lockdown related to COVID-19 and Alert level changes.

Food Delivery Executives

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The Group reported a 24% rise in revenue to $190.7 million and a 78% increase in Pro forma EBITDA to $29 million for FY21 compared to FY20.

Related Read: My Food Bag (NZX:MFB): Why were its meal kits a rage amid COVID-19?

The business also consistently grew active customers due to new product development and keeping new and reactivated customers after COVID-19 peaks.

Product innovation till date

My Food Bag offers wide variety of meal-kit bags in NZ under the My Food Bag, Bargain Box, and Fresh Start brands. The Group also creates innovative seasonal and one-off bags to propel customer demand and brand importance, such as My Christmas Bag and My Winter Wellness Bag.

RELATED READ: Is My Food Bag (NZX:MFB) same as HelloFresh?

MFB launched My Choice under the Company’s brand in July last year. Under this, customers can pick 12 choices across various family-friendly recipes, ready-made meals, and fast cooking alternatives each week.

A new enterprise resource planning (ERP) system was also implemented in 2020. The technology helps the team members spend time on value-add tasks, enhances the quality of the product, and provides data management. 

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The business recently entered the large ready-made meal category with MADE brand. MFB also began offering recipe choice across the Bargain Box brand in April 2021 and also introduced My Food Bag Kitchen in July 2021, expanding beyond weeknight dinners

On 14 September, at the time of writing, MFB was trading at $1.37, down 0.72%.

Outlook ahead

MFB reaffirmed the FY22 PFI forecast and plans to pay a dividend of 7cps, of which 40% was paid in December 2021, and 60% was paid in June 2022. MFB is also constructing for the future in South Island, increasing its capacity by 60% compared to the current site. The assembly site is likely to get ready by April 2022.

The Group plans to continue being the leader in the meal-kit market and using its established platform to unsettle the business-to-consumer market. 

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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