My Food Bag: What happens next - and who will lead the company long term?

My Food Bag's share price has been on a downward trend since listing on the NZX in March 2021. Photo / Supplied

Analysts are still searching for a catalyst to turn around the share price performance of meal kit company My Food Bag but fresh leadership could be a step in the right direction.

On Friday the NZX-listed firm announced it had received chief executive Kevin Bowler's resignation and his last day with the firm would be October 14.

Chief financial officer Mark Winter will act as interim CEO following Bowler's departure.

The news did send My Food Bag shares slightly higher - the stock closing up 3c or 4.7 per cent to close at 67c on Friday.

Hobson Wealth investment strategist Ed Glennie said news of Bowler's resignation was "understandable" but came as a bit of a surprise.

"I think the word seems to be that people think it was Cecilia Robinson who has come in recently [and] has perhaps pushed for it," Glennie told the Herald.

A change in management could be seen as "a step in the right direction" for My Food Bag, he said.

My Food Bag co-founder and former chief executive Cecilia Robinson rejoined the board last month, following the resignation of Waterman Capital director Chris Marshall.

Robinson co-founded the Auckland-based business with her husband James Robinson, Theresa Gattung and celebrity chef Nadia Lim in 2012. She was chief executive of the company until 2018 ahead of the firm's public listing.

Glennie speculated that perhaps Robinson coming back into the fold was "shaking things up".

Robinson is currently chief executive of healthcare start-up Tend Health. However, she has remained passionate about My Food Bag and how the company can make a dent within the $22 billion grocery sector.

James Robinson said previously, in an interview with BusinessDesk, that their biggest regret was selling down their shareholding in 2016. That was when Waterman Capital became involved before taking the company public last year.

However, Cecilia Robinson today told the Herald neither she nor James had any intention to put themselves forward as CEO.

"Alongside Tend and the governance positions we hold, we have a full schedule," Robinson said.

"We are very mindful of only taking on what we can put 100 per cent into. So, we have no intention to put either of us forward for the CEO position. Instead, I'll be part of the appointment process (along with the other directors) for a new CEO and continue to help serve the business as a director with a particular focus on marketing and growth."

My Food Bag listed on the New Zealand Stock Exchange in March 2021 and the company's share price has been on a downward trend ever since. The shares were sold in an IPO at $1.85 a share but listed at $1.74 before continuing to fall despite the company hitting its prospectus financial forecasts.

Lately however, the company has been hurt by inflation, particularly in ingredients and labour costs.

Glennie said at present My Food Bag was "lacking a catalyst" to turn that share price around.

"If they do announce a high-profile CEO to come in - even someone out of the supermarket sector would be interesting - if they took a hire out of that it would be a real signal that they mean business."

My Food Bag chief executive Kevin Bowler has resigned. Photo / Supplied

He said My Food Bag still seemed to have the institutional knowledge support from the likes of Milford Asset Management, which bought into the IPO, but one remaining issue was that Waterman still had a stake "hanging over the market."

"If a large stake was sold [by Waterman] with a new CEO coming onboard that really would be a positive catalyst, but you can't really see that in the current environment materialising."

Milford Asset Management has been contacted for comment.

My Food Bag posted a $20 million net profit after tax and revenue of $194m in FY22. The company has met its guidance and paid dividends of 7 cents per share for the year. However, its share price has failed to flourish.

Glennie said he could understand why Bowler had resigned, although he was unsure whether this was out of his own intention or the result of pressure to.

"Even though they have met guidance, and ticking along and paying out the dividend, which is what they said they would, the stock just doesn't seem to get a break.

"As CEO I can imagine that would be quite frustrating."

Bowler has not announced what he will do next. He said he was sad to be leaving but felt the time was right.

Chairman Tony Carter said Bowler had successfully led the business through the Covid-19 pandemic, which delivered several significant challenges, such as heightened health and safety risks, supply chain disruptions, rapid periods of growth and high inflation.

"It has been a challenging time for My Food Bag and despite this, with Kevin's leadership, the business has performed well, transitioned to a publicly listed company and is investing for the future."

The My Food Bag board is commencing a search for Bowler's replacement.