My Food Bag revenue increases as hungry Kiwis seek diet variety outside of ‘fush and chups’

Contrary to popular belief, the Kiwis do not only eat ‘fush and chups’.

Just like us Aussies, our neighbours do in fact eat a wide and varied diet not dissimilar to ours.

My Food Bag (ASX: MFB) is one company delivering fresh ingredients across New Zealand in the form of meal kits.

The Company has today released their FY21 results which are ahead of the forecast numbers outlined in their prospective financial information prepared for their IPO last July.

My Food Bag might consider renaming to ‘My Money Bag’ with a reported revenue of $190.7 million, an increase of 24% on FY20 and up $1.2 million on their prospective forecasts. Their reported EBITDA was $29 million, representing a 78% increase on last year’s results.

The Company also anticipates twice yearly dividend payments are right around the corner, seeking to pay an interim dividend in December 2021.

Attributing its success to the rapid adoption of online grocery shopping through the COVID-19 pandemic as well as the introduction of ‘My Choice’, their more flexible meal kit offering allows customers to choose what recipes they want in their bag each week.

They have also reported higher levels of customer retention with an active customer base of over 66,000 hungry Kiwis.

Throughout the year, My Food Bag has also strengthened their relationships with existing suppliers and welcomed new ones. They have entered into a new five year long partnership with New Zealand Post to distribute their product, even on Sundays.

CSR is also a consideration for the Company who have committed to integrating a soft plastics recycling program in partnership with the NZ Packaging Forum and Future Post. The program offers collection of soft plastics from households and aims to reduce the business’s environmental footprint.

In preparation for scaling their operations, My Food Bag has also begun the process of designing and building a facility on the South Island to support the Company’s growing customer base.

Chairman, Tony Carter said “My Food Bag remains a very high quality business positioned for growth and committed to achieving what was laid out in the recent product disclosure statement.”

“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.”

Playing in NZ’s $37 billion retail food sector, the Company have reaffirmed their FY22 forecast and are expecting revenue of $186.4 million, an EBITDA of $34.2 million and NPAT of $20.1 million.