Goodfood Reports First Quarter 2022 Results

Montreal / CA. (gfc) Goodfood Market Corporation, a leading online grocery company in Canada, announced financial results for the first quarter of Fiscal 2022, ended December 04, 2021. «We are pleased with the progress the Goodfood team has made against both the improvement of our near-term operational performance and the execution of our on-demand grocery and meal-solutions rapid delivery growth driver. Comparing our first quarter 2022 financial performance to the fourth quarter 2021 in which we saw for the most part Covid-19 restrictions lifted, net sales of CAD 78 million were stable with close to a million orders delivered in the quarter and positive momentum in order rates and Active Customers (1) versus the summer lows,» said Jonathan Ferrari, Chief Executive Officer of Goodfood. «The quarter saw the beginning of an expected progressive improvement to our Adjusted EBITDA margin (1) compared to fourth quarter of 2021, driven by 110 basis points gross margin improvement against the backdrop of inflationary pressures, as well as an SG+A cost containment effort that led to an 8 percent reduction in our SG+A spend versus the fourth quarter of 2021. Lastly, we are also pleased with the progress made on our reorganization initiative that once completed will generate CAD 11-CAD 13 million of annualized savings compared to the fourth quarter of 2021.»

«With CAD 105 million of cash on hand and additional revolver availability, we have strong balance sheet flexibility to continue executing and implementing our long-term growth driver. During the quarter, we have made exciting progress on our 30-minute grocery and meal solution delivery strategy and initial on-demand results of our Toronto and Montreal facilities are exceeding expectations. With a net promoter score of over 80, growing customers’ baskets consistently above the CAD 65-mark, monthly cohort order retention rates above 110 percent and order frequencies exceeding 2.5 times per month, we are seeing our on-demand metrics outperforming many global quick commerce companies. Based on the momentum of these results, we are glad to announce the launch of a third local micro-fulfilment centre, expanding our Toronto coverage to Oakville and Mississauga, with the expectations of three additional on-demand facility launches by the end of March, strategically positioning us to expand this ground-breaking service to a majority of Canadians in the coming years,» added Ferrari.

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