My Food Bag Group (MFB) H1 2025 earnings summary

Executive summary

• Revenue for FY25 H1 was $82.2m, down 1.9% year-over-year, while NPAT increased to $3.0m from $2.5m and EBITDA rose 5.7% to $7.8m.

• Active customers totaled 60,100 at 30 September 2024, up from 56,800 at FY24 year-end but slightly down from 61,600 a year earlier.

• Interim dividend of 0.65cps declared, fully imputed and payable in December.

• Investments included product enhancements, UX redesign, new delivery options, and the launch of My Food Bag Shop for one-off purchases.

• Productivity improvements and operational excellence programs continued to benefit operations.

Financial highlights

• Gross margin improved to 49.8% (up from 47.9% YoY), and contribution margin rose to 24.1% (up from 22.0% YoY).

• EBITDA margin was 9.5% (EBITDA of $7.8m on $82.2m revenue).

• Net debt reduced to $9.7m from $11.8m at FY24 year-end, with surplus cash used to pay down debt.

• Operating cash flow increased to $6.3m from $4.9m in H1 FY24.

• Average order value was $128.0, down from $128.50 year-over-year, mainly due to higher Bargain Box mix and discounting.

Outlook and guidance

• Trading expected to remain broadly in line with prior year trends for H2 FY25 amid challenging market conditions.

• Focus remains on customer experience improvements, conversion, loyalty, and long-term growth as economic conditions improve.

• Stabilised active customer base and deliveries provide a platform for future growth.

• Capex forecast to be lower than prior year’s $3.5m.

• Board expects to pay a final FY25 dividend.