My Foodie Box Limited reported a significantly reduced net loss for the half year ended December 2024 following the divestment of its meal kit business. The company is actively pursuing new acquisitions and funding to restore shareholder value and regain its ASX listing.
- Net loss narrowed 46% to $119,300 for H1 FY2025
- Divested meal kit business in May 2024, retaining 12.33% stake in acquirer
- Raised $132,500 in unsecured loans, total borrowings now $741,368
- In advanced talks for transaction to re-comply with ASX listing rules
- Auditor flagged material uncertainty over going concern status
A Leaner My Foodie Box Emerges
My Foodie Box Limited (ASX – MBX) has reported a marked improvement in its financial performance for the half year ended 31 December 2024, posting a net loss of $119,300, a 46% reduction from the $222,012 loss recorded in the prior corresponding period. This progress follows the company’s strategic divestment of its core meal kit business in May 2024.
The sale of the My Foodie Box meal kit operations to MFB (WA) Pty Ltd has fundamentally reshaped the company’s profile. Post-divestment, My Foodie Box holds a 12.33% equity stake in MFB, down from 40% due to subsequent capital raises by MFB. However, this investment is currently carried at nil value, reflecting impairment and dilution risks.
Funding and Financial Position
To support ongoing operations and future growth, My Foodie Box has raised $132,500 in unsecured loans during the half year, with total borrowings, including accrued interest, reaching $741,368. These loans carry a 10% annual interest rate and are repayable either three years from drawdown or upon completion of a re-compliance transaction with the ASX.
The company has also extended the maturity of its promissory notes to January 2026, providing some breathing room on its debt obligations. Despite these efforts, My Foodie Box reported net current liabilities of $216,956 and net liabilities of $906,456 as at 31 December 2024, underscoring ongoing financial challenges.
Strategic Outlook and ASX Reinstatement
Since divesting its meal kit business, My Foodie Box has been focused on identifying new acquisition opportunities to restore shareholder value. The company is in advanced discussions regarding a transaction that would facilitate its reinstatement to official quotation on the ASX, requiring compliance with Chapters 1 and 2 of the ASX Listing Rules. However, no formal agreements have yet been signed, and the outcome remains uncertain.
The directors emphasize that the company’s ability to continue as a going concern hinges on securing additional funding and creditor support. The auditor’s review report highlights this material uncertainty, though no modifications to the financial statements were made.
Investor Considerations
No dividends were declared or paid during the period, reflecting the company’s focus on stabilizing its financial position. Investors should watch closely for updates on the proposed transaction, capital raising progress, and any changes in the valuation or status of the investment in MFB.
My Foodie Box’s journey from a meal kit provider to a company seeking a new strategic direction is emblematic of the challenges faced by many small-cap ASX-listed firms navigating restructuring and market re-entry.
Bottom Line?
My Foodie Box’s next moves on acquisitions and funding will be critical to its survival and return to the ASX spotlight.
Questions in the middle?
- Will the proposed transaction for ASX reinstatement proceed to completion?
- How will My Foodie Box restore value given its impaired stake in MFB?
- What are the risks and timelines associated with the company’s loan repayments and capital raises?