The following is a summary of the Goodfood Market Corp. (GDDFF) Q2 2024 Earnings Call Transcript:
Financial Performance:
Goodfood Market Corp. recorded a positive adjusted EBITDA for the fifth consecutive quarter, totalling $3.5 million and a margin of 9%.
Total adjusted EBITDA for the past 12 months reached $9 million, a significant leap from a $12 million loss in the previous period.
Goodfood experienced positive cash flows in Q2, with $4.3 million in H1 2024, representing an $11 million improvement from H1 2023.The company markedly reduced its net leverage by 70% from over 8 turns to slightly over 2 turns within nine months.
Gross margins maintained a consistent level around 40%, with an SG&A expense reduction surpassing $9 million compared to H1 2023.
The net sales were down by 5% YoY to $39.8 million.
Business Progress:
GoodFood's central Meal Kit business witnessed growth with improved user experience resulting in the largest average basket size in the company's history.
The company has shown signs of improvement in YoY net sales progression, recorded at a 5% decline this quarter.
Initiatives to amplify customer value are being implemented to stimulate top-line growth.
With growing profitability, Goodfood aims to invest in automation and AI technology to decrease costs and enhance operational consistency.
New strategic measures have been deployed including offering a wider variety of customizable recipes to cater to the growing demand for healthy meals.
Goodfood plans on exploring new growth avenues, possibly through strategic acquisitions, to maximize its established assets, customer base, and footprint.
More details: GOODFOOD MARKET CORP IR
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