Proactive Investors - Goodfood Market Corp (TSX:FOOD) has reported its first positive full-year adjusted underlying earnings (EBITDA) as operational improvements and pricing optimization resulted in a record gross margin for the Canadian meal kit company.
Reporting back for the fourth quarter to September 2, 2023, Goodfood delivered net sales of $37 million, down 26% from a year earlier.
Active customers declined as it focused on attracting and retaining customers willing to spend more, supporting a 9.9% year-over-year improvement in its gross margin to 38.2%.
Gross profit was steady at $14.2 million, while its net loss for the quarter narrowed to $4 million, a $54 million improvement compared to the same quarter last year.
For the full year, it reported an adjusted EBITDA of $5 million, an improvement of $46 million compared to 2022.
“We are especially proud of our lean cost structure that, even in the face of seasonal fluctuations during the summer months, helped deliver positive adjusted EBITDA margin 1 this quarter, a testament to our team’s discipline and efforts,” CEO Jonathan Ferrari (NYSE:NYSE:RACE) said in a statement.
“As we look to Fiscal 2024, we are energized to have concluded our third consecutive quarter with positive adjusted EBITDA and showing significant improvements to cash flows, underscoring the resilience and profit-generating ability of Goodfood.”