Goodfood sees net sales fall in second quarter as customer base grows
Goodfood Market Corp.a Canadian online grocery company offering fresh meal solutions and grocery items, released its financial results for the second quarter of fiscal 2022, ended March 5.
Net sales were C$73.4 million, compared to $77.8 million in the first quarter of Fiscal 2022 and $100.7 million in the second quarter of Fiscal 2021.
Despite the slight drop in turnover, the company made progress in key areas. By catering to Canadians’ appetite for fast delivery of a unique selection of products, Goodfood has increased the number of active on-demand customers by 108% since the first quarter.
“Only Goodfood, through its vertically integrated network of on-demand grocery and meal solutions, enables Canadians to meet their meal planning needs in minutes without in-store price markups,” said Jonathan Ferrari, CEO from Goodfood, whose main production plant and administrative offices are in Montreal.
Goodfood has also expanded its micro-distribution center footprint. This‘s now operates six centers in the dense urban areas of Toronto, Montreal and Ottawa, Canadathe capital, and where the company’s first automated facility opened in March.
The company also saw a C$1 million improvement in adjusted EBITDA and a C$5 million reduction in net cash used in operating activities compared to the first quarter of 2022.
Other reported earnings included gross margin of 24.0%, flat from gross margin of 24.0% in the first quarter and lower than gross margin of 30.4% recorded in the second quarter of fiscal 2021. Net loss was $20.6 million, lower than net loss of $21.6 million in the first quarter and higher than net loss of $4.3 million in the second quarter of the year 2021.
“I am pleased with the quarterly progress we are making on our three main value drivers,” Ferrari said. “Starting with our goal of improving profitability and cash flow, we have made continuous improvements to our cost structure and working capital management, resulting in cash flow used in operating activities. operating of $13.7 million, a significant improvement from the $18.9 million and $23.7 million used in the first quarter of fiscal 2022 and the last quarter of fiscal 2021, respectively . From an operational perspective, we have successfully implemented a series of efficiency initiatives that offset inflationary pressures and other macroeconomic headwinds to align from a gross margin perspective to the first quarter of 2022. During the quarter, we also continued to sequentially reduce our fixed cost structure, having now fully realized the previously announced $12 million in run-rate savings from workforce reduction.
In the meantime, Goodfood has welcomed John Khabbaz to its board, replacing Hamnett Hill, who resigned for personal reasons but will continue to be a major shareholder in the company.
Khabbaz is the founder and Chief Investment Officer of Phoenician Capital, an investment management firm headquartered in New York.
“As an entrepreneur and founder myself, I understand the challenges and opportunities that young, growing companies face,” Khabbaz said. “Together with my fellow board members, I will seek to guide this dynamic team to solidify its leadership in the Canadian online grocery market. Goodfood is currently selling at an attractive valuation and, in the long run, the market will recognize its unique competitive advantages. »