Which are 5 attractive NZX food & beverage stocks?

Highlights 

  • The a2 Milk Company shows a dip in the NPAT in FY21.
  • Comvita Group on strong footings, confident of its unique business model.
  • My Food Bag reports strong FY21 results and confirms its guidance.

A2 Milk Company (NZX:ATM) (ASX:A2M)

This is one of the biggest dairy brands in NZ. It operates across other markets like Australia, New Zealand, the USA, and China.

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Image source: © 2021 Kalkine Media New Zealand Ltd

In its earnings report for FY21, it saw a net profit drop by 79.1% to NZ$80.7 million due to COVID-19-related disruptions and a rapidly changing infant nutrition market in China. The alternative milk and infant formula revenue fell by 30.3% to NZ$1.21 billion. Even though the Company remains confident of the fundamentals of its business, with new opportunities in product innovation and development, the Company is confident of its long-term outlook.

In the short term, for FY22, the outlook remains uncertain, and the Company says it will take time to recover.
Also Read: Can a2 Milk Company (NZX:ATM) regain its lost ground ?

On 17 September, the stock was trading down by 1.76% at NZ$5.580, at the time of writing.

My Food Bag Group Limited (NZX:MFB)

It’s an NZ-based meal kit operator. It has delivered a record 88 million meals to over 300,000 Kiwi households in eight years after its launch. It reported a revenue rise of 24% to NZ$190.7 million and a 78% increase in Pro forma EBITDA to NZ$29 million over pcp.

Related Read: Is My Food Bag (NZX:MFB) same as HelloFresh?

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

The Company was able to attract new customers due to its home delivery business model and product innovations.

On 17 September, the Company traded up by 1.43% at NZ$1.420, at the time of writing.

Read more: Why these NZX consumer shares are worth following

Marlborough Wines Estate Group Limited (NZX:MWE)

It is a leading wine producer in the Awatere Valley area of Marlborough. This Company is famous for its wines and unique flavours which come with it. The harvest had been impacted this year due to some factors, but the Company has produced some of the best wines in different regions due to extra dry weather. Its wines have even won international acclaim.   
Related Read: 10 hot NZX penny stocks for September 2021

On 17 September, the stock was NZ$0.240 down by 2.04%, at the time of writing.

Comvita Limited (NZX:CVT)

This Company produces organic honey, which is famous all over the world as the Manuka brand. It is a premium product, which is known to have very good health properties.  According to the full-year results declared by the Company, the NPAT was NZ$9.5 million as compared to NZ$9.7 versus pcp. The EBITDA was NZ$25.5 million, and the gross profit was 730 bps.

Also Read: Comvita (NZX:CVT) Hits Profitability In Interim Results

The Company is very confident of its unique business model and according to the management team, while the Company is not there, it is on the path of achieving its performance goals. One major focus for the Company is to achieve 50% digital sales by 2025.

It announced a dividend of 4 cps for its shareholders.

On 17 September, the Comvita Group Limited traded flat at NZ$3.730, at the time of writing.

Burger Fuel Group Limited (NZX:BFG)

The year 2020 was not that good for BFG. However, post that, it has moved to transition to a multi-brand company with the flagship brand being Burger Fuel. BFG also developed new outlets and has been seeing a steady revenue flow from those. In FY21, the Company decided not to open new stores but make the best use of existing ones till the economy recovers fully.

On 17 September, the stock was trading down by 5.13% at NZ$0.370, at the time of writing.

Bottomline: The food and beverage sector faced challenges due to COVID-19-related disruptions, but some companies did navigate the pandemic successfully by innovating and making new strategies.

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