The following is a summary of the Goodfood Market Corp. (GDDFF) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Goodfood reported fiscal 2024 adjusted EBITDA of $9.1 million, up from $4.7 million in fiscal 2023, reflecting a substantial increase in profitability.

• The company achieved $7.6 million in adjusted free cash flow for fiscal 2024, marking its first full year of positive free cash flow.

• Net sales for Q4 were $34.1 million, a decline of 9% from the previous year, while active customers decreased to 101,000 from 116,000 in Q4 fiscal 2023.

• Gross profit for Q4 was stable at $13 million with a consistent gross margin of 38%, supported by operational efficiencies and pricing optimizations.

Business Progress:

• Goodfood launched a new acquisition strategy with the purchase of Genuine Tea, a Canadian craft tea company, aligning with their vision of building a next-generation brand portfolio.

• The company introduced a value plan offering meals under $10 per serving, aimed at making high-quality home cooking more accessible and attracting a broader customer base.

Opportunities:

• The acquisition of Genuine Tea is positioned as an opportunity to expand Goodfood's portfolio of next-generation brands, offering potential for growth through collaborations and cross-selling among brands.

• Strategic use of e-commerce and fulfillment services is identified as a key driver for future growth, leveraging Goodfood's platform and operational capabilities.

Risks:

• The decrease in active customers and the reported consumer softness in the market pose risks of continued revenue challenges.

• Fluctuations in the Canadian dollar could potentially affect the cost structure, particularly impacting purchases made in U.S. dollars.

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