My Food Bag profits skyrocket to $20 million

My Food Bag profits go up to $20 million
My Food Bag profits go up to $20 million Photo credit: Supplied


Strong demand from people staying at home boosted meal kit delivery business My Food Bag's full-year profit, which jumped more than eightfold.

Key numbers for the 12 months ended March compared to a year ago:

  • Net profit $20m vs $2.4m
  • Revenue $194m vs $190.7m
  • Underlying earnings $34.2m vs $15.3m
  • Final dividend 4 cents a share

Company chair Tony Carter said My Food Bag navigated through a number of economic challenges, such as labour shortages and supply chain pressures.

"These were alleviated via selective price increases and tight cost management, as well as working closely with suppliers to adjust customer offers as required and micro-management to navigate labour uncertainty, particularly in Q4," he said.

My Food Bag said it delivered more than 18 million meals across the year, with an average order value of $126.60, which was up $2.23 from 2021.

Carter said despite the challenges, its innovation programme delivered strong results in 2022.

"In July, the team introduced My Food Bag Kitchen, a curated collection of food solutions for different meal occasions. By the end of FY22, we have been achieving attachment rates of 14 percent and average order value of $21, which puts us in a good place as we scale the initial pilot offering in FY23," he said.

Looking ahead, My Food Bag chief executive Kevin Bowler said the business expected ongoing uncertainty amid the challenging economic environment.

But he said there were clear opportunities for growth, and the company had a pipeline of initiatives for it to take a greater share of the country's $37 billion retail food sector.

"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 [My Food Bag] Kitchen while investing in the resilience of our operating environment," Bowler said.

My Food Bag said it would provide further guidance at its shareholders' meeting in August.