Why are these NZX-listed food stocks in focus today?

Highlights:

• My Food Bag Group organises its Annual Meeting
• PGG Wrightson to pay a dividend next month

New Zealand food companies have been dealing with rising food prices, a high proportion of health-related staff absences, supply constraints, shipping delays, as well as an extremely tight labour market.

With this overview, let us look at the three well-known NZX food stocks, namely, My Food Bag Group, Burger Fuel Group, and PGG Wrightson.

Source: © Davizro | Megapixl.com

My Food Bag Group Limited (NZX:MFB)

With more than NZ$145 million as its market cap, My Food Bag Group Limited functions as an online food delivery business, having delivered over 84 million meals to NZers since its inception.

Last month, MFB organised its Annual Meeting. The Board supported the resolutions passed by the shareholders. The resolutions were the election of Cecilia Robinson as MFB’s director and the re-election of Tony Carter as one of its directors. Also, the Board has been empowered to determine MFB’s auditor’s remuneration for 2023.

On 14 September, at the time of writing, My Food Bag Group was climbing 1.59% to NZ$0.640.

Burger Fuel Group Limited (NZX:BFG)

Burger Fuel Group Limited is a big name in NZ’s hospitality sector and its current market capitalisation stands at more than NZ$15 million.

A few days ago, the Company conducted its 2022 Annual Meeting of its Shareholders, in which its FY22 performance was highlighted. Despite a year marked by COVID-19 disruptions, BFG’s FY22 Group revenue remained the same as that of last year at NZ$21.0 million. However, its NPAT declined 19.2% to NZ$575,869  because of higher costs, investment in its new brands, and some abnormal yet significant one-off costs, etc.

With the dampening of the COVID-19 pandemic, the Company is reloading its growth pipeline with site locations and new franchisees and is confident of improved results in the future.

On 14 September, at the time of writing, Burger Fuel Group was up 1.64% to NZ$0.310.

PGG Wrightson Limited (NZX:PGW)

Engaged in an agricultural supply business, PGG Wrightson Limited has a market cap of over NZ$330 million.

Recently, the Company delivered an exceptional FY22 performance, with operating EBITDA rising 20% to NZ$67.2 million and revenue climbing 12% to NZ$952.7 million, majorly on account of an impressive performance by its retail and water businesses. It has declared 16.0 cps as a dividend, to be paid on 3 October, thus taking the full-year dividend to 30.0 cps.

On 14 September, at the time of writing, PGG Wrightson was gaining 0.46% to NZ$4.400.

Bottom Line

NZ food companies not only have to battle escalating food costs but also have to deal with labour shortages, supply disruptions, as well as rising labour costs. However, they remain optimistic about the financial year ahead.