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Goodfood reports record third-quarter revenue amid growing grocery selection

The company's growing grocery selection helped drive larger basket sizes and higher order frequency, says CEO

Goodfood Market Corp. reported a net loss of $2 million despite revenue rising to a record $107.8 million in its third quarter, a 24% increase compared with a year ago at the start of the pandemic.

Goodfood CEO Jonathan Ferrari said the results were strong given the same quarter in 2020 had been positively impacted by pandemic demand.

"Our impressive third-quarter results reflected the benefits of our leading and differentiated ready-to-cook offering, growing grocery selection and same-day fulfilment capabilities in key markets," he said in a statement Wednesday.

Those improvements drove larger basket sizes and higher order frequency from increasingly loyal customers, Ferrari said.

But the online grocery company's positive growth continued to be impacted by investments in people, processes and technology, he said.

The Montreal-based online grocery and meal-kit company said its loss amounted to three cents per diluted share for the quarter ended May 31.

The result compared with a profit of nearly $2.8 million or five cents per diluted share on $86.6 million in revenue in its third quarter last year.

Goodfood announced last month the lease of its first tech-enabled fulfillment centre in Ottawa with automation capable of delivering 4,000 products on a same-day basis.

"I am pleased with the progress we continue to make as evidenced by the expansion to 970 grocery products, the launch of the new Goodfood mobile application, and the recent announcement of our first local fulfillment centre in Ottawa, which will allow us to offer same-day delivery in a third major Canadian market," Ferrari said.

Meanwhile, the company said a decrease in incentives and credits used to encourage consumers to try Goodfood's meal kits contributed to higher revenue.

Goodfood also said its automated fulfillment centres and improvements to its "last-mile delivery capabilities" helped lower shipping and other production costs.

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