(Montreal) Goodfood sales fell 15% in its first quarter as strong demand, supported by health measures, eased.
Posted at 3:26 p.m.
The ready-to-cook meals specialist’s revenue fell 15% from the same period a year earlier, reaching 77.8 million in the three months ended December 4.
Prior to the earnings release, analysts had expected a smaller decline with revenue of $81.3 million, according to forecasts compiled by financial data firm Refinitiv. In the morning, the company’s stock lost 19 cents, or 5.16%, to $3.49 on the Toronto Stock Exchange.
Martin Landry of Stifel GMP sees the drop in revenue to be more pronounced than the 5% drop in the fourth quarter. He also notes that the number of subscribers fell by 2,000 during the three-month period to settle at 296,000. “This is the lowest number of subscribers in five quarters, comments the financial analyst. It could mean that Goodfood is losing market share. »
Co-founder and CEO Jonathan Ferrari offered reassurance during a call with analysts, highlighting the progress of its fast grocery delivery service.
He points out that just eight weeks after the launch of 30-minute delivery in Montreal and Toronto, the service has nearly 13,000 active subscribers. The average basket price is around $65 and it increased from November to December.
“We are seeing an increase in the number of orders of 15% per week, over the past five weeks,” said the leader. This is a clear signal of the exponential potential for sales growth that we have ahead of us. »
The Montreal company recorded a net loss of 21.6 million in the most recent quarter, compared to a net loss of 3.1 million in the same period last year.