- Online grocery company Goodfood (FOOD) has seen its revenue soar in the first quarter of fiscal 2021 as COVID-related restrictions remain in place
- Total revenue grew 62 per cent compared to last year, from roughly C$56.2 million to more than $91.4 million
- Gross profit also increased 82 per cent, from $16.2 million to $29.5 million
- The company said the strong performance was due to increased order sizes and frequencies, as well as a larger subscriber base
- Goodfood is currently down 3.7 per cent to $13.01 per share
Online grocery company Goodfood (FOOD) has seen its revenue soar in the first quarter of fiscal 2021 as COVID-related restrictions remain in place.
For the three months ending November 30, 2020, total revenue grew from roughly C$56.2 million to $91.4 million, representing a 62 per cent increase compared to the same period in 2019.
The company said that by increasing its product offering and flexibility for members through same-day deliveries, average basket sizes and order frequencies have been positively impacted. This, combined with an additional 26,000 new subscribers, was the driving force behind the strong performance.
Notably, gross profit also grew by 82 per cent from $16.2 million to $29.5 million, reflecting a decrease in incentives and credits as a percentage of revenue, lower unit costs for packaging and shipping, the expansion of Goodfood’s delivery capabilities, and improved purchasing power with key suppliers.
However, any further improvement was offset by supplemental costs associated with the pandemic and various additional production costs.
Despite the strong performance, the company posted a net loss of $2.62 million – a 49 per cent improvement compared to a net loss of $5.15 million in 2019.
“Our ability to generate strong growth on a larger base of members and revenues combined with these initiatives has enabled bigger basket sizes and stronger order frequency which in turn has led to stronger margin levels and positive adjusted EBITDA,” said Jonathan Ferrari, CEO of Goodfood.
“As Canadians continue to adopt online grocery at an accelerating pace, we will continue to invest in technology and our fulfilment centre ecosystem in order to cement Goodfood’s leading role in digitising Canada’s grocery industry,” he added.
Goodfood is currently down 3.7 per cent to $13.01 per share at 1:40pm EST.