Goodfood Market (TSE:FOOD) Posts Earnings Results

Goodfood Market (TSE:FOOD) announced its earnings results on Tuesday. The company reported C($0.03) EPS for the quarter, FiscalAI reports. Goodfood Market had a negative net margin of 2.14% and a positive return on equity of 12.53%. The business had revenue of C$27.54 million for the quarter.

Here are the key takeaways from Goodfood Market’s conference call:

• Generated positive Adjusted EBITDA (CAD 1.0M) and positive adjusted free cash flow (CAD 1.2M) in Q1, showing the business can be cash-generative at lower volumes through tighter cost controls.
• Net sales declined 21% YoY to CAD 27.5M with active customers down to ~66,000, management says meal-kit demand is muted with no near-term rebound expected and reported a net loss of CAD 2.6M.
• Gross margin improved by ~270 basis points to 42.3%, driven by higher average order value and lower incentives, which management cites as evidence of stronger unit economics and resilience.
• Liquidity is limited (approximately CAD 14.5–15M in cash and marketable securities) while leverage and interest expense are elevated, so capital allocation will be highly disciplined and constrained.
• New leadership is executing a 100-day organizational review and broader operational changes, targeting a turnaround within ~18 months and pursuing diversification via Heat & Eat and Genuinty rather than relying on a meal-kit rebound.

Goodfood Market Price Performance

Shares of TSE:FOOD opened at C$0.31 on Wednesday. Goodfood Market has a twelve month low of C$0.14 and a twelve month high of C$0.54. The stock’s 50 day moving average is C$0.28 and its 200-day moving average is C$0.26. The company has a quick ratio of 0.77, a current ratio of 0.98 and a debt-to-equity ratio of -212.01. The firm has a market capitalization of C$30.80 million, a price-to-earnings ratio of -3.44 and a beta of 1.98.

Analyst Upgrades and Downgrades

Separately, Desjardins cut their target price on shares of Goodfood Market from C$0.30 to C$0.25 and set a “hold” rating on the stock in a research note on Friday, November 28th. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, Goodfood Market has an average rating of “Hold” and an average price target of C$0.23.

About Goodfood Market

Goodfood is a leading online grocery company in Canada, delivering fresh meal solutions and groceries that make it easy for members to enjoy delicious meals at home every day. Goodfood’s mission is to make the impossible come true, from farm to kitchen, by enabling members to complete their weekly meal planning and grocery shopping in minutes. Goodfood members have access to a unique selection of products and exclusive pricing made possible by its world class direct-to-consumer fulfilment ecosystem that eliminates waste and retail overhead.