My Food Bag partially beats forecasts in first year as listed company

My Food Bag partially beat its prospectus forecasts in reporting its first result as a listed company, posting a net profit of $2.4 million compared to $8.1m a year earlier.

The Auckland-based meal kit company said its $2.4m net profit for the year ended March 31 included one-off transaction costs relating to the IPO of $14.1m, and it delivered 4.8 million meals delivered during FY21 – a 22.6 per cent increase on its FY20 volumes.

The company earlier forecast its revenue rising to $189.5m in 2021 and a net profit of $800,000 to be adjusted on a pro forma basis to $15.6m.

My Food Bag increased its revenue in the year by 24 per cent to $190.7m, up $1.2m on its prospective financial information forecast.

The company said it had 66,492 active customers in the last quarter of FY21.

It will pay no dividend for the period. Its first dividend is expected to be an interim dividend paid in December 2021.

My Food Bag attributed its growth in the year to its new products and the coronavirus pandemic accelerating the uptake of online shopping and home delivery of food.

Chairman Tony Carter said My Food Bag’s IPO and sharemarket debut on the NZX and ASX was a significant milestone for the company. He said its investment in innovation and technology in the lead up to the listings had helped underpin its strong growth.

In the NZX announcement, Carter said the board was “conscious of how the share price had performed since the IPO” and wanted to reassure investors that My Food Bag remained a “high-quality business positioned for growth”.

“At My Food Bag, we’re all working hard to ensure that the business continues to grow, and we expect that growth to be reflected in the share price over time,” Carter said in a statement.

My Food Bag listed on the New Zealand Stock Exchange on March 5 with many first time investors left disappointed as the stock fell after listing amid high expectations.

The shares opened trading on the NZX at $1.76, down 5 per cent on the initial public offer price of $1.85, and ended the day at $1.74, down 6 per cent.

Across the Tasman on the ASX on opening day, the stock at one stage fell A27c, or 14.6 per cent, to A$1.58 before recovering to be down about 5 per cent.

The company’s stock has continued to trade below its offer price, trading around $1.50.

During the year, My Food Bag said it had experienced higher levels of customer retention.

Carter said the company had ended the year in a strong financial position with a balance sheet well positioned to meet growth opportunities outlined in its product disclosure statement.

“It has been a busy start to the new year. Trading and operations during the first seven weeks of FY22 have been in line with expectations. We’ve launched Bargain Box choice and an upgraded iOS app, as well as delivered strong margins through ongoing improvements to our supply chain,” he said.

My Food Bag said it reaffirmed the FY22 forecast provided in its PFI, being revenue of $186.4m, EBITDA of $34.2m and NPAT of $20.1mfor FY22.

MORE TO COME.

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