Goodfood Market Corp. (PNK:GDDFF) Q1 2025 Earnings Overview

• Goodfood Market Corp. (PNK:GDDFF) reported an EPS of -0.01426, slightly outperforming estimates.
• The company's revenue of $35 million did not meet the expected $36 million, but it achieved a gross margin of 39.6%.

Goodfood Market Corp. (PNK:GDDFF), a leading Canadian online meal solutions company, offers a variety of meal kits and ready-to-eat meals, catering to the growing demand for convenient food options. Despite the competitive landscape, Goodfood has successfully established a niche in the Canadian market. The company's Q1 2025 earnings shed light on its financial performance amidst these challenges.

On January 21, 2025, Goodfood reported an earnings per share (EPS) of -0.01426, slightly better than the estimated EPS of -0.01427. However, the company's revenue of $35 million fell short of the estimated $36 million. Goodfood achieved a gross profit of $14 million, resulting in a gross margin of 39.6%.

The company reported a net loss of $1.7 million but managed to maintain an adjusted EBITDA of $2 million, representing an adjusted EBITDA margin of 4.7%. This indicates that Goodfood is generating positive cash flow from its core operations, even in a challenging consumer demand environment in Canada. The company also reported cash flows from operating activities amounting to $2 million and an adjusted free cash flow of $2 million for the quarter.

Goodfood's financial health is further supported by a healthy cash balance of $21 million, following the acquisition of Genuine Tea and the full repayment of a term loan. The total net debt to adjusted EBITDA ratio stands at 2.64, indicating a manageable level of debt relative to earnings. The company's current ratio of 1.04 suggests a modest level of short-term financial health, with slightly more current assets than current liabilities.

Despite a negative price-to-earnings (P/E) ratio of -10.96, Goodfood's price-to-sales ratio of 0.25 suggests that the market values the company at 25 cents for every dollar of sales. The enterprise value to sales ratio is 0.48, reflecting the company's valuation in relation to its revenue. The enterprise value to operating cash flow ratio is 9.81, indicating how many times the operating cash flow can cover the enterprise value.