Goodfood: Reports Second Quarter 2023 Results

Montreal / CA. (gfc) Goodfood Market Corporation, a leading Canadian online meal solutions company, announced financial results for the second quarter of Fiscal 2023, ended March 04, 2023. «We are pleased to have delivered on our commitment to achieve positive Adjusted Ebitda this quarter, supported by structurally higher gross margins. These results highlight the successful turnaround of our operational efficiency and consistent improvement of our cost structure driving solid financial performance. Our gross margin surpassed the 40% mark for the first time in Goodfood’s history with lower net sales of CAD 42 million being driven in part by our focus on attracting and retaining higher value customers that require lower incentives, leading to better unit economics. Combined with continued discipline in our selling, general and administrative expenses, our Adjusted Ebitda came in at CAD 3 million this quarter compared to a loss of CAD 14 million in the same quarter last year,» said Chief Executive Officer Jonathan Ferrari.

«As we enter the third quarter of our fiscal year, we are encouraged with our profitability levels and the resulting cash flow improvements, with adjusted free cash flow1 use improving by CAD 25 million to CAD 2 million this quarter,» added Ferrari. «Having delivered on a simpler balance sheet and profitability, our focus is shifting towards profitable growth. We have developed key customer-centric initiatives such as a new customer reward program, restaurant collaborations, and the launch of our new Keto and Paleo meals supported by our exciting new marketing campaign with Montreal Canadiens captain Nick Suzuki. We have also committed to further elevate our dedication to sustainability through multiple initiatives that can be found in our Be Good-er open letter. With the successful execution of our cost structure turnaround and our focus shifting to growth, we believe we are well underway towards implementing the building blocks that will drive long-term, consistent profitable growth and value for our shareholders,» concluded Ferrari. For additional information please read the company’s PDF file below (272 KB):