Youfoodz shares jump after tasty second-quarter result
SHARES in recently listed Youfoodz shot 16 per cent higher yesterday after the ready-made meals firm delivered a robust second-quarter result and confirmed prospectus forecasts.
Youfoodz said it would hit its forecasts of $149.9m in revenue for the 2021 fiscal year and a pre-tax profit of $500,000, although it would still produce a net loss of about $600,000 for the year.
Shares in the company rallied 16.1 per cent, or 16c, to $1.155.
But the stock is still well below its December issue price of $1.50. Youfoodz shares traded as low as 90.5c last week.
During the second quarter,
Youfoodz produced more than 4.8 million meals, up 28 per cent, generated gross revenues of $50.6m, up 26.8 per cent and net revenues of $36.7m, up 25.4 per cent.
The meals are sold directly to consumers via home delivery or through supermarkets and convenience stores.
During the quarter, home delivery remained the key contributor to growth, with 42,690 customers added over the three-month period.
Youfoodz chief executive Lance Giles said the latest quarterly results included record growth in certain key areas despite ongoing uncertainty associated with the COVID-19 pandemic.
“Youfoodz is very pleased to report continued strong growth for the business,” he said. “During the period, we implemented a range of operational and marketing initiatives that have not only supported growth during the quarter but also ideally position the business as we aim to continually improve the way we service our existing customers and attract new customers.”