Goodfood Market reported net sales of $40 million for its second quarter of fiscal 2024, representing stability compared to the previous quarter, but a decline of 5% compared to the same period last year.
The Montreal company specializing in ready-to-prepare meals presented on Tuesday the financial results for its quarter ending March 2.
The company reported an improvement in its net profit, which stands at around 1.4 million. This is an increase of 1.3 million compared to the second quarter of fiscal 2023.
Marché Goodfood also posted adjusted free cash flow of $330,000, an improvement from a deficit of around $2.2 million at the same time last year.
The company attributes this increase in part to an improved adjusted gross margin and a reduction in SG&A expenses.
Goodfood CEO Jonathan Ferrari reported that adjusted free cash flow was green for a second consecutive quarter.
Even if sales fell from one financial year to the next, they constitute “the most stable performance observed since the fourth quarter of fiscal 2021”, while consumer spending saw a decrease, underlined Mr. Ferrari in a press release.
Goodfood mainly explains the decline in sales by the decrease in the number of active customers, specifying that it is focusing on customers offering better savings per unit. However, the increase in the average order value helped offset the losses.
“We continue to work to improve our customer value proposition, and our initiatives have started to generate results. Our members’ average basket size for this quarter was the largest on record, and we are seeing improvements in our customer feedback metrics,” said Mr. Ferrari.
Marché Goodfood posted earnings before interest, taxes, depreciation and amortization (EBITDA) of 3.5 million last quarter, compared to 3 million in the same period last year.