Kevin Bowler, the chief executive of listed food delivery business My Food Bag has resigned from the company, saying the “time is right” after more than four years at the company.
My Food Bag chief financial officer Mark Winter will act as interim CEO while the board commences a search for Bowler’s replacement.
My Food Bag has announced that chief executive Kevin Bowler – who joined the company in mid-2018 as its first independent CEO – has resigned. He officially leaves the business on October 14.
The company’s chair Tony Carter said Bowler had successfully led the business through the Covid-19 pandemic, as well in its transition to a publicly listed company.
He said the pandemic especially had been a challenging period for the business, including heightened health and safety risks, supply chain disruptions, rapid growth, and high inflation.
“During Mr Bowler’s tenure, the business virtually tripled its earnings, took control of national operations from third parties, opened two new assembly facilities in Auckland and Christchurch, and broadened its offering to customers by adding recipe choice, Made meals, and its grocery options via the Kitchen,” Carter said.
Bowler said in a statement he was sad to be leaving My Food Bag, “but I know the time is right for my family and me.
“When I look back at my time with the business, I’m most proud of the way our team has worked together tirelessly through the uncertainties of the pandemic and still achieved all of its pre-listing forecasts in the FY21 and FY22 years,” he said. “This was done while keeping each other safe and doing our bit to support Kiwis in lockdowns and periods of isolation across the motu.”
My Food Bag chief financial officer Mark Winter will act as interim CEO while the board commences a search for Bowler’s replacement.
In August, the company’s board was forced to defend the company’s ailing share price at its second annual general meeting as a listed company. My Food Bag last March became the country’s largest NZX listing since 2014 when it listed at $1.85 a share, valuing it at $449 million.
There was criticism ahead of My Food Bag’s IPO about its owners selling down their stakes by 75% in the IPO, and the company’s share price has struggled since listing.
The company had in May reported revenue up $3.3m year-on-year, to $194m, more than $7m higher than forecasts provided in its prospectus.
Earnings before interest, tax, depreciation and amortisation, meanwhile, were up 18% to $34.2m, while net profit after tax increased to $20m from $2.4m.
Focus on executing business strategy
“We would like to acknowledge those who participated in the IPO and have stuck with us and continue to recognise the value in this business, particularly having seen it deliver an on-forecast improvement in FY22 earnings,” Carter said.
“We assure you that the board and management remain focused on executing the business strategy and the performance of the business. In the long run, we are confident the market will judge the business against its performance and potential. And, on both counts, our board remains firmly confident.”
