Shares in Marley Spoon competitor My Food Bag fall after a decline in demand from the 2020 peak
My Food Bag (ASX:MFB) fell by over 10% off the back of its half yearly results.
Despite reporting a $9.4 million profit, which was up nearly 25% from the prior corresponding period, its revenue fell 6.5% compared to the year before.
The company, like its competitor Marley Spoon (ASX:MMM) saw a surge in demand in March 2020 as people were initially confined to their homes.
New Zealand’s lockdown was particularly strict, even banning fast food outlets from opening to hand out takeaway food leaving people with little choice but to cook themselves or rely on services such as My Food Bag.
While Marley Spoon rocketed over 10 times in just over 6 months, My Food Bag only listed in March this year and has never traded above its IPO price.
My Food Bag shares fell to $1.16 this morning, down 10.8% from yesterday’s close and 38% from its IPO price of $1.85 per share.
My Food Bag’s NZX shares however notched up a slight gain of 3% but is also down from its IPO price.
The company still asserted the period was positive declaring a 3 cent per share dividend and reminding shareholders it had expanded recipe choices and launched My Food Bag Kitchen.
It also affirmed its full year guidance which tips $34.2 million in earnings, an 18% improvement year on year.
“These results mark the halfway point of our first full year as a publicly listed company and demonstrate clear progress and the achievement of some important milestones as we grow within New Zealand’s $37 billion retail food sector,” said chairman Tony Carter.
The company’s interim report went into further detail, tipping that the average order value would be higher in the second half of the year.
It also hinted at potential M&A deals, telling shareholders it saw opportunities for “vertical integration”.