Goodfood Market Corp Faces Revenue Decline Amid Q2 2025 Results
Montreal, Tuesday, 22 April 2025.
Goodfood Market Corp reported a Q2 2025 net loss due to a 23% revenue decline, missing earnings per share forecasts. Despite challenges, the gross margin and adjusted EBITDA remained positive.
Q2 2025 Financial Performance Overview
Goodfood Market Corp (TSE: FOOD) recently disclosed its financial results for the second quarter ending on March 8, 2025, reporting a net sales decline to CAD 30.5 million, a significant 23% decrease compared to the same quarter last year when sales were CAD 39.76 million. This resulted in a net loss of CAD 2.39 million for Q2 2025, sharply contrasting with the net income of CAD 1.39 million recorded in the previous year [1][2].
Challenges in Meeting EPS Forecasts
The earnings per share (EPS) figures reflected the income challenges, with a reported basic loss per share from continuing operations at CAD 0.03, deviating from last year’s EPS of CAD 0.02, highlighting a 150% reduction. A similar trend was seen in the diluted loss per share. Despite these setbacks, Goodfood maintained a gross margin of 42.6% and an adjusted EBITDA of CAD 1.4 million, emphasizing effective cost management [1][3].
Strategic Initiatives and Market Reaction
Goodfood’s strategic focus on its ‘Heat and Eat’ meal offerings, which have launched successfully in key markets, and B Corp certification underscore its commitment to sustainability and innovation. The company’s acquisition of Genuine Tea performed strongly, augmenting the brand’s market presence. However, the overall decline in active customers, dropping to 84,000 from 117,000 year over year, coupled with macroeconomic headwinds, posed significant challenges [2][4][5].
Future Outlook and Strategic Focus
Looking ahead, Goodfood aims to stabilize its active customer base and enhance product lineups to recover its market position. The company is planning to expand its ‘Heat and Eat’ product range and streamline operations by focusing on in-house production to better manage costs and improve margins. Additionally, the management highlights a balanced approach in capital allocation and a commitment to leveraging acquisitions for strategic growth [3][5].