The Fresh Factory B.C. Ltd. has reported its financial results for the third quarter and year-to-date as of the end of September, showcasing growth in revenue and earnings. The company, which is publicly traded under the tickers TSXV:FRSH and FRA:Q4Z, announced a quarterly billed revenue of $5.8 million, marking a year-over-year increase of 3.2%. This uptick in revenue is part of a broader trend for the year, with year-to-date revenues climbing by 19.4% to $17.2 million.
A significant improvement was seen in adjusted gross margins for the third quarter, which rose to 30.2% from last year's 27.2%. This increase in profitability is attributed to the company's disciplined operational management and the successful integration of new customers, which added roughly $1.4 million in revenue. Organic growth from existing clients also contributed to the strong financial performance.
The Fresh Factory achieved a notable financial milestone this quarter by reporting its inaugural positive adjusted EBITDA at $0.1 million. This achievement reflects the company's focus on profitable growth strategies and stringent operational controls.
Despite a slight decrease in total billed revenue in the third quarter compared to the second quarter, the company saw gains in both adjusted EBITDA and adjusted gross margin, indicating an increase in profit efficacy even with somewhat lower sales. Operational improvements contributed to an operating profit boost of 1.3%, with production volumes increasing significantly, as evidenced by the assembly of over three million units during the third quarter—an approximate increase of one-fourth relative to the same period last year.
In addition to financial growth, The Fresh Factory has been committed to sustainability, with initiatives that include fully composting food waste and upgrading FOG (fats, oils, and grease) mitigation systems for better recycling practices. The company also launched a project to analyze carbon emissions across its production facilities and transportation fleet.
On October 5, The Fresh Factory began trading on the TSX Venture Exchange after delisting from the Canadian Securities Exchange. This transition marks a new chapter for the company as it continues to focus on maintaining high-quality operations with strong margins and expanding its customer base while emphasizing sustainable practices.
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