My Food Bag said debt reduction was an ongoing priority/ (File photo) Photo:
Meal-kit company My Food Bag posted a flat half-year profit as it paid down debt, while revenue increased as it picked up more customers.
Key numbers for the half year ended 30th September compared with a year ago:
- Net profit $2.9m vs $3.0m
- Revenue $85.4m vs $82.2m
- Underlying Profit $7.2m vs $7.8m
- Gross margin 48.5% vs 49.8%
- Interim dividend 0.75 cents per share
My Food Bag chair Tony Carter said debt reduction remained an ongoing priority.
"We have successfully lowered net debt over the past 12 months from $9.7m to $5.5m at the end of September 2025," he said.
The company delivered a slight increase in revenue at $85.4 million, but gross margins fell by 1.4 percent as the company adjusted prices more slowly than the rise in food price inflation, which it said was 4.1 percent for the year ending September 2025.
Carter said the company focused on product quality and customer satisfaction while managing cost pressures carefully.
"While the gross margin reduced year-on-year, it remained relatively stable compared to the second half of FY25," he said.
Challenging second half expected
Chief executive Mark Winter said the company continued to diversify the offerings of its core meal kits via its My Food Bag and Bargain Box brands, and would expand into new categories.
"Beyond meal kits, we are leveraging the strength of the My Food Bag brand to expand into new categories and occasions, with our ready-made meal range and care package and gift solutions through the My Food Bag Shop attracting incremental active customers," he said.
Winter expected market conditions to remain challenging throughout the second half of the 2026 financial year, and expected full-year profit to be broadly in line with its 2025 result of $6.3m.
"We are continuing to focus on product quality, customer experience, and operational efficiency, and we are well positioned to continue to grow and deliver to thousands of Kiwi households each week," Winter said.
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