My Food Bag profitability up, customers down marginally

The number of My Food Bag customers stabilised, said chair Tony Carter.

My Food Bag profits are up despite a marginal loss in its customer base and total number of deliveries.

The meal delivery firm reported a net profit after tax (NPAT) of $3 million for the six months to September 30, a 17.8% improvement on the first half of last year.

Profits rose despite revenue falling 1.9% to $82.2m.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) were $7.8m, up 5.3% from $7.4m. The gross margin also improved, rising to 49.8% from 47.9%.

Active customer base and total deliveries fell to 61,100 from 61,600 and to 643,000 from 652,000 respectively.

The average value of a delivery order fell 50 cents to $128.

Chair Tony Carter highlighted the company’s success in stabilising customer numbers, improving productivity through site consolidations and innovation, and reducing net debt to $9.7m from $11.8m.

My Food Bag declared a fully imputed interim dividend of 0.65 cents per share.

Chief executive Mark Winter emphasised the importance of new initiatives like My Food Bag Shop, which enables customers to get deliveries without a subscription.

“We’ve continued to protect and grow our core My Food Bag, Fresh Start and Bargain Box brands, while strengthening them with new offerings.”

Winter said the company plans to enhance customer experience, boost loyalty and drive long term growth.

Due to the expectation that market conditions “will remain challenging” in the second half, he projected full-year trading to be “broadly in line” with 2024.

“We are under way to execute our long term plan to improve the customer experience to drive conversions, customer loyalty and business growth as New Zealand’s economic outlook improves,” Winter said.