Source: Radio New Zealand
My Food Bag is forecasting its full-year net profit will be between $6.4 million and $6.8 million
Strong sales in the second half of the year have helped put My Food Bag on track to deliver year-on-year profit growth.
The NZX-listed company is forecasting its full-year net profit will be between $6.4 million and $6.8 million, up from $6.3 million in the 2025 financial year.
Revenue is tipped to grow 4.9 percent on the previous year, with the level of retained customers in the meal kit business up year-on-year, according to chief executive Mark Winter.
“We’ve prioritised providing our customers with greater flexibility, offering the more convenience and reiterating the value of our offering,” he said.
Winter says the meal kit business has expanded in the past year to target more health-conscious customers, and now offers a high protein option, a diabetes plan and meals tailored to those taking weight loss drugs.
My Food Bag chief executive Mark Winter. Supplied
Rising cost of ingredients a headwind
Ingredient price inflation is still a challenge for My Food Bag, said Winter, with food prices generally up 4.5 percent in the year to February, according to Stats NZ.
But Winter said the company has managed to improve its gross margin for the second half, compared to the prior year.
“We’ve always prioritised what we can do internally to take unnecessary cost out that the customer doesn’t value and that includes at assembly sites around productivity.”
“We invested a substantial amount of money a couple of years ago in implementing light automation, so initiatives like that have allowed us to partially offset the food price inflation costs that we’re seeing come through.”
With the Middle East conflict generating an uncertain outlook for inflation, Winter said the company is keeping a close eye on developments and staying in contact with suppliers.
The company expects to release its confirmed full-year results in May.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
