- Youfoodz (YFZ) has reported on a successful first quarter since officially listing on the ASX on December 7
- The Australian meal delivery service saw a 25.4 per cent increase in net revenue to $36.7 million compared to the December 2019 quarter
- This increase was fuelled by the production and delivery of more than 4.8 million meals over the quarter
- Importantly, marketing efforts led to the addition of almost 42,700 new customers which represents a 116.1 per cent increase on the prior corresponding period
- Youfoodz new facility is also progressing well and is expected to be operational and financially contribute from the 2023 financial year
- The company reported $910,000 on operating activities — most of which was allocated to product manufacturing and operating costs
- And, following its successful $70 million IPO, Youfoodz ended the period with just under $39 million in cash
- Youfoodz ended the day trading 16.1 per cent higher at $1.16
Youfoodz (YFZ) has posted its first quarterly update since officially listing on the ASX on December 7.
Youfoodz is an Australian meal service brand that offers home delivery nation-wide. Its meals, snacks and beverages can be found at over 4000 stores across the country including Coles, Woolworths, Aldi, IGA, 7 Eleven, Goodlife Health Clubs, FoodWorks, and more.
In its initial public offering (IPO), Youfoodz raised $70 million at $1.50 per share.
"In this first quarterly update since our IPO, Youfoodz is very pleased to report continued strong growth for the business," CEO Lance Giles said.
Financial growth and performance
Youfoodz showed consistent growth during the quarter despite COVID-19 impacts. The pandemic caused some volatility in the demand for business-to-consumer services (B2C) and the cost fluctuations of raw materials and services.
The company reported a 25.4 per cent increase in net revenue to $36.7 million compared to the prior corresponding period (being the December 2019 quarter). This increase was generated by the production and delivery of over 4.8 million meals — a 28 per cent increase pcp.
In terms of revenue for the first half of the 2021 financial year, Youfoodz has reported $73.6 million in net revenue which is a 15.6 per cent pcp growth.
"During the period, we implemented a range of operational and marketing initiatives that have not only supported growth during the quarter but also ideally position the business as we aim to continually improve the way we service our existing customers and attract new customers," Lance said.
Significantly, marketing efforts led to the addition of 42,690 new customers — a staggering 116.1 per cent increase pcp.
While B2C, or home delivery sales, contributed significantly to the growth, the business-to-business (B2B) channel continued to face challenges. Youfoodz believes this is due to COVID-19's ongoing impact on customer behaviour and shopping trends. As a result, gross revenue through its B2B wholesale channels dropped 2.5 per cent over the quarter.
However, the meal delivery company did increase the number of physical stores by 30.2 per cent to 3406. A large contributor to this was the roll-out ranging of meals to a new convenience store customer across Australia. Youfoodz expects to
see revenues contributed by this new partner channel to increase as the in-store menu range broadens.
Youfoodz claims the construction of its new facility is progressing well. The new facility will replace the company's existing three sites in Brisbane and is expected to deliver significant financial benefits. The facility will also bring improved work flows, automation and a single site location. The site will be operational from FY23.
In terms of cash outflow, Youfoodz reported $910,000 on operating activities — most of which was allocated to product manufacturing and operating costs.
At the end of the period, Youfoodz had about $38.9 million in cash.
Youfoodz ended the day trading 16.1 per cent higher at $1.16 at market close.