My Food Bag Group (MFB) H1 2026 earnings summary

Executive summary

• Revenue grew 3.8% year-over-year to $85.4 million for the half-year to 30 September 2025, with EBITDA of $7.2 million and net profit after tax of $2.9 million, broadly in line with the prior year.

• Active customers increased to 61,300 from 60,100 a year ago, with higher order frequency and average order value rising to $130.9.

• Growth was driven by new product launches, especially health-focused meal kits like the Diabetes Plan and GLP-1 Support, and expansion into gifting and care packages.

• Strategic focus remains on expanding active customers, reinforcing brand leadership, and growing into the broader online food category.

• Interim dividend of 0.75 cent per share declared, fully imputed, with a dividend reinvestment plan available.

Financial highlights

• Gross margin was 48.5%, down from 49.8% year-over-year, reflecting 4.1% food price inflation.

• Contribution margin declined to 21.9%, mainly due to higher distribution and labor costs.

• EBITDA margin was 8.4% of revenue.

• Net debt reduced to $5.5 million, reflecting strong cash generation and disciplined capital management.

• Free cash flow was $3.1 million, supporting both dividend payment and further debt reduction.

Outlook and guidance

• Year-to-date revenue growth accelerated to 4.6% post-balance date, with positive gross margin impact from recent price adjustments.

• Full-year profitability is expected to be broadly in line with the prior year, despite ongoing economic headwinds.

• CapEx requirements are forecast to remain low, with continued focus on debt reduction.

• Continued ingredient cost pressures anticipated, but strategic initiatives position the business well for the remainder of FY26.

• Board expects to pay a final FY26 dividend.