- The Very Good Food Company (VERY) has reported a net loss for the second quarter of 2020 despite a substantial improvement in overall performance
- Total revenue for the period increased 395 per cent, from C$222,054 in the same period of 2019 to more than $1.1 million this year
- Over the last six month period, the company also improved gross profit margins from 34 per cent to 42 per cent
- However, expenses also improved significantly, from $267,562 to over $2.1 million, resulting in an overall net loss of more than $1.6 million
- The Very Good Food Company (VERY) is currently up 2.61 per cent and is trading at $1.57 per share
The Very Good Food Company (VERY) has reported a net loss for the second quarter of 2020 despite a substantial improvement in overall performance.
Total revenue for the period ending June 30, 2020, came to just over C$1.1 million, representing a 395 per cent increased compared to $222,054 in the second quarter of 2019. This was largely driven by an increase in e-commerce store sales.
Gross profit margins have also increased over the last six month period, from 34 per cent to 42 per cent.
This figure represents a notable advantage compared to other plant-based food providers, such as Beyond Meat, which recently announced a 29.7 per cent gross margin on revenues.
However, The Very Good Food Company saw a similar increase in expenses for the second quarter, from $267,562 last year to more than $1.6 million this year.
This contributed to a significant increase in net loss, from $246,740 in 2019 to over $1.6 million in 2020.
Nevertheless, Mitchell Scott, CEO of The Very Good Food Company, said he is extremely pleased with the second quarter financial performance.
“With a very healthy balance sheet and quickly growing demand for our products, we are in a position of strength as we charge forward with our international expansion.
“Over the coming quarters, investors can expect to see significant progress on our next phase of growth, as we transition to becoming a much larger company with global ambitions,” he added.
As of June 30, the company had increased its total assets to more than $6.75 million, including $3.5 million in cash.
The Very Good Food Company (VERY) is currently up 2.61 per cent and is trading at $1.57 per share at 3:18pm EDT.