Subscription-based meal kit business My Food Bag Group will delist from the Australian Stock Exchange (ASX) after its profits slump.
For the year to March 31, sales fell 9.4 per cent to $175.7 million while tax-paid profit declined 60.8 per cent to $7.9 million.
The company has increased its investments in Bargain Box – a meal kit delivery service – in response to softening consumer demand while growing its active customer base by 12 per cent.
CEO of My Food Bag, Mark Winter, said the business will continue to adapt to the current climate and strengthen its position.
“We are a profitable business with a strong brand and customer offer. In the next financial year, our intent is to stabilise sales and execute a disciplined plan to deliver sustainable active customer growth, focused on driving our portfolio of brands, growing choice and flexibility, as well as operational efficiencies.”
To further reduce costs, the business has culled about 10 per cent of roles across its non-operational teams and has commenced delisting from the ASX to reduce compliance costs.
Tony Carter, chair of My Food Bag, said delisting from the ASX will save the business money and the cost of being listed “outweighs the benefits”.
“Inflationary pressure on households and low consumer confidence have resulted in subdued demand, driving diseconomies of scale within the business.
“As a result, we have undertaken a reset of our business spanning our leadership, supply chain and brand positioning, all focused on strengthening My Food Bag to deliver.”
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