MFB - My Food Bag

[Balance]

It used to be that when Milford bought into a stock, many (including me) would consider that as a good sign and most likely, invest too.

Those days are long gone, it seems with Milford being the only volume buyer supporting MFB's sagging share price.

http://nzx-prod-s7fsd7f98s.s3-websit...823/359214.pdf

[Dlownz]

It used to be that when Milford bought into a stock, many (including me) would consider that as a good sign and most likely, invest too.

Those days are long gone, it seems with Milford being the only volume buyer supporting MFB's sagging share price.

http://nzx-prod-s7fsd7f98s.s3-websit...823/359214.pdf

Well they are not buying it for my aggressive fund so I'm happy

[Balance]

Well they are not buying it for my aggressive fund so I'm happy

Well, they seem to be using new investors’ funds to support the share price after becoming one of the 3 institutions which ‘cornered’ 20% of the IPO stock at $1.85.

[Sideshow Bob]

My Food Bag achieves record earnings; confirms dividend - NZX, New Zealand’s Exchange

My Food Bag is pleased to release its half year results for the six months ended 30 September 2021. These results demonstrate a strong first half of the year for the business, underpinned by a combination of operational achievements and further product innovation.
Highlights include:

• NPAT of $9.4 million, up 24.6% on H1 FY21
• EBITDA of $16.0 million, up 11.6% on H1 FY21
• Active customers up 3.3% compared to the end of H1 FY21
• High value active customers up 3.1% year-on-year
• Revenue of $98.4 million, down 6.5% year-on-year due to 2020 nationwide lockdown spike
• Launch of My Food Bag Kitchen, the business’ first significant step outside of weeknight meals
• Expanded recipe choice to include Bargain Box and Fresh Start brands
• Fully imputed interim dividend of 3.0 cents per share declared

Tony Carter, Chairman of My Food Bag says “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.

[winner69]

Bob ...you are meant to highlight the Record earnings bit

[artemis]

MFB has a supply chain advantage in that its future demand is locked and paid for. Plenty of companies would give their eye teeth.

[Sideshow Bob]

Bob ...you are meant to highlight the Record earnings bit

My apologies Winner - fixed now.

[nztx]

Bob ...you are meant to highlight the Record earnings bit

Record Earnings as compared against what ?


Are IPO holders still deep under water .. reaching for their snorkels to see what is going on ?

[Maxtrade]

Record Earnings as compared against what ?


Are IPO holders still deep under water .. reaching for their snorkels to see what is going on ?

Makes you wonder where there market seems fair value for this stock. Analysts way over estimated, such as Jarden etc. Still no support or volume buyers at these levels 1.15. Does it need to settle in sub $1 for any real interest to be sparked. Bit of an anomaly that the SP has declined so much from the IPO. The company does have a lot of competition in the space which have obviously hindered, such as Hello Fresh etc etc. Also My Food Bag isn't the cheapest option, so with the cost of living increasing maybe investors are concerned consumers will second guess weather to spend that much extra for the convenience of My food bags model. Thats the only real sense why the share has not found any real support since it's launch.

[Beagle]

Looking at the chart since it listed there are some early indications it is starting to find support at around the current level ~ $1.20.
Annualizing the recent half year result gives NPAT of 18.8m on 242.4m shares = eps of 7.75 cps and has them on a forward PE of 15.5.
I would argue this is the price they should have floated at.
For mine, Its very early days. I'd need to see more evidence its built a base at around this price before deciding if there is genuine merit in their business model and it really can grow from here over time or whether Covid is giving this business model an artificial boost, (which I suspect is the case).