My Food Bag Group (MFB) H2 2025 earnings summary

Executive summary

• FY25 revenue reached NZD 162.1 million with EBITDA of NZD 16.1 million, and net profit after tax was NZD 6.3 million, up 5% year-over-year, reflecting margin improvements and operational efficiencies.

• Free cash flow more than doubled to NZD 7.6 million, supporting debt reduction and dividend payments.

• Operational improvements included enhanced customer offerings, a new shop for one-off purchases, and a redesigned digital experience.

• Employee engagement and retention improved, with turnover at an all-time low of 18% and record levels of internal promotions.

• Active customers increased slightly to 57,000, with higher retention and a shift toward more loyal customer segments.

Financial highlights

• H2 revenue increased 5% year-over-year (normalized), and 1.9% sequentially, with FY25 revenue stable at NZD 162.1 million.

• Contribution margin rose to 23.3%, up from 22.6% in FY24, and gross margin improved to 49.3% from 48.5% year-over-year.

• Net debt reduced by NZD 4.9 million since March 2024, now at NZD 6.9 million, with total debt facilities of NZD 20 million.

• Free cash flow increased to NZD 7.6 million from NZD 3.5 million in FY24.

• Total FY25 dividend declared at $0.015 per share, yielding approximately 11.1% and representing 58% of NPAT.

Outlook and guidance

• FY26 strategy focuses on brand strength, affordability, convenience, personalization, and new customer segments, including further expansion of the shop.

• Continued investment in health/wellness offerings and digital enhancements planned.

• Board expects to maintain dividend payments in FY26.

• Early FY26 shows continued demand growth despite inflationary pressures; cost management remains a priority.