Canada's Goodfood Q3 sales drop, but gross margin holds

Overview

• Goodfood Q3 revenue drops 20% to C$31 mln

• Co, gross margin inch up to 44.3% from 44%, despite lower net sales

• Heat & Eat meals and Genuine Tea acquisition drive growth

Outlook

• Goodfoodready for scaling phase for Heat & Eat meals in early fiscal 2026

• Company aims to maintain positive cash flows and profitability

• Company acknowledges economic uncertainties impacting customer spending

Result Drivers

• DECREASED ACTIVE CUSTOMERS - Economic uncertainties and reduced incentives led to fewer active customers, impacting net sales

• HEAT & EAT MEALS - New product line contributed positively to sales, reaching $1 mln in run-rate revenue without advertising

• GENUINE TEA ACQUISITION - Acquisition supported net sales growth, outperforming expectations

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the online services peer group is "buy."

• Wall Street's median 12-month price target for Goodfood Market Corp is C$0.30, about 36.7% above its July 21 closing price of C$0.19

Press Release: ID:nGNXbYZ4hM