Announcement
MKTUPDTE: MFB: My Food Bag - FY23 Trading Update
08:30am
MFB
15/08/2022 08:30
MKTUPDTE
PRICE SENSITIVE
REL: 0830 HRS My Food Bag Group Limited
MKTUPDTE: MFB: My Food Bag - FY23 Trading Update
My Food Bag Group Limited (MFB) provides this update in the interests of
keeping the market informed of trading during FY23 following the completion
of the first four months of the year.
Trading update
My Food Bag has seen a slower start to trading in FY23 than expected.
As at the end of July 2022, deliveries were down -3.8% compared to the same
time last year. At the same point, active customer numbers had recovered from
the beginning of the year to be 73,145 (in line with the end of July 2021 of
72,105).
Omicron had a marked effect on My Food Bag's supply-side confidence in Q4
FY22 as the company and its suppliers encountered difficulties accessing
staff and dealing with the flow-on problems of incomplete and late
deliveries. My Food Bag responded to these challenges at the time by further
simplifying its product offering and reducing marketing activity, which had
the effect of a slower start to FY23.
Trading to date in FY23 has also been affected by the economic environment
and inflationary pressure on households. This has resulted in a relatively
stronger Bargain Box performance within our portfolio of brands and an
overall pattern of customers trading down to smaller bags. These have had an
unfavourable impact on mix, which negatively impacts earnings.
In terms of financial performance, as at the end of July, while revenue was
up 2.5%, EBITDA was down approximately -8.5% when compared to the same time
last year.
Action is being taken across the business to improve trading performance.
The priority areas are active customer numbers and increasing customer order
frequency. The recent launch of a My Food Bag loyalty campaign has seen
strong uptake and is expected to increase order frequency and retention. A
new Fresh Start 3-night product offering has been launched, providing
customers a further opportunity to achieve their health goals.
We are also continuing to look for opportunities to grow the Kitchen and
innovate our existing products and have recently introduced customisation
initiatives, like gourmet meal upgrades, to grow average order value.
Cost pressures stemming from overarching inflation and weather events
continue to be managed through price increases and ingredient substitution
where possible.
As a consequence of the lower earnings performance to date and anticipated
impact from ongoing economic headwinds, full year earnings for the current
year are expected to be below FY22.
More information on several of the ongoing operational initiatives underway
at My Food Bag will be provided to investors at My Food Bag's annual meeting
on Friday, 19 August.
Authorised by:
Board of Directors of My Food Bag Group Limited
Footnote 1: Deliveries are unaudited and have been normalised for the
difference in trading weeks between the current FY23 financial year and the
previous FY22 financial year to make the two periods comparable.
Footnote 2: EBITDA is unaudited. The revenue and EBITDA figures have been
normalised for the difference in trading weeks between the current FY23
financial year and the previous FY22 financial year to make the two periods
comparable.
Ends
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@wearepead.co.nz
End CA:00396940 For:MFB Type:MKTUPDTE Time:2022-08-15 08:30:45
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