Why to explore 5 NZX food and beverage stocks in 2022?

Highlights 

• NZ is a major exporter of food and beverages globally.
• My Food Bag reported a 24.6% rise in its NPAT to $16 million in H1 FY22 on pcp.
• Foley Wines attained record operating earnings of $8 million in FY21.

New Zealand is a leading exporter of food and beverages globally and has a strong capacity in temperate-climate food and beverages production.

NZ’s food and beverage sector is popular for its dairy, wine, kiwifruit, apples, seafood and meat products. The sector exports nearly 46% of all goods and services exports.

Let’s walk you through these 5 NZX food and beverage stocks.

Image source: © 2021 Kalkine Media, Data source- EODHD/Others

My Food Bag Group Limited (NZX:MFB) 

An Online food distributor and the longest standing meal kit operator, My Food Bag, reported a 26% and 11.6% increase on pcp in its NPAT and EBITDA numbers to $9.4 million and $16 million, respectively, for the half year ended 30 September 2021.

It also declared its first interim dividend of 3cps, which will be paid on 16 December 2021. It also reaffirmed its EBITDA guidance of $34.2 million for FY22.

MFB ended the day 0.81% in green to close at $1.25.

PGG Wrightson Limited (NZX:PGW) 

PGG is anticipating an operating EBITDA of nearly $53 million in FY22. It also expects that the trading period for the Livestock business will peak in the H2 of FY22.

RELATED READ: Why to explore 2 NZX food stocks in 2022?

The Group also notified that it would hold its ASM virtually on 6 December due to in-person meeting concerns amid COVID-19.

PGG ended the day flat at $4.4.

Comvita Limited (NZX:CVT)

Renowned honey producer and health supplements provider, Comvita, reported record sales in line with its predictions in the world’s biggest shopping event, 11:11, despite strong results in pcp and pandemic challenges. It is a key event in CVT’s core growth market of China.

RELATED READ: Top 4 NZX consumer stocks to consider in November 2021

CVT expects EBITDA to be between $27 million to $30 million for FY22.

CVT ended the day flat at $3.53.

Delegat Group Limited (NZX:DGL) 

Global wine company based in Auckland, Delegat Group notified on 12 November that its AGM would be held virtually on 7 December 2021. The decision came due to the COVID-19 impact majorly in Auckland, social distancing requirements and mass gathering limits.

RELATED READ: Did 3 NZX food stocks feel the heat of highest inflation?

DGL ended the day 1.11% in red to close at $14.29.

Foley Wines Limited (NZX:FWL)

Wine producer holding many wineries and brands under its name, Foley Wines released its AGM presentation on 17 November. The Group attained record operating earnings of $8 million in FY21, up 3.7% on pcp amid uncertainty and supply chain disruptions.

 However, the Group’s harvest fell 28% on prior year to 5,582 tonnes due to adverse weather conditions. FWL plans to attain operating earnings before tax of $8 million for the year ended June 2022.

SKL ended the day 1.84% in red to close at $1.6.

Bottom Line

The food and beverage industry exports had been facing challenges due to transport challenges and weak demand in key markets.

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