• Net sales were $42 million for the second quarter, down 43% compared to the same quarter last year, as a result of our focus on higher value customers, which resulted in better unit economics
• Record quarterly gross margin of 40.7%, an improvement of 16.7% compared to the same period last year
• Net income for the quarter was $0.1 million, a $21 million improvement compared to the same period in 2022
• Positive adjusted EBITDA margin¹ of 7.2% for adjusted EBITDA¹ of $3 million in the quarter, an improvement of $17 million from a loss of $14 million in the same quarter last year
• Adjusted free cash flow¹ Utilization of $2 million for the second quarter, an improvement of $25 million for the same period last year
• Confirmation of positive Adjusted EBITDA guidance¹ in the third quarter of fiscal 2023 due to an improved cost structure as a result of completed cost savings measures, with the focus now shifting to growth

MONTREAL, April 12, 2023 (GLOBE NEWSWIRE) — Goodfood Market Corp. (“Goodfood” or “the Company”) EATa leading Canadian online meal company, today announced financial results for the second quarter of fiscal 2023 ended March 4, 2023.

“We are pleased to have delivered on our promise to deliver positive Adjusted EBITDA¹ in the quarter, supported by structurally higher gross margins. These results underscore the successful turnaround of our operational efficiencies and consistent improvement in our cost structure, resulting in solid financial performance. Our gross margin surpassed the 40% mark for the first time in Goodfood’s history on lower net sales of $42 million due in part to our focus on attracting and retaining higher-value customers who require lower incentives, leading to leads to better economic efficiency of the units. This combined with continued discipline on our selling, general and administrative expenses results in our Adjusted EBITDA¹ made a profit of $3 million for the quarter compared to a loss of $14 million in the same quarter last year,” said Jonathan Ferrari, chief executive…