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My Food Bag remains profitable, to resume paying full-year dividends

May 23, 2024
in Business
My Food Bag remains profitable, to resume paying full-year dividends
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My Food Bag chief executive Mark Winter said the company was focused on developing its three core brands.
Photo: Facebook / My Food Bag

Food service company My Food Bag says it remains profitable and has a plan to grow its business and take a greater share of New Zealand’s online food market.

The company’s full-year net profit fell 23 percent to $6 million in the year ended in March, with revenue down 7.7 percent to $162.2m.

Gross profit margin was little changed at 48.5 percent.

“We remain a profitable business with a strong brand and customer offer and the ability to take a greater share of New Zealand’s online food market,” My Food Bag chair Tony Carter said, adding the board would resume paying a full year dividend of 0.5 cents per share for FY24.

“The steps we took in early 2023 to realign aspects of our business to reflect trading conditions, capitalise on market opportunities and add value for our customers is working,” Carter said.

“Against the backdrop of a difficult macroeconomic environment, we have transformed our operations, and the second half of the year has demonstrated that having stabilised and reset the business we can continue to grow profit.”

However, customer numbers dropped slightly to 56,800 versus 57,500 the year earlier.

My Food Bag chief executive Mark Winter said the company was focused on developing its three core brands.

“We have a broad range of meal kit and food solutions that sets us apart from our competitors, and building on the unique properties and proposition of each brand means we’re able to meet more specific customer needs and appeal to a wider audience,” Winter said.

“One of our standout achievements was the successful implementation of pick technology at our distribution centres.

“Not only did this enable us to consolidate our two previous Auckland operations into a single site, but we have seen confined improvement in the operating performance, increasing throughput rates and further reducing quality issues for our customers.”

Winter said the company would continue to invest in four key areas, including its brand, to improve convenience and customer experience and develop ready-made solutions.

“All this ladders up to driving active customer numbers by before delivering to customer lifestyles now and in the future,” he said.

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