New Zealand based meal kit delivery company My Food Bag will delist from the ASX as it seeks to reduce costs.
My Food Bag was founded in Aotearoa New Zealand in 2013, the meal kit delivery company was listed on both the NZX and ASX in 2021. The company revealed that annual profit is down 61 percent due to demand dropping amid inflationary pressures and other economic issues in Aotearoa New Zealand.
“The current economic environment and inflationary pressures have presented challenges for the business and we have adapted to ensure we will deliver during a tougher 2023 calendar year,” said My Food Bag CEO Mark Winter.
With 60,000 active customers as of March, My Food Bag is looking to reduce costs and return to profitability by delisting from the ASX, which will reduce compliance costs, as well as reducing its workforce by 10 percent.
The company’s profit fell to $7.9 million NZD in the year to the end of March, down from $20 million in 2022, as meal kit deliveries dropped 12 percent.
My Food Bag’s share price is down 88 per cent since listing in March 2021 and the stock has lost 72 percent of its value in the past year.
Its lower price option ‘Bargain Box’ range increased deliveries 1.6 percent for the year as the company has invested in marketing the range and offering a price freeze for the next six months amid increasing food prices in the country. “We’re focused around Bargain Box affordability, and we’ve invested to promote Bargain Box, recognising it as well-placed to grow during the current economic conditions,” said Winter.
On whats ahead for the company, Winter says they will be focusing on efficiency. “We are a profitable business with a strong brand and customer offer,” said Winter. “In the next financial year, our intent is to stabilise sales and execute a disciplined plan to deliver sustainable active customer growth, focused on driving our portfolio of brands, growing choice and flexibility, as well as operational efficiencies.”
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