MFB - My Food Bag

[Lego_Man]

Thought I would have a look to see if it was worth a punt. I came to the conclusion that there will be no dividend and better bets elsewhere, like 2CC, TWR, HGH etc.

Looks like the market agrees with you - price sliding into earnings which is usually not a good sign.

[Rawz]

Looks like the market agrees with you - price sliding into earnings which is usually not a good sign.

prices sliding everywhere. wish i had more money but fully invested. cant sell what i have to move around as what i hold i believe is super cheap.

[silverblizzard888]

Not much from the company lately, but I think they should deliver an alright profit in the second half. Cost pressures have eased a bit on food and given they haven't increased their pricing for their meal kits, it looks like its stable enough for them not to make price increases. They will have continued to focus on reducing cost and finding more efficiencies along with reducing debt. 2nd half usually delivers a higher profits than the 1st half due to lower seasonal food prices.

2nd Half Expectations
Revenue: $70-75m
NPAT: $2.5-3.5m

[Recaster]

They test for goodwill impairment annually and they are due a big write-down.

They should report a large loss unless they have bullied a compliant auditor.

[ralph]

Not much from the company lately, but I think they should deliver an alright profit in the second half. Cost pressures have eased a bit on food and given they haven't increased their pricing for their meal kits, it looks like its stable enough for them not to make price increases. They will have continued to focus on reducing cost and finding more efficiencies along with reducing debt. 2nd half usually delivers a higher profits than the 1st half due to lower seasonal food prices.

2nd Half Expectations
Revenue: $70-75m
NPAT: $2.5-3.5m

I will go with that & agree totally ,would be a good result again

[bulltrap]

They test for goodwill impairment annually and they are due a big write-down.

They should report a large loss unless they have bullied a compliant auditor.

The 2023 FY report (https://investors.myfoodbag.co.nz/FormBuilder/_Resource/_module/yjIwqod6gUO7ZC-T4Wdz6Q/file/MFB_Report_2023.pdf) went into some detail about how the impairment test works. It apparently has some fairly wide guard rails, within which no impairment is needed. Higher interest rates this year, combined with lower than forecast revenue growth, could indeed be a concern.

That said, the intangibles have been on the books and withstanding scrutiny since the company was smaller and less profitable than it is now (as at 2024H1). Maybe it's justified if you view it as around $80M of 'assets' that have been 'producing' around $20M operating earnings annually.

It doesn't appear that impairment would be needed just to account for the drop in market cap, if that's what you're suggesting. I'm mystified though that low market capitalization really is treated as an 'indicator of impairment' (as per NZ IAS 36 (https://www.bdo.co.nz/getmedia/748bde79-da6a-4072-8c4e-2fbf102fccba/2024-NZ-IAS-36.pdf)). Trusting the market over auditor scrutiny of yet-to-be-released financials smacks of magical thinking, making market expectations of write-downs a self-fulfilling prophecy.

[silverblizzard888]

Results to be announced 23rd May prior to market opening and a conference call to be followed at 11am.

https://www.nzx.com/announcements/430766

[carrom74]

Should help a bit in keeping costs down.No wonder there was a price freeze..

https://www.rnz.co.nz/news/country/516263/cheaper-fruit-and-veges-due-to-superb-growing-conditions

[silverblizzard888]

Should help a bit in keeping costs down.No wonder there was a price freeze..

https://www.rnz.co.nz/news/country/516263/cheaper-fruit-and-veges-due-to-superb-growing-conditions

Yup that should bode well for them, as long as prices are stable then they have a clear margin and can make a profit. Businesses like MFB suffer the most when prices are rising and it takes out their margin before they can make any increases or reduce cost. All the pressure seems to have eased a bit now, so they should have more control over their profits.

If we look at the past reported 12 months we see a clear trend between the 6 months for the first half of this financial year and the last half of the previous financial year. Both generate revenue in the 80s and profit consistent around $2 to $2.5m mark. Those two halves were probably the toughest for the business in terms of managing cost and I'd expect either the upcoming financials should be a bit better or the next half after that should show some good results. As long as they can forecast how much business they will have and be able to reduce cost accordingly then they will always make a decent profit, its simply the nature of this type of business.

1H FY24 - Revenue $83.8m Profit $2.5m
2H FY23 - Revenue $81.3m Profit $2m

[silverblizzard888]

Just for fun I decided to run an exercise for the assumption of cost savings and benefits we could expect from the upcoming financial report.

Expense reducing factors underpinning upcoming results:

Lower vegetable cost as much as 25% lower in some months compared to prior years. If we conservatively assume 15% savings on vegetables over the period and assume out of $63m cost (on $70m revenue) that 1/3 is vegetable cost, we’d have a saving of $3.15m from a similar time last financial year.
Savings $3.15m

New pick technology enables reduced overall labour needed to assemble meal kits. Last reported half year only saw 4 months benefit, while upcoming results see full benefits from this technology.
Conservatively likely no addition savings, just efficiencies to add more recipes

Highbrook assembly centre closed at the end of September 2023, meaning we will see the savings in the upcoming financials of up to $500k since leasing cost was about $1m per year.
Savings $500k

Additional sales from new offerings like ‘The Butcher’ and ‘BBQ Box’ will help add to declining sales and maintain active customer interest during the summer period when sales are usually lower. Due to the short period of the offering profit contribution may be low.
Profit contribution $150k

Reduced debt will reduce financial costs, last report net debt was $14m, which was reduced from $15m, with financial cost of the last reported half year at $1m, which might suggest interest on their loan could be as high as 13-14%. With less capital expenditure and lease cost, more capital is available to repay debt. Net debt should be able to reduce by $2m to $12m net debt, saving around $200k since repayment happens throughout the 6 months and not at the beginning so full savings is not likely.
Savings $200k

Total savings $3.85m + added profit $150k = $4m

Conservatively if assume $2m of that is added to the bottom line, which after tax would be $1.44 NPAT, add that to 2H FY23 of $2m NPAT, we end up with $3.44m NPAT and within my expected range, however I would not be disappointed if they exceeded that.

*Factors that would cut into the savings are increased cost observed in meat and sauces, employee wages, current lease sites and potential increase in interest rates over the period.

[winner69]

Just for fun I decided to run an exercise for the assumption of cost savings and benefits we could expect from the upcoming financial report.

Expense reducing factors underpinning upcoming results:

Lower vegetable cost as much as 25% lower in some months compared to prior years. If we conservatively assume 15% savings on vegetables over the period and assume out of $63m cost (on $70m revenue) that 1/3 is vegetable cost, we’d have a saving of $3.15m from a similar time last financial year.
Savings $3.15m

New pick technology enables reduced overall labour needed to assemble meal kits. Last reported half year only saw 4 months benefit, while upcoming results see full benefits from this technology.
Conservatively likely no addition savings, just efficiencies to add more recipes

Highbrook assembly centre closed at the end of September 2023, meaning we will see the savings in the upcoming financials of up to $500k since leasing cost was about $1m per year.
Savings $500k

Additional sales from new offerings like ‘The Butcher’ and ‘BBQ Box’ will help add to declining sales and maintain active customer interest during the summer period when sales are usually lower. Due to the short period of the offering profit contribution may be low.
Profit contribution $150k

Reduced debt will reduce financial costs, last report net debt was $14m, which was reduced from $15m, with financial cost of the last reported half year at $1m, which might suggest interest on their loan could be as high as 13-14%. With less capital expenditure and lease cost more capital is available to repay debt. Net debt should be able to reduce by $2m to $12m net debt, saving around $200k since repayment happens throughout the 6 months and not at the beginning so full savings is not likely.
Savings $200k

Total savings $3.85m + added profit $150k = $4m

Conservatively if assume $2m of that is added to the bottom line, which after tax would be $1.44 NPAT, add that to 2H FY23 of $2m NPAT, we end up with $3.44m NPAT and within my expected range, however I would not be disappointed if they exceeded that.

*Factors that would cut into the savings are increased cost observed in meat and sauces, employee wages, current lease sites and potential increase in interest rates over the period.

Good stuff sb ….but you seem to have missed that without those savings they would have made $Xm anyway in H2…would that mean full year would be $2.5m (H1) plus $Xm plus savings $1.44m? …more than $3.44m

My expectation is something about $5m …. Bearing in mind that H223 plus H123 is $4.5m ….a rolling 12 month number and you’d think it would higher this time round eh.

You seem pretty eager to getting a bargain here eh …..we’ll see what eventuates eh

[silverblizzard888]

Good stuff sb ….but you seem to have missed that without those savings they would have made $Xm anyway in H2…would that mean full year would be $2.5m (H1) plus $Xm plus savings $1.44m? …more than $3.44m

My expectation is something about $5m …. Bearing in mind that H223 plus H123 is $4.5m ….a rolling 12 month number and you’d think it would higher this time round eh.

You seem pretty eager to getting a bargain here eh …..we’ll see what eventuates eh

My base was working from H2 FY23 which was $2m NPAT and then adding back in the savings minus tax of $1.44m, giving me $3.44m NPAT for the 6 months. Add that to H1 Fy24 of $2.5m, the overall NPAT for FY24 would be $5.94m NPAT

[winner69]

My base was working from H2 FY23 which was $2m NPAT and then adding back in the savings minus tax of $1.44m, giving me $3.44m NPAT for the 6 months. Add that to H1 Fy24 of $2.5m, the overall NPAT for FY24 would be $5.94m NPAT

I understand now ….makes sense

Full Year $6m would be a good result …..and market hopefully would see it as such

[silverblizzard888]

Having seen how aggressive Hellofresh is marketing themselves lately, I think it might just be the reason MFB is keeping quiet about their performance, so that they don't give too much to their competitors. By the time they announce their results the data will have been two months old and less likely used against them.

[nztx]

Having seen how aggressive Hellofresh is marketing themselves lately, I think it might just be the reason MFB is keeping quiet about their performance, so that they don't give too much to their competitors. By the time they announce their results the data will have been two months old and less likely used against them.


How about the "keeping the market informed' responsibility under NZX listing rules ? ;)

Surely a few positive vibes tossed about, like in past years (Feb-Mar) rather than a big fat no show wouldn't go astray & draw in a bit of confidence ? :)

If anything, the competition would be confused & may get a headache or two out of it ..

[carrom74]

The trading pattern over few weeks looks as if there is a deliberate attempt to keep the sp down.But it could also be no news coming out from the company- it’s 5 months and literally nothing.SB is right on HF.. but the last update in Nov was also wishy washy… Popcorn time soon!

[Baa_Baa]

The trading pattern over few weeks looks as if there is a deliberate attempt to keep the sp down.But it could also be no news coming out from the company- it’s 5 months and literally nothing.SB is right on HF.. but the last update in Nov was also wishy washy… Popcorn time soon!

This MFB has literally been an abject lesson in why small companies with greedy founding investors IPO on NZX. There was absolutely no purpose whatsoever for listing, other than the founding money exiting at massively inflated valuations, to make them rich. And, guess what, those founders were oh so successful at doing it, sucking the money in from new entrants including clients and staff. Disgraceful and it was noted here well before the IPO occurred.

Now what we have left is virtually a shell of its former self, probably appropriately valued by the market at massive multiples less than the founders contrived IPO exit. NZX should hold its head in shame for facilitating this robbery.

My assessment of company value (and SP) many many month ago appears to be almost correct except the SP is a cent lower at the moment. I don't think this will ever get back to anywhere near close to the IPO exit SP.

[bulltrap]

A change in my circumstances has enabled me to try 'dog fooding' the MFB product and also HelloFresh for comparison. I had assumed they coexist as a duopoly, with similar products and pricing. I'm now questioning that viewpoint.

In my second week of MFB currently, I've been impressed with the quality of the ingredients, the nutritional balance, the variety and ease of preparation. Nice job.

My #1 gripe here is there's no way to flag dietary restrictions, and I've had to hand off some kits that contained verboten ingredients. Partly my fault, but from reading reviews it's a common complaint. Fix that pronto.

For the next week I'm trying HelloFresh, and my immediate impression on sign-up is that they are desperate scumbags. I'm happy to go into details, but I'm sure we've all encountered desperate scumbags and have some idea of how they operate. My first order will be my last, even if the food turns up and turns out OK.

My revised view of these two is that MFB is the better company/product, and should be the ultimate benefactor of HelloFresh's combo of aggressive marketing and terrible service.

While as a shareholder I'd still welcome a takeover bid to end my suffering, as a customer and a patriot I'd find it tragic to have this home-grown success story assimilated into an evil multinational.

[billkiapi]

This MFB has literally been an abject lesson in why small companies with greedy founding investors IPO on NZX. There was absolutely no purpose whatsoever for listing, other than the founding money exiting at massively inflated valuations, to make them rich. And, guess what, those founders were oh so successful at doing it, sucking the money in from new entrants including clients and staff. Disgraceful and it was noted here well before the IPO occurred.

Now what we have left is virtually a shell of its former self, probably appropriately valued by the market at massive multiples less than the founders contrived IPO exit. NZX should hold its head in shame for facilitating this robbery.

My assessment of company value (and SP) many many month ago appears to be almost correct except the SP is a cent lower at the moment. I don't think this will ever get back to anywhere near close to the IPO exit SP.

You are saying exactly what I was thinking- doesn't speak well of new IPOs in the future after these deals are founder friendly and not shareholder friendly in the end.

[blackcap]

You are saying exactly what I was thinking- doesn't speak well of new IPOs in the future after these deals are founder friendly and not shareholder friendly in the end.

THey are founder friendly, only in so much that new shareholders accept the "BS" of the IPO. If new shareholders did DD and did not purchase any IPO shares then these IPO's would have to lower their entry point. I guess its the gullible, and brokers willing to flog off to the gullible that allow for this to happen.

Back in 4th form economics we were taught "Caveat Emptor". I guess that is not taught at schools anymore?

[Rawz]

Its just capitalism, people making money. Don't see what the big fuss is all about.

[Baa_Baa]

Its just capitalism, people making money. Don't see what the big fuss is all about.

You might feel differently if you had forked out $1.85 per share in the IPO. I didn't, but I was appalled at how the brokers hustled and got the IPO away at that ridiculous price, to be very quickly followed by the pay-out and exit of the founders.

[blackcap]

You might feel differently if you had forked out $1.85 per share in the IPO. I didn't, but I was appalled at how the brokers hustled and got the IPO away at that ridiculous price, to be very quickly followed by the pay-out and exit of the founders.

No one forced you to by at the $1.85 IPO price. Like with any capital acquisition, you need to do your own research.

If there was something illegal, or the IPO documents were misleading, well then that is a different story.

Agree, the hustle on this one was intense. Our friend "who called Nadia the fluff" does have a point (not the fluff bit) that this IPO was all gloss and no substance. That said, any IPO that is all gloss, rings alarm bells for me.

[Baa_Baa]

No one forced you to by at the $1.85 IPO price. Like with any capital acquisition, you need to do your own research.

If there was something illegal, or the IPO documents were misleading, well then that is a different story.

Agree, the hustle on this one was intense. Our friend "who called Nadia the fluff" does have a point (not the fluff bit) that this IPO was all gloss and no substance. That said, any IPO that is all gloss, rings alarm bells for me.

I DID NOT buy the IPO, I did my research and quickly came to the conclusion that it was amped to the max and was simply the founders payout exit strategy.

[blackcap]

I DID NOT buy the IPO, I did my research and quickly came to the conclusion that it was amped to the max and was simply the founders payout exit strategy.

I know YOU didn't, you said that in your earlier post. I should have been more clear. My "you" was a generic for everyone. Cheers.

[carrom74]

I guess we all knew from the get go this IPO was all gloss. The SP fell from the first day( that’s a record of sorts). What I am focusing is whether the price now worth the punt? It’s still a profitable business and making about 5-6M a year in NPAT. If there are able keep dividends aside,pay of some of their debt and keep increasing their customer base… i thinks it’s game on… EOTD they are into food business albeit for a premium market.. but still everyone needs to eat.

[billkiapi]

THey are founder friendly, only in so much that new shareholders accept the "BS" of the IPO. If new shareholders did DD and did not purchase any IPO shares then these IPO's would have to lower their entry point. I guess its the gullible, and brokers willing to flog off to the gullible that allow for this to happen.

Back in 4th form economics we were taught "Caveat Emptor". I guess that is not taught at schools anymore?

Back in 5th form and beyond I was taught Fair Trading Act and Listing Rules too.

[Sideshow Bob]

https://www.nzx.com/announcements/431501

My Food Bag resumes paying dividends with second half earnings up year on year
• Revenue of $162.2 million, down 7.7% compared to FY23
• EBITDA of $16.0 million, compared to $18.2 million in FY23 (1)
• NPAT of $6.0 million, compared to $7.9 million in FY23
• H2 NPAT of $3.5 million, compared to $2.0 million in FY23 H2 NPAT – up 75% year on year
• Bargain Box deliveries up 19.5% and an upweighted focus on each of the three core brands
• Successful implementation of pick technology, averaging 99% accuracy in H2 FY24
• Net debt reduced by $3.5m to $11.8m
• Fully imputed final dividend of 0.5 cent per share declared, payable on 20 June

Meal kit and food solutions business, My Food Bag Group Limited, today reported EBITDA of $16.0 million for the twelve months to 31 March 2024 (FY24).(2)While NPAT was $6.0 million in FY24, compared to $7.9 million in FY23, the business achieved a H2 NPAT of $3.5 million compared to FY23 H2 NPAT of $2.0 million – up 75% year-on-year. This demonstrates the success of the business’ cost-out initiatives and realignment of its strategic pillars, as well as My Food Bag's resilience in a difficult macro-economic environment.The average order value was $129.54 across the year, marginally down from $130.11 in FY23. This was largely driven by an upswing in Bargain Box customers, changing the business’ brand mix.

Tony Carter, Chairman of My Food Bag, says this financial year marks a successful transition for My Food Bag’s business.“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.“Against the backdrop of a difficult macro-economic 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,” says Carter.

Active customer numbers have remained relatively stable at 56,800 at the end of FY24, versus 57,500 at the end of FY23.(3)Gross margin also remained stable at 48.5% across FY24, compared to 48.4% during FY23. While contribution margin was down slightly at 22.6% in FY24, versus 23.5% in FY23.“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,” says Carter.

Based on FY24 performance and performance during the start of FY25, the Board is pleased to resume paying dividends and confirms a fully imputed dividend of 0.5 cent per share for FY24.

Business highlightsMark Winter, CEO of My Food Bag, says: “Throughout FY24, we transformed our operations, upweighting our focus on each of the three core brands to highlight the unique value propositions of the My Food Bag portfolio to current and future customers.“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.

“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 continued improvement in the operating performance, increasing throughput rates and further reducing quality issues for our customers.“We averaged 99% accuracy across all types of customer quality issues, which translates into reduced customer credits as well as increased customer satisfaction scores,” says Winter.

Outlook
Convenience, health and wellness, and e-commerce are sustaining trends in the retail food sector, and on all of these fronts My Food Bag is well-positioned to continue delivering for its customers.

Winter says: “My Food Bag recognises that market conditions will remain challenging in the year ahead.“To counter this, we will invest further for the health and growth of our business, via four key priority areas: further strengthening our brand, continuing to improve convenience, building a seamless customer experience, and fuelling our offer with unique ready-made solutions.“All this ladders up to driving active customer numbers by better delivering to customer lifestyles now and in the future,” says Winter.We are encouraged by the start to FY25, with the first 8 weeks of trading showing overall net sales and active customers (59,009) broadly in line with the prior year and our partnership with the New Zealand Olympic Team having been successfully launched.

The Board expects to continue to pay dividends in FY25.

[winner69]

My base was working from H2 FY23 which was $2m NPAT and then adding back in the savings minus tax of $1.44m, giving me $3.44m NPAT for the 6 months. Add that to H1 Fy24 of $2.5m, the overall NPAT for FY24 would be $5.94m NPAT


Spot on silverblizzard ….well done

[bulltrap]

My base was working from H2 FY23 which was $2m NPAT and then adding back in the savings minus tax of $1.44m, giving me $3.44m NPAT for the 6 months. Add that to H1 Fy24 of $2.5m, the overall NPAT for FY24 would be $5.94m NPAT

Actual NPAT of $6.0 million - right on the money!

[Balance]

Spot on silverblizzard ….well done

Bravo indeed to sb888!

And wonderful to see one of the stocks creating so much angst and negativity on the NZX, MFB, make a positive start to its F25 year.

Long may it continue.

Dis. Not a holder but pleased for holders.

[carrom74]

My base was working from H2 FY23 which was $2m NPAT and then adding back in the savings minus tax of $1.44m, giving me $3.44m NPAT for the 6 months. Add that to H1 Fy24 of $2.5m, the overall NPAT for FY24 would be $5.94m NPAT

Great analysis SB88. I wonder sometimes some of the posters like you…here actually work in the accounts department of some companies 😀.

[bulltrap]

Showing resilient profits and margins through a consumer spending pullback, while so many meal kit operators around the globe are burning cash.

Reduced debt and resuming dividends - more ticks in boxes.

Time for a market re-rate? Upwards this time perhaps!?

[Toddy]

Showing resilient profits and margins through a consumer spending pullback, while so many meal kit operators around the globe are burning cash.

Reduced debt and resuming dividends - more ticks in boxes.

Time for a market re-rate? Upwards this time perhaps!?

But the Company is not growing it's customer base.

[Balance]

Showing resilient profits and margins through a consumer spending pullback, while so many meal kit operators around the globe are burning cash.

Reduced debt and resuming dividends - more ticks in boxes.

Time for a market re-rate? Upwards this time perhaps!?

You first! :p

[bulltrap]

You first! :p

I already got ahead of myself on this one. :t_up:

[Balance]

I already got ahead of myself on this one. :t_up:

He who dares, wins!

Or dies!

[silverblizzard888]

Thanks everyone! A great result by MFB, I wasn't expecting my estimate to be that exact, but pretty pleased it turned out that way. As we expect revenue will be down on prior years due to reduced spending and bargain box taking the front seat. Dividends has resumed with 0.5 cent dividend, which predicts a healthy outlook going forward and debt reduced to $12m, which they will continue to reduce going forward and lower interest expenses. With a market cap of $30m and $6 NPAT, they are currently trading at a PE of 5, which is quite undervalued as I expect them to build on this result in FY25.

My view of FY25 is revenue will continue to drop slightly, but with costs being more stable H1 FY25 should generate a larger profit then the prior year since food cost this year particularly on the vegetable side has been lower than the prior year, customer numbers for the first 2 months for FY25 have largely remained the same and with debt being reduced at a good rate, they could reduce it by another $5m in FY25 to having net debt of $7m.

FY25 Expectation
Revenue $155m - $160m
NPAT $7.5 - $8.5m

[bulltrap]

He who dares, wins!

Or dies!

I've been dying all year, and it was getting really tiresome.

It's just heartening to get some good news coming in today - this one and ERD too.

[Rawz]

Well done Silver. Great call.

Maybe just maybe the active customers have stabilized? If so fair multiple 6-8? So trading at 5x its undervalued

[silverblizzard888]

Well done Silver. Great call.

Maybe just maybe the active customers have stabilized? If so fair multiple 6-8? So trading at 5x its undervalued

Thanks Rawz, so far customer numbers remain stable with efforts by the company to expand their offerings and increase active customers.

Brand expansion:
MADE: There will be an emphasis on ready-made foods
Bargain Box: With this the most popular offering now, it makes sense to expand the recipe choices to keep and entice new customers.
Fresh Start: Break and lunch offerings will be introduced

[percy]

Thanks Rawz, so far customer numbers remain stable with efforts by the company to expand their offerings and increase active customers.

Brand expansion:
MADE: There will be an emphasis on ready-made foods
Bargain Box: With this the most popular offering now, it makes sense to expand the recipe choices to keep and entice new customers.
Fresh Start: Break and lunch offerings will be introduced

Great foresight.

[ralph]

Thanks Rawz, so far customer numbers remain stable with efforts by the company to expand their offerings and increase active customers.

Brand expansion:
MADE: There will be an emphasis on ready-made foods
Bargain Box: With this the most popular offering now, it makes sense to expand the recipe choices to keep and entice new customers.
Fresh Start: Break and lunch offerings will be introduced

Yes great call S B ,glad they are fetching debt down and making a profit in a recession great for a kiwi company happy days with brand expansion as well.
I just hope they do not get bought out now !

[Lego_Man]

To stabilise customer base in these economic times is no mean feat. Winter running a tight ship obviously.

The hard work on efficiency gains/cost savings is done now, it's all about growing the customer base - if they can hang in there for the next 9 months (we are in the eye of the economic storm) i can't see why the stock can't get back to 30c on a 2 year view.

[kiora]

At market cap $30 m? it could be a good fit for WHS?

BT THEN IT MIGHTBUGGER MFB ?

[sb9]

Solid performance and echo my appreciation like most others here abt the outstanding work of SB888, top effort.

[troyvdh]

How many off you are customers.

[RRR]

I am a customer (my food bag) for >6 months now - I pay $152 per week for 4 of us, 4 dinners/week..there is some leftover for lunch next day for one of us...very satisfied

Disc - hold plenty

[tim23]

I am a customer (my food bag) for >6 months now - I pay $152 per week for 4 of us, 4 dinners/week..there is some leftover for lunch next day for one of us...very satisfied

Disc - hold plenty
Gee that’s still $38 per meal seems extravagant to me?

[RRR]

$38 for 4 people...round it to $10 per person..not too cheap but not too expensive either..healthy as well and lots of choices/varieties..
Try it once

[troyvdh]

It almost sounds almost to good to be true...cheers and thanks.
What did you guys have tonight.

[nztx]

At market cap $30 m? it could be a good fit for WHS?

BT THEN IT MIGHTBUGGER MFB ?


Start selling MFB Subs from the WHS Entrance Foyers ? ;)

A variation on WHS's Grocery ambitions & already running a treat - what could possibly go wrong
with the Head Honcho of the Red Sheds headed towards the exit door ? ;)

Must be worth at least 50c a MFB share to the WHS for the opportunity surely ? :)

[clip]

It almost sounds almost to good to be true...cheers and thanks.
What did you guys have tonight.

Not using it currently but have used MFB, hellofresh, bargainbox, woop, other ready made meals, tried them all.
$10 per meal per person isn't bad, and is pretty good for the quality and variety of food you get with MFB. It's miles better than hellofresh. The only gripe we had with MFB was how often we got incorrect ingredients which they now say they are getting 99% correct with the new autopicking machines.

[Baa_Baa]

Gee that’s still $38 per meal seems extravagant to me?

Gee, your maths is pretty poor. It's $152, / 4 (dinners per week) / 4 of them. Plus lunches left over for one of them.

Come back to us with the maths Tim.

[X-men]

Well.. obviously...Tim never cook before 😂

[Lego_Man]

How many off you are customers.

I am. Have tried HelloFresh but MFB is streets ahead in terms of meal choice and produce quality.

I get the mainstream Food Bag now (not Bargain Box) for 3 nights a week with the odd add on. Helps when i need more coffee beans or something and i spot them just before online checkout/confirmation.

[nztx]

Well.. obviously...Tim never cook before ��


probably a quarter baked :)

[carrom74]

Jarden has increased the TP from 25c to 28c

[sunnysleeper11]

Jarden has increased the TP from 25c to 28c
Where can one find their broker reports? Thanks

[Toddy]

Where can one find their broker reports? Thanks

Same. Can you view these on Jarden Direct or receive emails.

[sb9]

Could it break the 16c mark today?

[bottomfeeder]

The world is Topsy Turvey. First Hamas gets rewarded for terrorism, and Theresa Gattung gets an honour in the Kings birthday giveaway.

[beetills]

The world is Topsy Turvey. First Hamas gets rewarded for terrorism, and Theresa Gattung gets an honour in the Kings birthday giveaway.
Did she get out with some goodies like some of them did?????

[carrom74]

Director Carter bought 100000 shares today. Wonder why he bought it today as MFB went ex dividend just yesterday.. Did he just miss the date or something else?. Quantity is still low just 100000 shares.

[nztx]

https://www.nzherald.co.nz/business/theresa-gattung-talks-becoming-a-dame-and-women-in-business-with-paula-bennett-ask-me-anything/QMGQCOUEJVHRBEZZRUEM6PTQUE/

Theresa Gattung talks becoming a Dame and women in business with Paula Bennett - Ask Me Anything



Her career has seen her take on leadership roles at multiple businesses, including co-founding My Food Bag, and she has been a strong advocate for closing the gender gap in business.

[Balance]

https://www.nzherald.co.nz/business/theresa-gattung-talks-becoming-a-dame-and-women-in-business-with-paula-bennett-ask-me-anything/QMGQCOUEJVHRBEZZRUEM6PTQUE/

Theresa Gattung talks becoming a Dame and women in business with Paula Bennett - Ask Me Anything

MFB is a success. Let’s give credit where credit os due.

The IPO has been a disaster but that’s not her fault - the market, especially the 3 ‘foundation’ fund managers who took 20% of the float, was at fault. I recall the late Brian Gaynor warning against investing in the IPO.

[Habits]

Thanks MFB for the healthy dividend received this week nearly 1k for me. SP over 16c and up strongly. Here's to the greedy investors wanting to buy at low prices

[carrom74]

Thanks MFB for the healthy dividend received this week nearly 1k for me. SP over 16c and up strongly. Here's to the greedy investors wanting to buy at low prices

Yeah! Happy to get a good return for the price I paid to get in…

[silverblizzard888]

I can see MFB has already started integrating ready to eat items in its food bag menus, which will appeal to some that don't want to prepare their food from scratch.

[bulltrap]

Chart peeking over the 180-day MA lane in the last couple of days. I take that as confirming the post-IPO downtrend is behind us.

[Toddy]

Chart peeking over the 180-day MA lane in the last couple of days. I take that as confirming the post-IPO downtrend is behind us.

It looks like the seller has returned.

[bulltrap]

It looks like the seller has returned.

Yup, as soon as I open my mouth, a big lone seller appears, and bidders run scared.

It's a jinx!

[Toddy]

Yup, as soon as I open my mouth, a big lone seller appears, and bidders run scared.

It's a jinx!

It's NZ. As soon as the Junior trader who has been given the task of dumping the big bosses position goes on holiday for a week or two we think we see a trend.

But no, they are back at the desk dumping the penny stocks.

[nztx]

Bound to be getting more & more sticky out on the Retail Tucker front, whether deliver to door, or go out to buy.

WHS & other recent reports on robustness of the local goldfish bowl wont be helping with legions hitting the exit
doors for over yonder, another pile getting dumped on their backsides out of a job and all the closures
& business failures happening ;)

How will MFB fare in further hardening times ? the screws can only be brought down on costs so much
but if the volume starts declining, that is bound to take a whole lot extra to replace with new orders,
if it is even achievable in declining times.

[Rawz]

MFB probably fairly valued at these levels. It’s not like they are growing their income.

Only look to have stopped the decline.

[nztx]

MFB probably fairly valued at these levels. It’s not like they are growing their income.

Only look to have stopped the decline.


maybe so, but possibility that might lose traction as the recessionary fog falls lower too :)

[bulltrap]

Some positive media coverage (https://www.stuff.co.nz/money/350323431/are-meal-kits-still-good-option) yesterday:



Bargain Box (https://www.stuff.co.nz/life-style/food-drink/300862328/is-bargain-box-cheaper-than-supermarkets-they-say-yes-and-promise-not-to-raise-prices-for-six-months), owned by My Food Bag, came out on top once again was awarded Canstar Blue’s Most Satisfied Consumers | Meal Kit Delivery Award.

It was the only brand to earn five Stars for Overall Satisfaction and Value for Money from Kiwi consumers. (https://www.stuff.co.nz/business/300883356/my-food-bag-doubles-down-on-bargain-box-offering-in-cost-of-living-crisis)

[Rawz]

MFB SP has taken a bit of a tumble. Chart was starting to look like it was turning around

[sb9]

For what it’s worth, picked up a decent parcel at close today at 13c and doubled my holdings. May go down bit more, but based on their recent numbers and outlook, it’s good price for long term I believe.

[Rawz]

For what it’s worth, picked up a decent parcel at close today at 13c and doubled my holdings. May go down bit more, but based on their recent numbers and outlook, it’s good price for long term I believe.

Good buy. Must be very near the bottom.

Based on the last report it looks like customer numbers have stabilized however they haven’t given $$$ guidance so they must still be a wee bit worried about the economy and customer slippage?

Debt levels are manageable if looking at leverage ratio and ebitda to debt.

[sb9]

Good buy. Must be very near the bottom.

Based on the last report it looks like customer numbers have stabilized however they haven’t given $$$ guidance so they must still be a wee bit worried about the economy and customer slippage?

Debt levels are manageable if looking at leverage ratio and ebitda to debt.

Yeah, similar thoughts. Not sure who’s doing the selling and for what reason. Time will tell.

[Lego_Man]

Yeah, similar thoughts. Not sure who’s doing the selling and for what reason. Time will tell.

It's all retail selling on miniscule volumes.

[stoploss]

It's all retail selling on miniscule volumes.
100,000 seller @ 13.2 this morning , what's big volume if this is miniscule ?

[nztx]

100,000 seller @ 13.2 this morning , what's big volume if this is miniscule ?


the Baconiser need his pocket money out in a hurry now ? ;)

[sb9]

Not much action today, was thinking the low price seller might appear again.

[carrom74]

https://www.nbr.co.nz/investment/hellofresh-falls-behind-my-food-bag-as-revenue-drops-30/

Paywalled- Hello Fresh fall behind My Food Bag as revenue drops by 30%.

Pretty much a David and Goliath story.

[ralph]

https://www.nbr.co.nz/investment/hellofresh-falls-behind-my-food-bag-as-revenue-drops-30/

Paywalled- Hello Fresh fall behind My Food Bag as revenue drops by 30%.

Pretty much a David and Goliath story.

Probably more of a 'kiwi as thing' ,a bit like trademe & ebay

[Lego_Man]

https://www.nbr.co.nz/investment/hellofresh-falls-behind-my-food-bag-as-revenue-drops-30/

Paywalled- Hello Fresh fall behind My Food Bag as revenue drops by 30%.

Pretty much a David and Goliath story.


Interesting, matches up with my anecdotes on quality and execution. Also highlights what a good job MFB have been doing operationally of late.

Potentially opens the way for HelloFresh to exit NZ. Either that or double down and buy MFB. Either way current MFB buyers win.

(discl. long, average 15c)

[carrom74]

Interesting, matches up with my anecdotes on quality and execution. Also highlights what a good job MFB have been doing operationally of late.

Potentially opens the way for HelloFresh to exit NZ. Either that or double down and buy MFB. Either way current MFB buyers win.

(discl. long, average 15c)

Agree- if I read HF”s statements correctly,with all their might they made a partly $1.2 M profit.

Eager to hear more when their ASM is scheduled in August.

[sb9]

https://www.nbr.co.nz/investment/hellofresh-falls-behind-my-food-bag-as-revenue-drops-30/

Paywalled- Hello Fresh fall behind My Food Bag as revenue drops by 30%.

Pretty much a David and Goliath story.

Nice one, can’t wait for ASM in months time to get more color on trading update. In the meantime this week’s CPI number is the one to watch for.

[Dlownz]

Nice one, can’t wait for ASM in months time to get more color on trading update. In the meantime this week’s CPI number is the one to watch for.

I'd believe that with a grain of salt. We all know how well global company's pay tax in nz. The answer is they don't. Make up licencing fees mixed with money moving off shore for someone's wages. Boom not much tax to pay.
If someone has more info I'd like to know. But I don't believe HF has fallen behind MFB

[sb9]

Seem to move around that 15c range, someone pushes it up on small vol and the caps it down on low volume too. Wonder if some games are being played here.

[nztx]

Seem to move around that 15c range, someone pushes it up on small vol and the caps it down on low volume too. Wonder if some games are being played here.


IMO better targets elsewhere to play games with .. this one now has the potential short - mid term bounce prospects of a flat pancake flapping in a gentle Auckland breeze ;)

[kiora]

"My Food Bag recalls sesame products over salmonella fears"

https://www.nzherald.co.nz/business/my-food-bag-recalls-sesame-products-over-salmonella-fears/KGRCXSDU5FHKZO4QJOQLG7M2WI/

[Habits]

There are now so many penny dreadfuls on the NZX, for me that includes MFB as under 20cents and trades in 0.1c movements. I started buying in the low 20 cents range so have lost some $. I feel badly for the new shareholders at listing cheated out of their savings, but I think there is a glimmer of hope now. MFB has survived and back to paying a divvie, could even announce a divvie at H1, slim chance

[sb9]

Watching some Olympics coverage on Sky Open, MFB busy with their new ad featuring Nadia. Good campaign I thought.

[bulltrap]

Watching some Olympics coverage on Sky Open, MFB busy with their new ad featuring Nadia. Good campaign I thought.

Great that she's still involved. Everyone's favourite page of the IPO prospectus (https://investors.myfoodbag.co.nz/DownloadFile.axd?file=Announcements/NZX/20210305/341803.pdf) mentioned:


Nadia has a Brand Ambassador Agreement with My Food Bag which expires in November 2023.


Anyone know if that's been extended?

[Nigelk]

I will have. Usually ads featuring her wouldn't be able to shown after the date of her agreement. If these are new ads, it signals that the relationship has been extended by at least a couple of years - the normal running life of these things