My Food Bag delivers rise in earnings

Meal-kit company My Food Bag said tight cost management helped it deliver an 18.1 per cent lift in operating earnings to $34.2 million for the March year.

The company’s net profit — including a $14.1m deduction of one-off transaction costs — came to $20m, up from $2.4m in

2021.

My Food Bag, which listed in March last year, declared a fully imputed dividend of 4 cents per share, bringing the total for the year to 7 cents.

Yesterday’s numbers were in line with earnings guidance issued in April.

“In 2022 the business mitigated a number of macro-environment challenges, such as inflation, labour availability and supply chain pressures,” chairman Tony Carter said.

“These were alleviated via selective price increases and tight cost management, as well as working closely with suppliers to adjust customer offers as required and micromanagement to navigate labour uncertainty, particularly in Q4.”

Revenue came to $194m, up $7.6m on its listing document forecasts and up $3.3m on

2021.

The company delivered more than 18 million meals in 2022 and achieved an average order value of $126.60 — up $2.23 on

2021.

In July, the company introduced My Food Bag Kitchen, a curated collection of food solutions for different meal occasions.

Conversion of active customers into highvalue customers also remained strong; this group had grown 7 per cent year-on-year.

As of May 18, the number of active members was about 66,700.

Shares in My Food Bag were offered to investors last year at $1.85 a share but the stock has been on a slide ever side, closing yesterday up 6c at 85c.