Table of Contents
What changed
Revenue was essentially flat at $194.0m, up 1.7% on FY21's $190.7m, marking a modest cycling of the 2020 demand spike. Earnings leverage was far more pronounced: PBT rose 210.0% to $27.8m and company-reported Pro forma EBITDA1 rose 18.1% to $34.2m. Statutory NPAT jumped 719.3% to $20.0m, but this is largely optical — the effective tax rate fell from 72.8% in FY21 to 28.1% in FY22, so PBT is the cleaner operating read. Operating cash flow rose 22.7% to $29.5m, cash climbed to $5.9m and borrowings fell to $3.4m, moving the group from ~$14.3m net debt to a small net cash position of ~$2.5m. A 4.0cps final dividend was declared.
What matters
- PBT vs NPAT divergence is a tax story, not a one-off gain. The 509pp gap between PBT (+210.0%) and NPAT (+719.3%) growth is explained by the FY21 effective tax rate of 72.8% normalising to 28.1%. There is no disclosed discontinued operation or disposal item. Using PBT as the operating benchmark, the business roughly tripled profit on a near-flat revenue line — a genuine margin expansion story.
- Balance sheet de-risked materially. Gross borrowings fell from $15.9m to $3.4m and equity rose 23.5% to $66.9m, pushing ROE from 4.5% to 29.9%. The swing to net cash gives headroom against the flagged second-half cost pressures.
- Inventory build stands out. Inventory days rose from 2.3 to 4.9, more than doubling the stock position to $2.6m. For a meal-kit operator this is small in absolute terms but directionally notable given disclosed input-cost inflation.
Expectations
No forward targets, guidance or forward-work position were supplied, so there is no explicit yardstick to judge against. On seasonality, HY22 accounted for 50.8% of FY22 revenue but only 46.8% of EBITDA, 47.2% of NPAT and 42.3% of operating cash flow, so the second half was the stronger earnings and cash period despite the company flagging inflationary pressure on input costs and health-and-safety spend in H2. The release does support the narrative that margin and cash performance improved into the second half; it does not support any specific FY23 run-rate read given that H2 revenue of ~$95.5m was slightly below H1.
Quality of result
The operating result looks reasonably durable. Operating cash flow of $29.5m converts to 86.4% of Pro forma EBITDA (vs 83.1% prior), capex was modest at $2.9m (1.5% of revenue), and pre-lease free cash flow of $26.7m covers the declared dividend comfortably (pre-lease FCF payout of ~37.5%). The working-capital position is not a material tailwind — receivable days are effectively nil (cash-up-front model) and inventories consumed a small amount of cash. The main caveats are (i) the headline NPAT growth is flattered by tax normalisation and should not be extrapolated, and (ii) EBITDA1 is a non-statutory measure with no full reconciliation included in the supplied extract. Cash conversion did not deteriorate.
Unresolved
- The 4.0cps disclosed appears to be the final dividend only; the full-period payout total is not confirmed in the supplied data.
- No segment, channel or active-customer detail was extracted for FY22, so the mix between brands and the driver of the 18.1% EBITDA1 lift (price, mix, cost-out or volume) cannot be isolated.
- Gross margin is not disclosed, so the degree to which the flagged input-cost inflation was passed through to customers is unclear.
- No FY23 guidance, stated targets or forward-work backlog were provided, leaving run-rate expectations dependent on external context.
- The EBITDA1 bridge from statutory earnings is referenced but not reconciled in the excerpt, and no customer or supplier concentration is disclosed.
This briefing cannot assess valuation, competitive positioning against listed meal-kit peers, or the sustainability of the 18.1% EBITDA1 uplift in the face of continuing input-cost inflation.
Key metrics
| Metric | FY22 | FY21 | Change |
|---|---|---|---|
| Revenue | $194.0m | $190.7m | +1.7% ↑ |
| Net profit after tax | $20.0m | $2.4m | +719.3% ↑ |
| Net cash inflow from operating activities | $29.5m | $24.1m | +22.7% ↑ |
| Final dividend per share | 4.0c | — | — |
| Profit before tax | $27.8m | $9.0m | +210.0% ↑ |
| Cash and cash equivalents | $5.9m | $1.6m | +269.8% ↑ |
| Total assets | $105.7m | $102.4m | +3.2% ↑ |
Reference: annolyse.ai/briefings/mfb-fy22
Analytical metrics
| Metric | FY22 | FY21 | Context |
|---|---|---|---|
| PBT growth | +210.0% | — | cleaner earnings measure |
| Effective tax rate | 28.1% | 72.8% | — |
| OCF / EBITDA (cash conversion) | 86.4% | 83.1% | stable |
| FCF pre-lease | $26.7m | $21.1m | +$5.6m |
| FCF / NPAT | 133.2% | 863.4% | complementary conversion metric |
| Capex % revenue | 1.5% | 1.6% | — |
| Capex | −$2.9m | −$3.0m | +$0.1m |
| Debtor days | 0.4 | 0.4 | +0.1 days |
| Inventory days | 4.9 | 2.3 | +2.6 days |
| Trade debtors | $0.2m | $0.2m | +$0.0m |
| Net debt | −$2.5m | $14.3m | −$16.8m |
| Net debt / EBITDA | -0.07x | 0.49x | Strengthening |
| Gross borrowings | $3.4m | −$15.9m | +$19.3m |
| Payout ratio vs NPAT | 50.0% | — | — |
| Payout ratio vs FCF pre-lease | 37.5% | — | covered |
| ROE (annualised) | 29.9% | 4.5% | Strengthening |
| HY22 share of FY22 revenue | 50.8% | — | Other half was 49.2% |
| HY22 share of FY22 EBITDA | 46.8% | — | Other half was 53.2% |
| HY22 share of FY22 NPAT | 47.2% | — | Other half was 52.8% |
| Profit from continuing operations | $20.0m | — | — |
Reference: annolyse.ai/briefings/mfb-fy22
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX/ASX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.