Canadian online grocer Goodfood reports 62% rise in Q1 revenues

CANADA – Goodfood Market Corp, a leading online grocery company in Canada, has announced strong financial results for the first quarter ended November 30, 2020, highlighting its continued ability to achieve strong growth while enhancing its profitability.

The company’s revenues reached $91.4 million in the first quarter of Fiscal 2021, an increase of $35.1 million, or 62% compared to the same period last year.

Its gross margins for the quarter under review reached 32%, while gross profits rose by $13.4 million, or 82% year-over-year to reach $29.6 million.

Goodfood also reported positive Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) with a 1.5% margin in the first quarter, representing an improvement of 8.0 percentage points year-over-year.

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The online grocer’s active subscribers reached 306,000 as at November 30, 2020, an increase of 76,000, or 33%, compared to November 30, 2019

“We are thrilled that Fiscal 2021 has started with strong momentum highlighted by revenue growth of over 60% and the addition of 26,000 net new subscribers,” said Jonathan Ferrari, Chief Executive Officer of Goodfood

“We continue to further expand our product offering, which now stands at well over 500 products, and roll out initiatives such as same-day delivery to enhance customer value.”

Goodfood attributed the strong Q1 performance to its continued focus strategy to become Canada’s leading online grocer.

It significantly increased its product offering and flexibility for members through same-day delivery something which impacted positively the average basket size and order frequency.

A larger subscriber base, a decrease in incentives and credits as a percentage of revenues from 20.9% to 10.8%, and low level of quality issues, also contributed to the increase in revenues, according to Goodfood.

The Covid-19 pandemic has also partly contributed to Goodfood’s strong Q1 performance.

Goodfood said it continued to experience positive impacts on its Q1 financial results related to the second wave of the COVID-19 pandemic across Canada.

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Some of the positives highlighted by Goodfood include continued subscriber growth and an increase in number of orders and average order values all of which positively impacted revenues.

“We are very pleased to report consistent expansion in gross margin on the back of our consistently solid execution and investments in technology and automation,” said Neil Cuggy, President and Chief Operating Officer of Goodfood.

“As we continue to build and optimize our footprint across the country, we remain focused on growing our penetration in online grocery coast-to-coast to build the long-term scale to achieve our growth and profitability goals.”

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