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- Australian meal delivery service Youfoodz (YFZ) releases its preliminary FY21 results which reveal growth across most areas
- Gross revenue was up 18.8 per cent over the prior corresponding period to $203.8 million while net revenue was up 14.9 per cent to $146.4 million
- Customer acquisitions were up 34.9 per cent to more than 195,600 while business-to-consumer orders were up 27.5 per cent to more than 1.4 million
- Unfortunately, business-to-business gross revenue was down due to localised lockdowns, however results improved in Q4
- Shares in Youfoodz closed up a slight 0.55 per cent at 91.5 cents on August 24
Australian meal delivery service Youfoodz (YFZ) has released its preliminary FY21 results which reveal growth across most areas.
Gross revenue was up 18.8 per cent over the prior corresponding period (pcp) to $203.8 million while net revenue was up 14.9 per cent over the pcp to $146.4 million.
Youfoodz credits this increase to the rapid growth in the business-to-consumer (B2C) sector. However, this was partially offset by a decline in the company’s business-to-business (b2B) sector.
Furthermore, Youfoodz delivered earnings before interest, tax, depreciation and amortisation (EBITDA) of $1 million for FY21, compared with an EBITDA loss of $2.8 million in FY20.
Business-to-consumer performance
Home delivery
B2C orders were up 27.5 per cent over the pcp to 1,406,462 while active B2C customers were up 28.1 per cent from the pcp to 344,210.
Additionally, new customer acquisitions were up 34.9 per cent to 195,625.
All of these increases supported strong revenue which was up 34.9 per cent on the pcp to $136.7 million.
Furthermore, Youfoodz introduced next day delivery in NSW, subscription service on app as well as menu cycling and new menu releases.
Business-to-business performance
Wholesale
Due to uncertainty surrounding lockdowns, gross revenue in Youfoodz’s B2B sector declined 4.4 per cent to $67.2 million while net revenue decreased 10.5 per cent to $41.1 million.
However, during Q4 gross revenue was up 7.2 per cent over the pcp to $16.2 million and up 3.9 per cent over Q3.
Acquisition by HelloFresh
In mid-July, Youfoodz announced it had entered a binding scheme implementation deed for HelloFresh to acquire 100 per cent of its share capital for $125.3 million.
Further details of the transaction remain subject to a shareholder vote with a virtual scheme meeting to be held in early October.
CEO Lance Giles commented on the results.
“It is pleasing to see the business deliver strong growth for FY2021. B2C has performed well, delivering a significant uplift in order volumes and revenue vs pcp,” Mr Giles said.
“Our B2B business, which experienced challenging trading conditions during much of FY21, saw an improvement in order volumes and revenues during Q4 FY2021.”
“Looking ahead, we continue to see significant tailwinds for the ready-made meal sector in Australia, with Youfoodz playing a leading role in driving ongoing product innovation, customer service and growth.”
Outlook
For FY22, intends to continue its investment in marketing to drive new customer acquisitions and expand the B2B sales team to capture further market share.
Shares in Youfoodz closed up a slight 0.55 per cent at 91.5 cents on August 24.
