By RNZ

Strong sales in the second half of the year have helped put My Food Bag on track to deliver year-on-year profit growth.

The NZX-listed company is forecasting its full-year net profit will be between $6.4 million and $6.8m, up from $6.3m in the 2025 financial year.

Revenue is tipped to grow 4.9% on the previous year, with the level of retained customers in the meal-kit business up year-on-year, My Food Bag chief executive Mark Winter said.

“We’ve prioritised providing our customers with greater flexibility, offering them more convenience and reiterating the value of our offering,” he said.

Winter said My Food Bag has expanded in the past year to target more health-conscious customers, and now offers a high-protein option, a diabetes plan and meals tailored to those taking weight-loss drugs.

Rising cost of ingredients a headwind

My Food Bag chief executive Mark Winter.

Ingredient price inflation is still a challenge for My Food Bag, Winter said, with food prices generally up 4.5% in the year to February, according to Stats NZ.

But Winter said the company has managed to improve its gross margin for the second half, compared to the prior year.

“We’ve always prioritised what we can do internally to take unnecessary cost out that the customer doesn’t value and that includes at assembly sites around productivity.

“We invested a substantial amount of money a couple of years ago in implementing light automation, so initiatives like that have allowed us to partially offset the food price inflation costs that we’re seeing come through.”

With the Middle East conflict generating an uncertain outlook for inflation, Winter said the company is keeping a close eye on developments and staying in contact with suppliers.

The company expects to release its confirmed full-year results in May.

– RNZ