- Goodfood (FOOD) has staged a strong recovery from the impact of COVID-19 earlier this year with its second straight quarter of positive income
- For the three months ending August 31, 2020, the company generated C$83.69 million in revenue – an 85 per cent increase compared to last year’s same-period figure of almost $45.26 million
- Net income came to $1.6 million, compared to a net loss of $5.9 million in 2019
- The increase was partly due to growth in revenue and gross profit, but offset by higher wages and salaries
- Goodfood is currently up 1.69 per cent to $8.43 per share
Goodfood (FOOD) has staged a strong recovery from the impact of COVID-19 earlier this year with its second straight quarter of positive income.
For the three months ending August 31, 2020, the online grocery company saw an 85 per cent jump in revenue, from C$45.26 million in the same period of 2019 to $83.69 million this year.
This was largely attributable to growth in Goodfood’s active subscriber base, increased average order values driven by an expanded product offering, and stronger order rates.
Most significantly, net income came to $1.6 million, as opposed to a net loss of almost $5.9 million last year.
Goodfood said this came off the back of higher revenue and gross profit, as well as a decrease in selling, general and administrative expenses. However, any further gains were held back by increases in wages and salaries, which the company said supports the growth of the business.
The improved income also went some way to offsetting the damage inflicted in the first half of the year by the COVID-19 pandemic, which culminated in a net loss of $5.1 million in the first quarter and a net loss of $3.4 million in the second.
“This year has been marked by a pre-pandemic period, which saw positive secular trends pushing forward the adoption of online grocery, and the pandemic period which accelerated this shift, outpacing industry projections by several years,” said Jonathan Ferrari, CEO of Goodfood.
“Canadians are embracing shopping for groceries online and seizing this opportunity has allowed Goodfood to continue on its exceptional growth trajectory, reinforcing our leading online groceryCompany position in Canada,” he added.
Goodfood is currently up 1.69 per cent to $8.43 per share at 3:11pm EST.