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

Goodfood Market

22/07/2025 11:45

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$31 mln
C$30.50 mln (1 Analyst)
Q3 Adjusted EBITDA
C$3 mln
Q3 Gross Margin
44.3%
Q3 Gross Profit
C$14 mln


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

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)