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Saturday 25 June 2022

My Food Bag product range pumps value

20th May 2022 By Bridget O'Connell | | @foodtickernz

My Food Bag says the launch of its Kitchen product range has been one of the main drivers behind an increase to its average order value and a scale-up will now commence.

Source: My Food Bag

The NZX-listed meal kit company achieved an average order value of $126.60 in the year to March 2022, up by $2.23 on FY21, according to its annual results released today.

The company had already announced its full year revenue of $194m, up 1.7% on the prior year and its pro forma EBITDA of $34.2m, up 17.9% on last year. 

“[My Food Bag Kitchen] is designed to tempt customers to purchase more of their weekly shop from My Food Bag, and to meet more meal occasions across the week, plus add on a few special treats,” the company’s annual report said.

“It is one of the reasons behind the uplift in overall average order value during FY22, compared to FY21.”

The platform was introduced in July last year and currently comprises 200 products across 10 categories, with 80 available per week.

“By the end of FY22, we have been achieving attachment rates of 14% and average order value of
$21, which puts us in a good place as we scale the initial pilot offering in FY23,” chair Tony Carter said.

It is also one of the main planks of the company’s drive to capture “a greater share of Aotearoa’s $37bn retail grocery market”.

The plans for the Kitchen range came as active customer numbers shifted around during the year, especially as the group’s just-in-time model came under pressure as Omicron peaked in March, forcing it to suspend product delivery for two weeks and slim down its recipe range.

“Active customer numbers were particularly strong in Q2 and Q3, up 3.8% and 1.5% year-on-year respectively,” MFB said.

“However, numbers softened in Q4, as the business worked through the supply-side challenges during the Omicron outbreak,” it added, closing the quarter with around 61,700 active customers, signficantly down on the 66,500 reported at the same time last year.

Post the results period, this metric has rebounded with current active customers sitting at approximately 66,700 as at 18 May, according to MFB.

Chief executive Kevin Bowler said the business anticipates continued uncertainty across
macro-environment pressures, but also has clear opportunities to grow.

“We have a strategy to continue taking a greater share of Aotearoa’s $37bn retail food sector, via a
pipeline of growth initiatives,” he said.

“Underpinned by our strong brand and distribution reach, we continue to look for opportunities by offering exceptional recipes and ingredients, enhanced customer flexibility and choice.

“Supporting this we will also be expanding our product offering through the Kitchen, while investing in the resilience of our operating environment.”

As well as affirming its financial performance today, including a net profit after tax of $20m, MFB announced a fully-imputed dividend of 4 cents a share. This brings its total dividends for the full year to 7 cents a share.



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