Investors are digesting My Food Bag’s performance data – but Stuff is still feeding off Simon Henry’s remarks about Nadia Lim

Stuff business writer John Anthony was still focused on businessman Simon Henry’s widely reported remarks about My Food Bag co-founder Nadia Lim, a day after the company posted its latest annual results.

His report on Saturday began with news that – according to its chief executive – My Food Bag’s contact centre had been “inundated” with thousands of messages of support for Nadia Lim after “rich lister” Simon Henry made “insulting” comments about her.

Anthony mentioned an earlier Stuff report that the meal kit company had reported a $20 million after tax profit for the year to March 30, up from $2.4m a year earlier.

He noted that this result came two weeks after Henry, the boss of chemical company DGL Group, criticised My Food Bag for including a photo of Lim in its prospectus.

In an interview with the NBR Henry described the celebrity chef as “a little bit of Eurasian fluff” and accused her of “showing some cleavage” and “showing off her sensuality” to sell My Food Bag’s offer.

My Food Bag chief executive Kevin Bowler said Henry’s comments were “insulting and ridiculous”, but ultimately they were a matter for DGL.

“I think he was so far out of touch with where contemporary thinking is that it just doesn’t bear commenting on any further,” Bowler said.

Henry’s remarks can have had no bearing on My Food Bag’s results.

They did provide Stuff editors with a pretext for again running the photo of Nadia Lim in My Food Bag’s prospectus which had been the subject of Simon Henry’s highly controversial observations.

Lim serves as a brand ambassador for the company, but she hasn’t been on its board for more than six years.

Anthony got back to the business in today’s challenging climate by reporting Bowler as saying the company had increased some prices in April but was trying not to pass on all cost increases to customers.

This was followed by another reference to the prospectus photo:

People were well aware of Lim’s role in the business, and it made sense that she was featured in the prospectus, he said.

And then Anthony got around to dishing up some figures that matter (or should) to investors:

My Food Bag’s share price has lost half its value since it listed just over a year ago at $1.85 a share.

On Friday its share price recovered some ground, trading up 8% to close at 85 cents.

The company said its annual result was in line with forecasts provided prior to listing in 2021.

Bowler said My Food Bag was a good yield stock.

“At the current prices it continues to be extremely attractive.”

He said management was focused on delivering a quality product, demonstrating growth in the business and achieving its forecasts.

“We’ve got a long way to go to get back to what we think the business is really valued at.”  

Anthony referenced a recent research note by Forsyth Barr analysts who said at current levels My Food Bag’s dividend yield appeared attractive, but the competitive environment may limit its potential for growth.

The previous day, in a report by Melanie Carol, Stuff reported My Food Bag’s profit for 2021 included a $14.1m deduction for one-off transaction costs,

Revenue of $194m was up $3.3m on a year earlier, and was $7.6m more than forecast in its prospectus.

Pre-tax profit of $34.2m was up 19 per cent on the previous year.

Shareholders would be paid a dividend of 4 cents a share on June 16, bringing total dividends for the year to 7c a share.

Investors by now will have digested the numbers provided by Stuff and a range of other sources.

On the NZX today shares began trading at 0.87c but were 0.83c when Point of Order checked in mid afternoon.

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