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Goodfood reports record quarterly revenues surpassing $100 Million

MONTREAL – Goodfood Market Corp. (TSX: FOOD), a leading online grocery company in Canada, today reported strong financial results for the second quarter ended February 28, 2021, further demonstrating its ability to generate superior growth and margins…

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MONTREALGoodfood Market Corp. (TSX: FOOD), a leading online grocery company in Canada, today reported strong financial results for the second quarter ended February 28, 2021, further demonstrating its ability to generate superior growth and margins in the fast-growing online grocery and meal solutions markets.

“We are very proud to have reached two great milestones in Goodfood’s journey in disrupting the Canadian grocery industry. Not only have we reached $100 million in revenues this quarter for the first time since inception, but we have also generated over $30 million of gross profit, both records for Goodfood,” said Jonathan Ferrari, Chief Executive Officer of the Company. “The uptake of Goodfood’s grocery products also reached new heights with over 1.1 million grocery products sold in this quarter alone and we now have more than 750 products available to our members. The continued strength of our members’ interactions with our offering has led to increased basket sizes and order frequencies, and that, combined with our strong balance sheet, positions us ideally to further penetrate the online grocery market that is still in the early days of its digitization,” concluded Mr. Ferrari.

“As our consistent execution and investments in footprint, automation and technology continue, we are thrilled to report a fourth consecutive quarter of positive Adjusted EBITDA, which on a last-twelve-months basis reached a margin of 3.6%, and that despite encountering demand-driven challenges and costs as a result of a highly-popular grocery promotion week we ran during the quarter to grow customer awareness of our expanding line of grocery items,” said Neil Cuggy, President and Chief Operating Officer of Goodfood. “Our gross profit reached a record $30.6 million as a result of unlocked scale efficiencies, increased penetration of our delivery capabilities, and lower credits and incentives as a percentage of revenues. As we continue to enhance our operations across the country, we remain focused on building the optimal footprint of centralized production facilities and satellite fulfilment centres to enable faster delivery times and continued penetration coast-to-coast. We are exceptionally well positioned to benefit from the growing shift to e-commerce grocery and to provide an increasing part of Canadians’ food baskets,” concluded Mr. Cuggy.

The World Health Organization declared COVID-19 a global pandemic on March 11, 2020, and the outbreak has had an impact on Goodfood’s overall business and operations. As the Company is deemed an essential service in Canada, Goodfood has continued to operate without interruption.

Starting in the second half of Fiscal 2020, Goodfood experienced several positive impacts on its financial results related to the COVID-19 pandemic such as increased subscriber growth, number of orders and average order values, which positively impacted revenue and continued in the first half of Fiscal 2021, with the second wave of the COVID-19 pandemic across Canada.

The online grocery industry is among the fastest-growing industries in the world. As a result, Goodfood believes there are significant opportunities to rapidly grow its subscriber base and basket sizes by investing in highly targeted marketing campaigns, capacity expansion through additional facilities and investments in automation, increasing its product offering and in continuing to expand its national platform.

Goodfood (TSX: FOOD) is a leading online grocery company in Canada, delivering fresh meal solutions and grocery items that make it easy for members from across Canada to enjoy delicious meals at home every day. Goodfood’s vision is to be in every kitchen every day by enabling members to complete their grocery shopping and meal planning in minutes. Goodfood members have access to a unique selection of online products as well as exclusive pricing made possible by its world-class direct-to-consumer infrastructure and technology that eliminate food waste and costly retail overhead. As at February 28, 2021, Goodfood had 319,000 active subscribers.

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