Q1 2025 Goodfood Market Corp Earnings Call Transcript
Key Points
- Goodfood Market Corp (GDDFF) reported its eighth consecutive quarter of positive adjusted EBITDA, reaching CAD1.6 million with a margin of 4.7%, showing consistent profitability growth.
- The company achieved positive adjusted free cash flow of CAD1.9 million, marking the fifth quarter in the past eight with positive cash flow.
- Goodfood Market Corp (GDDFF) successfully closed the acquisition of Genuine Tea, marking the first step in its strategy to acquire and grow a portfolio of next-generation brands.
- The average order value of customers reached a record high, contributing to stable net sales per active customer year over year.
- The company announced a Bitcoin Treasury Investment strategy to strengthen its balance sheet and hedge against inflation and rising food costs, aiming to create shareholder value.
- Net sales for Q1 2025 were CAD34.7 million, reflecting a 14% decline year over year due to softer consumer spending and lower active customer numbers.
- Active customers decreased to 106,000 from 124,000 in Q1 of the previous year, indicating challenges in customer retention and acquisition.
- The macroeconomic environment remains challenging, with organic growth proving elusive for Goodfood Market Corp (GDDFF).
- The company faces potential headwinds from currency fluctuations, particularly the weakening Canadian dollar, which could impact cost of goods sold.
- There is concern about potential tariffs on US imports into Canada, which could affect pricing and sourcing strategies for Goodfood Market Corp (GDDFF).
Good morning, ladies and gentlemen, and welcome to the Goodfood Q1 of fiscal 2025 earnings call and webcast. (Operator Instructions)
I would like to remind everyone that this conference call is being recorded today, January 21 at 8AM Eastern time.
Furthermore, I would like to remind you that today's presentation may contain forward-looking statements about Goodfood's current and future plans, expectations and intentions, results, level of activity, performance and goals or achievements or other future events or developments. As such, please take a moment to read the disclaimer on forward-looking statements on slide 2 of the presentation.
Please be aware that during the call, presenters will refer to certain metrics and non-IFRS measures where possible. These measures are identified and reconciled to the most comparable IFRS measures in our MD&A. Finally, let me remind you that all figures expressed on today's call are in CAD unless otherwise stated.
I would now like to turn the meeting over to your host for today's call, Jonathan Ferrari, Goodfood Chief Executive
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