Announcement
HALFYR: MFB: My Food Bag achieves record earnings; confirms dividend
08:31am
MFB
19/11/2021 08:31
HALFYR
PRICE SENSITIVE
REL: 0831 HRS My Food Bag Group Limited
HALFYR: MFB: My Food Bag achieves record earnings; confirms dividend
19 November 2021
NZX/ASX Code: MFB
My Food Bag achieves record earnings and confirms maiden dividend
My Food Bag is pleased to release its half year results for the six months
ended 30 September 2021. These results demonstrate a strong first half of the
year for the business, underpinned by a combination of operational
achievements and further product innovation.
Highlights include:
o NPAT of $9.4 million, up 24.6% on H1 FY21
o EBITDA of $16.0 million, up 11.6% on H1 FY21
o Active customers up 3.3% compared to the end of H1 FY21
o High value active customers up 3.1% year-on-year
o Revenue of $98.4 million, down 6.5% year-on-year due to 2020 nationwide
lockdown spike
o Launch of My Food Bag Kitchen, the business' first significant step outside
of weeknight meals
o Expanded recipe choice to include Bargain Box and Fresh Start brands
o Fully imputed interim dividend of 3.0 cents per share declared
Tony Carter, Chairman of My Food Bag says "These results mark the halfway
point of our first full year as a publicly listed company and demonstrate
clear progress, and the achievement of some important milestones, as we grow
within New Zealand's $37 billion retail food sector.
"We are pleased to have achieved record earnings as a business and to be in a
position to declare our first dividend as a listed company. While demand
remained solid through the half year period, total deliveries of 808k and an
average order value of $121.81 were lower than the same period in FY21, owing
to a spike during the 2020 nationwide lockdown in the early part of the
pandemic response.
"Pleasingly, during H1 FY22, the business increased active customer numbers
by 3.3% and grew high value active customers by 3.1% year-on-year, with
margin improvements further increasing their value. Retained customer numbers
remained strong at around 60% of active customers throughout the last six
months."
As a result of H1 FY22 performance and outlook, the Board is pleased to
reaffirm its FY22 EBITDA guidance of $34.2m, which represents an 18%
improvement year-on-year. While revenue for FY22 is now anticipated to be
slightly improved on the Prospective Financial Information (PFI), this is not
expected to result in an increase in earnings for the period given higher
input costs and operating expenses associated with operating safely during
the pandemic and introducing new product initiatives.
The Board has declared a fully imputed interim dividend of 3.0 cents per
share, payable on 16 December 2021, with a final dividend of 4.0 cents per
share forecast to be paid in 2022 following the release of FY22 results. This
dividend allows for sufficient retained cash to fund growth requirements
internally and, on a full year basis, represents a distribution of
approximately 85% of anticipated net profit after tax (within My Food Bag's
distribution policy which aims to distribute between 70% and 90% of NPAT).
CEO, Kevin Bowler, commented: "During the first half of FY22, we launched the
first phase of the My Food Bag Kitchen, which is an important step towards
expanding our offering beyond meal kits and ready made meals. We now offer a
range of curated go-to grocery products and recipes, specifically selected by
our chefs, that customers can add to their orders. This is our first
significant step outside of weeknight meals and signals our move beyond
providing a solution to the original question of 'What's for dinner?' towards
providing more everyday solutions for our customers for more meal occasions.
"Throughout the first phase of the Kitchen, we achieved attachment rates in
line with internal targets of 10% to 15% and an average order value in excess
of $20. We also identified significant opportunities to invest and accelerate
further to establish ourselves as a source of highly valued solutions, beyond
meals, for our customers," says Bowler.
The business also expanded its recipe choice offering. My Food Bag My Choice
now has 15 meal options a week and meal choice is also now part of the
Bargain Box and Fresh Start brands.
"Our data demonstrates that recipe choice is driving higher active customer
growth and increasing order frequency. So, the expansion of choice is one of
the underpinning factors of our confidence in H2 performance," says Bowler.
Looking beyond the PFI period and into FY23, the business continues to see
opportunities for growth from its core product offering and its expansion of
the My Food Bag Kitchen, and is well positioned to pursue inorganic growth
opportunities that arise and offer value to the business.
Ends
Authorised by:
Board of Directors of My Food Bag Group Limited
For investor or analyst queries, please contact:
Mark Winter
+64 9 886 9840
ir@myfoodbag.co.nz
For media queries, please contact:
Louisa Kraitzick
021 299 2628
louisa.kraitzick@pead.co.nz
This release should be read in conjunction with the unaudited interim
financial statements accompanying this release and the NZX results
announcement form.
End CA:00383136 For:MFB Type:HALFYR Time:2021-11-19 08:31:19
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