A steady lift in second-half sales is putting My Food Bag on track to deliver modest growth for the year, even as cost pressures persist.

The meal-kit delivery service said it expects full-year revenue to rise 4.9 per cent from the prior year, with second-half revenue forecast to increase 6 per cent compared with the first half.

CEO Mark Winter said the business had maintained positive trading despite ongoing cost challenges.

“Despite ongoing ingredient cost inflation, our gross margin in the second half has improved compared with the prior year.”

Winter said efforts to improve the customer experience and strengthen the core meal kit offering are supporting growth in retained active customers, with retention levels increasing year on year.

The company said it will continue to invest in its core brands as well as the My Food Bag Shop, which offers one-off food gifts and care packages without requiring a subscription.

Product expansion has also been a focus, with My Food Bag introducing options tailored to specific dietary needs. These include a High Protein preference and a GLP-1 support range, aimed at consumers using weight-loss medications.

“These offerings align with our strategy to better meet the dietary and health needs of New Zealand households,” Winter added.

My Food Bag expects full-year net profit after tax to come in between $6.4 million and $6.8 million, slightly above the $6.3 million reported in the last fiscal year.

Looking ahead, the company said it is monitoring potential risks from the escalating conflict in the Middle East but noted it is too early to assess any impact.