Innovative Food Holdings: Reports Q4-2021 Results

Bonita Springs / FL. (ifh) Innovative Food Holdings, a leading end-to-end DTC e-commerce platform and direct-to-chef platform that provides unique specialty foods through e-commerce offerings and multichannel partnerships, reported its financial results for the fourth quarter and full year of 2021.

«Record fourth quarter and full year revenue reflect the success of the powerful specialty food focused platforms we have created. We experienced strong 72 percent year-over-year foodservice revenue growth for the fourth quarter, combined with e-commerce growth of 9 percent for the quarter. Furthermore, we believe our leading digitally enabled, end-to-end ecosystem is unlike any other food focused platform in existence today. As a result, we expect to benefit from the significant organic and M+A opportunities we are pursuing that can leverage our powerful end-to-end e-commerce platform, which includes back-end logistics, fulfillment, and procurement capabilities, as well as our front-end digital infrastructure. We believe this will provide disruptive solutions across the food industry, and accelerate our e-commerce growth in 2022 and beyond,» stated Sam Klepfish, CEO of Innovative Food Holdings.

«I am also pleased by the strong rebound we have experienced in our specialty foodservice business as reopening activity increases. In addition, we have been able to meet the needs of our customers as a result of our agile direct-to-chef platform and powerful procurement capabilities and team despite industry wide supply chain challenges. We believe this has allowed us to capture market share within our specialty food service business.»

«Our 2021 performance demonstrates the power of our established end-to-end multichannel platform. Throughout 2022 we are focused on opportunities that can rapidly scale our business and our brands and leverage the investments we have made to build our leading eCommerce platform over the past several years with a target towards sustained profitability,» concluded Klepfish.

Financial Results

Revenues in the 2021 fourth quarter increased 38 percent to a fourth quarter record of USD 20.8 million, compared to USD 15.1 million for the three months ended December 31, 2020. Fourth-quarter revenue benefited from a 72 percent increase in specialty foodservice revenue, which was partially driven by the nationwide opening of restaurants and other foodservice establishments previously affected by COVID-19. In addition, the Company’s unique supply chain capabilities continue to provide reliable, consistently high-quality specialty foodservice solutions for its customers. Fourth quarter e-commerce revenue was up 9 percent to a quarterly record of USD 8.6 million from USD 7.9 million for the same period last year. For the 2021 full year, total revenue was a record USD 62.3 million, a 20 percent increase from USD 51.7 million for the same period last year.

For the 2021 fourth quarter, selling, general, and administrative (SG+A) expenses were USD 6.0 million, or 29 percent of revenue, compared to USD 5.6 million, or 37 percent of revenue for the same period last year. The USD 0.4 million increase was primarily due to increases in advertising costs, and foodservice operating costs, and other costs associated with enhancing and expanding the Company’s platforms. For the 2021 full year, SG+A expenses were USD 20.5 million, or 33 percent of revenue compared to USD 19.5 million, or 38 percent of revenue in the prior year period.

The Company recorded GAAP net income for the 2021 fourth quarter of USD 1.7 million, or USD 0.04 per share, compared to a GAAP net loss of USD (1.1 million), or USD (0.03) per share, in the prior year’s fourth quarter. For full year 2021, the Company reported a GAAP net loss of USD (0.7 million), or USD (0.02) per share, compared to a GAAP net loss of USD (7.7 million), or USD (0.21) per share, for the 2020 full year.

The Company generated USD 2.3 million in cash from operating activities for the 2021 fourth quarter, compared to USD 1.8 million for the same period last year.

Adjusted net income a non-GAAP metric (see tables below) for the 2021 fourth quarter was USD 0.1 million, or USD 0.003 per share, compared to an adjusted net loss of USD (1.0 million), or USD (0.028) per share, for the same period last year. For the 2021 full year, adjusted net income was a loss of USD (3.2 million), or USD (0.082) per share, compared to an adjusted net loss of USD (5.0 million), or USD (0.144) per share, for the same period last year.

Cash Ebitda, a non-GAAP metric (see tables below), for the 2021 fourth quarter was USD 0.3 million, compared to a Cash Ebitda loss of USD (0.7 million), in the prior year quarter. For the 2021 full year, Cash Ebitda was a loss of USD (2.4 million), compared to a Cash Ebitda loss of USD (4.2 million) for the same period a year ago.

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