My Food Bag says it performed strongly in year, challenged in Q4

Shares in My Food Bag have struggled to perform since listing in March last year. Photo / Supplied

Meal kit company My Food Bag Group said it had performed strongly over the year to March 31 but said that the Omicron outbreak and inflationary environment had taken a toll on its performance over the fourth quarter.

The company, whose share price has declined significantly since listing in March last year, said its revenue came to $193.9 million, up 1.7 per cent on the 2021 year.

The stock rallied sharply on the announcement, gaining 10c or 11.2 per cent to 99c by early afternoon.

In relation to the prospective financial information (PFI) disclosed at the time of My Food Bag's initial public offer, revenue was up $7.5m on PFI and ebitda and net profit after tax were in line.

The company's PFI forecast was for ebitda of $34.2m and a net profit of $20.1m.

"These unaudited results demonstrate My Food Bag's continued track record of strong year-on-year growth and delivery to forecast," the company said in a market update released today.

"We are pleased with this preliminary result, and look forward to providing our investors with more detailed information regarding our financial performance next month, including our audited financial statements and annual report," the company said.

My Food Bag said the Covid-19 Omicron outbreak and inflationary environment presented "ongoing challenges to its operating procedures, productivity and costs in the fourth quarter".

"The high priority for the business remained keeping its people and suppliers safe, while being mindful of ongoing business continuity risks posed by the pandemic.

"The result of these temporary impacts dampened Q4 financial performance, however these impacts have largely been alleviated in recent weeks as our processes have adapted and case numbers have started to reduce in Auckland."

My Food Bag will release its audited results on May 20.

The shares were offered to investors at $1.85 each but they have failed to fire since listing just over a year ago.