- Online grocery company, Goodfood Market Corp (TSX:FOOD) has reported a 61 per cent increase in revenue for the quarter ending February 29, 2020
- Gross profit was also up 133 per cent to C$17.8 million
- The company’s active subscribers are up 55 per cent over the last 12 months
- While COVID-19 has not yet had an impact on financials, the company is expecting to be positively affected by the outbreak in the third quarter of this year
- At the previous market close, Goodfood Market Corp (FOOD) was trading at $4.14 per share, with a market cap of $241.23 million
Online grocery company, Goodfood Market Corp (TSX:FOOD) has reported a 61 per cent increase in revenue from the previous quarter.
The company, which delivers meals and grocery items across Canada, increased revenue to C$58.8 million, compared to $36.6 million for the corresponding period in 2019.
Gross profit for the quarter also grew to $17.8 million, representing a 133 per cent increase year-over-year.
Goodfood says that the strong results were primarily driven by the continued growth in the number of active subscribers, which is up 55 per cent over the last 12 months, totalling 246,000.
In addition, the company cited strategic marketing initiatives, an increase in the average order size and the expansion of Goodfood’s product offering as other significant factors.
Jonathan Ferrari, CEO of Goodfood, also drew attention to the company’s solid financial position, with almost $70 million in cash and cash equivalents.
“Our brand recognition is stronger than ever and gaining momentum, supported by highly successful marketing campaigns.
“Combined, these pillars position us ideally to deliver on our long-term growth strategy to be the leading online grocer in Canada,” he said.
Separately, today’s announcement also noted some operational impacts as a result of the COVID-19 outbreak.
Despite receiving designation as an essential service, Goodfood has experienced challenges within its supply chain, subsequently putting pressure on food and labour costs.
While the company is still able to fulfil orders, Goodfood is aware that the current stresses on its supply chain, inventory and costs may heighten depending on the longevity of the pandemic.
“We have experienced greater demand for Goodfood’s products during the currentCOVID-19 crisis. While we continue to fulfill that demand, we have placed the safety of our employees and members as our first priority,” Jonathan said.
However, from a financial perspective, the company remains relatively untouched.
In fact, a positive impact is expected over the coming quarter. With isolation and social distancing policies now in place across the country, Goodfood anticipates its subscriber base, order rates and order values to continue their upward trend.
At the previous market close, Goodfood Market Corp (FOOD) was trading at $4.14 per share, with a market cap of $241.23 million