MFB - My Food Bag

[winner (n)]

The biggest impact on margins last few years has been Assembly and Distribution costs

Average order has remained pretty consistent around $130 but Assembly and Distribution cost per order has increased from about $26 to $35

They wre excited with their new automation stuff around picking orders so maybe we have to assume that the increases have been in delivery costs

[winner (n)]

Infometrics report Foodstuffs input costs are up 2.4% from Dec24 ... but didn't move since November

My MFB price watch suggests MFB haven't increased prices for a while ... maybe putting a little less in the bags

Global Food Index down again in December. That implies cost relief foe MFB later this year

Wish share price would break through 25

[Habitz]

F&B still going strong....

"Black Friday spending down blow to retail recovery
Worldline NZ figures showed retail spending in New Zealand during December reached $4.702 billion, down 0.2% on the same month last year.
However, food and drink spending rose 4.4% in December.
Proffit said the figures showed a tough retailing environment over the last and busy month of the year but revealed some notable shifts in shopping behaviour.
"There was more spending at food and liquor stores in Worldline's network across December, which is consistent with generally higher food prices and people prioritising the essentials in their budgets."

From NZH

[Basil]

Small top up for me at the close at $0.24.  Still a very small position for me.

[Habitz]

Your confidence must be growing that 2026 could be a very positive year for the company.

2025 overall was mediocre unless picked the dip. There is now 100 percent gains plus dividends since 2 years lows reached in December 2023. Could be an outside chance of 100 percent gain in 2026.

[Basil]

I've been reading that about half of all fixed term mortgages have come up for renewal in recent months or coming up for renewal shortly.  2% savings are common and on an average circa $400K mortgage that's $8,000 a year or about $154 per week.  Together with an improving economy I think that's a decent tailwind for the company over the next few years.  They're determined to build more resiliency into their business model by eliminating all debt.  I like that and the fact they've shown decent level's of resiliency already despite the hideously long recession in recent years.

[Auto Rower]

Yes its frightening how long this downturn lasted ,but the fact you have stated that during this recession they have cut debt and still been paying a large dividend is auspicious in the least .

[Basil]

Its not all peaches and cream though.  I share Lorriana's concerns about the number of free performance rights being issued to senior management.  I guess that keeps them motivated but they shouldn't need motivation as they're already well paid for a small company like this.

[winner (n)]

I've been reading that about half of all fixed term mortgages have come up for renewal in recent months or coming up for renewal shortly.  2% savings are common and on an average circa $400K mortgage that's $8,000 a year or about $154 per week.  Together with an improving economy I think that's a decent tailwind for the company over the next few years.  They're determined to build more resiliency into their business model by eliminating all debt.  I like that and the fact they've shown decent level's of resiliency already despite the hideously long recession in recent years.

There is some thinking/research around when homeowners feel better off (like you have indicated) soem of the extra discretionary spend goes on eating and drinking out as well as having meals delivered (from restaurants/takeaways)

The research bit is that when restaurant/takeawys sales grow (solidly) MFB et all sales tend to decline  or remain flat at best

Why cook at home when you can go out and have others cook for you

[Auto Rower]

Its not all peaches and cream though.  I share Lorriana's concerns about the number of free performance rights being issued to senior management.  I guess that keeps them motivated but they shouldn't need motivation as they're already well paid for a small company like this.

Shareholder have to learn to share ,but yes probably to many incentives sometimes, not always .
 Do they have to reach quotas to achieve these performance rights

[Basil]

Why cook at home when you can go out and have others cook for you

You're quite right, Kiwi's love their takeaway's.  That'll grow too from more disposable income and you're right, some people will substitute takeaways for home cooking.  Others will buy more time by having some of their weekly supermarket shop delivered to them from MFB.  Be interesting to see how this plays out but there's no doubt in my mind they are on track to be debt free sometime around the fourth quarter of next year.  Meaningful interest savings as well as more flexibility to increase dividends.

Shareholder have to learn to share ,but yes probably to many incentives sometimes, not always .
 Do they have to reach quotas to achieve these performance rights

They're issued for free but (from memory), there are some KPI targets that have to be met but the company is very coy on explaining what those targets are.  I'd like to see a decent share price hurdle having to be met such as here are your performance rights and they can be exercised by payment of say 40 CPS in three years time.

[winner (n)]

Its not all peaches and cream though.  I share Lorriana's concerns about the number of free performance rights being issued to senior management.  I guess that keeps them motivated but they shouldn't need motivation as they're already well paid for a small company like this.

51 paid over $100,000 in AR2025

How many employees in total?

About 200 I'm led to believe

[Auto Rower]

%1 paid over $100,000 in AR2025

How many employees in total?

About 200 I'm led to believe

No offence winner could you put that in layman's terms for me please ,are you saying two people i.e. 1% of 200 employees
 I used to be very delusory of k p i Incentives but came around to them in the end & its good business practice to keep the details secretive for many reasons .

[winner (n)]

No offence winner could you put that in layman's terms for me please ,are you saying two people i.e. 1% of 200 employees
 I used to be very delusory of k p i Incentives but came around to them in the end & its good business practice to keep the details secretive for many reasons .

Sorry my bad ...it's 51 employees over $100,000

[Auto Rower]

As I would expect thankyou winner