Latest news with #MarkWinter
RNZ News
22-05-2025
- Business
- RNZ News
Will your My Food Bag investment ever recover?
My Food Bag has reported a 5 percent profit increase in the most recent full year, but shareholders could be waiting a while for shares to return to their initial list price. Photo: RNZ My Food Bag has reported a positive year in its latest update, but shareholders are being told they could have a long wait ahead of them for shares to return to their initial list price. My Food Bag listed on the NZX in 2021, in what it said at the time would be the largest IPO by amount raised since 2014. Shares were issued at $1.85 each, including to many customers. But the price dropped in initial trading and has largely continued to decline from there. Shares were trading for 20c on Thursday afternoon, after chief executive Mark Winter told the market it had lifted its profit 5 percent in the most recent full year. Greg Smith, head of retail at Devon Funds, said the prospect of the share price recovering to anything like its list price was "incredibly remote". "It was a classic private equity exit, which has seen a lot of retail investors lose out. The stock was floated in peak conditions, as lockdowns were in force, and the idea of everyone ordering meal kits on a regular basis reinforcing the hype. The firm actually did deliver on its prospectus forecasts in the early days, but many investors extrapolated a situation that as we know now was only ephemeral," he said. The bulk of the shares sold came from private equity firm Waterman Capital, with smaller parcels from founding shareholders Cecilia and James Robinson and Theresa Gattung. "At under three times earnings (EBITDA) the stock seems very cheap, however investor confidence is pretty shot, and the question is how does the company deliver a sustainable earnings growth path? "Consumer spending pressures will ease at some point, but it has tried to expand overseas and that didn't work, competition in NZ has also intensified. As management also notes they have 'right sized' the business so it would be hard to see the shares ever getting back to former glories." Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene, agreed it would be tough. "Never say never, although it's a long way off. There's no doubt that a lot has happened since they listed, including Covid, high food price inflation and rising interest rates. These factors have certainly hampered demand. "However, with rates starting to fall and people beginning to feel the pressure come off, things might start to turn around for the company, [Thursday's] announcement is an encouraging sign in that direction." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
21-05-2025
- Business
- RNZ News
My Food Bag sees modest lift in bottom line, subscriber numbers
My Food Bag has 57,000 subscribers, a marginal increase of 200 from last year. Photo: Facebook / My Food Bag Listed meal kit company My Food Bag has modestly lifted its bottom line despite a challenging trading environment. Key numbers for the 12 months ended March compared with a year ago: The company's revenue was on par with the prior year, and it stabilised its recent decline by maintaining its subscriber base and paying down debt. It reduced its net debt by $4.9 million to $6.9m. Chief executive Mark Winter said growth was up 5 percent in the second half of the year with promising results for its low-carb and diabetes health offerings. The company has 57,000 subscribers, a marginal increase of 200 from last year. "Our results reflect the positive impact of the initiatives taken to strengthen our customer offering and improve operational efficiency," Winter said. "We're seeing clear signs that these efforts are translating into sustained business performance and renewed growth." The company remained optimistic about the growth potential of its cheaper Bargain Box brand. My Food Bag said in the first eight weeks of the new financial year, demand growth continued, and it was confident in managing cost increases. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
