My Food Bag revenue drops, but profit improves

Meal kit business My Food Bag Group's half-year profit has improved over last year's, despite a slight drop in revenue growth.

The food service company's net profit rose 18 percent to nearly $3 million, though revenue was down about 2 percent to $82.2m.

Deliveries were also down 1.5 percent on the year earlier, with the average spend per order down 50 cents to $128, reflecting increasing demand for Bargain Boxes.

"We've continued to protect and grow our core My Food Bag, Fresh Start and Bargain Box brands, while strengthening them with new offerings," chief executive Mark Winter said.

Gross margin also improved one percentage point to 49.8 percent as the company cut costs and streamlined operations.

Winter said active customer numbers stabilised at 61,000, but the cost of living meant customers remained under pressure.

"We have also continued to benefit from productivity improvements made in FY24 including the consolidation of Auckland sites and the investment in pick technology," Winter said.

He said the focus for the rest of the financial year ending in March was to continue paying down debt, with earnings expected to be broadly in line with last year's result.

The company will pay a first-half dividend of just under 1 cent a share (0.65 cps).

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