New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>My Food Bag’s (MFB) FY23 result was broadly in line with our expectations, featuring a significant reduction in normalised NPAT to NZ$7.9m from NZ$20.1m in FY22 (~-61%).</li><li>MFB has pointed to a difficult trading environment with pressures on households as the key driver of this reduction.</li><li>Key factors in the result were (1) lower active customers, including higher churn through the year, (2) lower delivery volumes including a reduction in average frequency, (3) continued adverse margin impact from product mix towards Bargain Box, and (4) capex from the pick to light investment and lower operating cash flow driving higher debt utilisation (although net leverage remains supportable at ~1x pre-IFRS 16 EBITDA).</li></ul>

My Food Bag’s (MFB) FY23 result was broadly in line with our expectations, featuring a significant reduction in normalised NPAT to NZ$7.9m from NZ$20.1m in FY22 (~-61%).MFB has pointed to a difficult trading environment with pressures on households as the key driver of this reduction.Key factors in the result were (1) lower active customers, including higher churn through the year, (2) lower delivery volumes including a reduction in average frequency, (3) continued adverse margin impact from product mix towards Bargain Box, and (4) capex from the pick to light investment and lower operating cash flow driving higher debt utilisation (although net leverage remains supportable at ~1x pre-IFRS 16 EBITDA).

My Food Bag (MFB): FY23 Result – Initial Impressions

My Food Bag Group Ltd

My Food Bag (MFB): FY23 Result – Initial Impressions