Goodfood Market (TSX:FOOD) reported second-quarter earnings that saw net sales continue to drop during its second quarterly report, with a slight improvement in the company’s net loss. Shares were down 12% at market open on Thursday.
- Net sales were down to $73.4 million — a 6% decrease quarter over quarter and a 27% decrease year over year.
- Its net loss decreased to $20.6 million from $21.6 million during the first quarter of 2022.
- Its micro-fulfillment centres increased to six, with a 108% increase quarter over quarter in households.
- Goodfood stock expects net sales to be lower during the next season.
Such indicators included the improvement of the company’s net loss, bringing it down to $20.6 million. Furthermore, Goodfood stock brought its operating cash flow down to $13.7 million, down from $23.7 million the year before.
Overall, there were signs of improvement, but net sales continue to drop. The company reported net sales of $73.4 million. This was a 6% decrease quarter over quarter from $77.8 million and a 27% decrease from $100.7 million the prior year.
What did Goodfood management say? Management focused in on these “value-creating drivers” during the report. This included reducing costs, growing the on-demand customer base, and launching MFCs to meet the growing demand.
“Only Goodfood, through our vertically integrated on-demand grocery and meal solutions network, allows Canadians to fulfill their meal planning needs in minutes with no mark-up to in-store prices. We are thrilled to have grown our on-demand Active Customer base to over 27,000 households in Toronto and Montreal, clearly demonstrating Canadians’ appetite for a fast delivery of our unique selection of products, and we are excited by the opportunity the recent opening of our digital store to non-subscriber creates.”Johnathan Ferrari (NYSE:RACE), chief executive officer of Goodfood
This coupled with a slower spring and summer season should be something Goodfood investors need to be aware of, management stated. Furthermore, fewer COVID-19 restrictions and supply-chain demands could continue to weigh on Goodfood stock as well.
Shares of Goodfood stock were down 12% as of writing.
The post Goodfood Stock Plummets 12% as Sales Continue to Drop appeared first on The Motley Fool Canada.
Fool contributor Amy Legate-Wolfe owns Goodfood Market Corp. The Motley Fool recommends Goodfood Market Corp.