Goodfood Market Corp. · TSX:FOOD
Goodfood Market — Investor Presentation (April 2022)
27 slides from Goodfood Market's investor presentation, April 2022
Slide 1: April Investor Presentation 2022
APRIL INVESTOR PRESENTATION 2022
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking Forward-looking information is based upon a number of assumptions This is not an exhaustive list of risks that may affect the Company’s information” within the meaning of applicable Canadian securities and is su
Slide 3: Our Mission and Vision
OUR MISSION To simplify meal planning and grocery shopping for all OUR VISION To be in every kitchen every day by enabling customers to complete their grocery shopping and meal planning in minutes
Slide 4: Our Evolution: Rapid Growth Supported by National Footprint and Brand Awareness
OUR EVOLUTION RAPID GROWTH SUPPORTED BY NATIONAL FOOTPRINT AND STRONG BRAND AWARENESS REVENUE SUBSCRIBERS (1) C$ MILLIONS $379 163% CAGR $285 151% CAGR 298,000 280,000 $161 200,000 $71 $3 $20 89,000 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 31,000 3,000 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FACI
Slide 5: Our Products: Grocery and Meal Solutions
OUR PRODUCTS GROCERY AND MEAL SOLUTIONS OFFERING TO MEET CANADIANS’ FULL MEAL PLANNING NEEDS GROCERY MEAL SOLUTIONS MEAL KITS PREPARED FOODS Goodfood has built an exclusive selection of Goodfood-branded grocery products and meal solutions that enable customers to make a full basket shop and pay at-
Slide 6: Looking Forward: Goodfood's Strategy
LOOKING FORWARD: Goodfood’s strategy anchored in building momentum in its flywheel 246,000 active customers (1) & 1 Grow Customer Base 27,000 on-demand active customers (1) • Grow on-demand customers Increase Profit per • Grow Canadians’ spend 6 with Goodfood Customer • Operating leverage and Grow f
Slide 7: Looking Forward: Our Key Value-Creating Drivers
LOOKING FORWARD: OUR KEY VALUE-CREATING DRIVERS Grow Goodfood on-demand shoppers Grow on-demand active customers (1) and market share Continuing to increase penetration through on-demand catalyst to grow orders Support growth with differentiated, increasing selection Grow micro fulfilment centre foo
Slide 8: The Digitization of Grocery Opportunity in Canada
THE DIGITIZATION OF GROCERY OPPORTUNITY IN CANADA $142 B (1) 5% - 8% (2) CURRENT ONLINE $30B GROCERY MARKET LIKELY <$10B, WITH MARKET SIZE GROCERY TAM CURRENT POTENTIAL WITH ONLINE DELIVERY A SMALLER 20% OF GROCERY IN CANADA GROCERY PORTION SHOPPING PENETRATION MOVING ONLINE THE CATALYSTS TO REACHIN
Slide 9: Reinventing the Grocery Experience
REINVENTING THE GROCERY EXPERIENCE TRADITIONAL GROCERY : 60 -120 MINUTES identify need > plan > physical trip to store > go through aisles > queue > trip back home 1ST GENERATION ONLINE GROCERY : 120 MINS – 2 DAYS identify need > plan > visit multiple platforms > select delivery > wait > wait receiv
Slide 10: Goodfood Is Uniquely Positioned to Win
GOODFOOD IS UNIQUELY POSITIONED TO WIN GOODFOOD HAS THE ONLY PURPOSE-BUILT VERTICALLY INTEGRATED GROCERY AND MEAL SOLUTIONS NETWORK IN CANADA AND IS READY TO PROFITABLY DOMINATE THE ONLINE GROCERY MARKET DIFFERENTIATED PRODUCT OFFERING ATTRACTIVE PRICING DIGITAL STORE BRAND AWARENESS PHYSICAL FOOTPR
Slide 11: Differentiated Product Offering at Market Prices
UNIQUELY POSITIONED TO WIN DIFFERENTIATED PRODUCT OFFERING AT MARKET PRICES CHOCOLATE & BAKERY BEER & WINE (19+) CARDS & GIFTS CHEESE CANDY $68 ON-DEMAND CURRENT BASKET AVERAGE SIZE WITH FAVORABLE MIX COFFEE & TEA DRINKS DAIRY & EGGS DESSERTS FISH & SEAFOOD MEAL KITS GROCERY 32% PRODUCTS= FRUITS & M
Slide 12: Our Seamless Digital Store
UNIQUELY POSITIONED TO WIN OUR SEAMLESS DIGITAL STORE GOODFOOD’S MOBILE APP ~221,000+ downloads and 4.6-star rating HAS SIMPLIFIED CUSTOMERS’ SHOPPING Platform now open to non-subscribers EXPERIENCE AND ORDERING PROCESS 12
Slide 13: Viral Growth of Goodfood's Brand
VIRAL GROWTH OF GOODFOOD’S BRAND I didn’t understand how you could offer a delivery grocery service you could just order one thing. We ran out of coffee cream so I thought ok, I’ll order more cream. Then I filled my basket with 24 more items. I get it now. 13
Slide 14: Physical Footprint of Hub & Spoke Enables Rapid Delivery
UNIQUELY POSITIONED TO WIN PHYSICAL FOOTPRINT OF HUB & SPOKE ENABLES RAPID DELIVERY AT STRONG ECONOMICS Larger radius of delivery from MFC enabled by Weekly Subscription delivery volume and brand awareness MICRO MICRO MICRO MICRO FULFILMENT FULFILMENT FULFILMENT FULFILMENT CITY 1 CENTER CENTER CENTE
Slide 15: Growing On-Demand MFC Footprint
UNIQUELY POSITIONED TO WIN GROWING ON-DEMAND MFC FOOTPRINT, ON TRACK TO PROFITABLY DOMINATE TORONTO AND MONTREAL MFC ROLL-OUT STRATEGY: MFC ROLL-OUT STRATEGY: BUILDING COVERAGE DENSITY TO INCREASE DPH MFC MFC MFC MFC Capex light coverage to capture Increase density to increase deliveries customers a
Slide 16: Rapid Order Growth Demonstrates Path to Strong Unit Economics
UNIQUELY POSITIONED TO WIN RAPID ORDER GROWTH DEMONSTRATES PATH TO STRONG UNIT ECONOMICS ON-DEMAND SHOPPER GROWTH ORDERS MOVING 7-DAY AVERAGE $34M +14% Active Customers ARR WEEK OVER Orders WEEK GROWTH 1 8 15 22 29 36 43 50 57 64 71 78 85 92 99 106 113 120 1 8 15 22 29 36 43 50 57 64 71 78 85 92 99
Slide 17: Superior Average Order Value and Order Retention
UNIQUELY POSITIONED TO WIN SUPERIOR AVERAGE ORDER VALUE AND ORDER RETENTION DRIVING UNIT ECONOMICS ON-DEMAND AOV STRONG ON-DEMAND COHORT ORDER RETENTION (Sales before incentives per order) (Orders placed by initial November cohort) $60-70 100% 80%+ $30-35 $30-35 $25-30 Goodfood Comp. 1 Comp. 2 Comp.
Slide 18: Unit Economics in Capex Light Business
UNIQUELY POSITIONED TO WIN UNIT ECONOMICS IN CAPEX LIGHT BUSINESS TO DRIVE SIGNIFICANT RETURNS ILLUSTRATIVE UNIT ECONOMICS AT SCALE DRIVE DENSITY AND FOCUS: DELIVERIES PER HOUR Average order value $65+ WITH INITIAL CAPEX Incentives, net of membership and service fees (2.00) AND STARTUP COSTS Net ord
Slide 19: Capex Light Business Model
CAPEX LIGHT BUSINESS MODEL ON-DEMAND LOW CAPEX STRATEGY <$500K <$40 CAPEX PER MILLION $ OF MFC CAPEX LOW CAPEX 50+ $1 BILLION+ MFCS BY SALES CAPACITY REQUIRED 2025 to build network supporting BY 2025 $1 billion+ of sales capacity by 2025 at significantly lower capital requirement than a brick-and-mo
Slide 20: Long-Term Profitability Goals Remain Intact
LONG-TERM PROFITABILITY GOALS REMAIN INTACT CURRENT FUTURE PROFITABILITY TARGET EBITDA MARGIN OF PROFITABILITY ~10-15% AT FULL SCALE ~24% INCREASE OPERATING ECONOMIES 25-30% GROSS EFFICIENCIES AND DENSITY GROSS MARGIN OF SCALE MARGIN LOWER MARKETING AND ~42% G&A FIXED COSTS % OF SALES ~15-20% SG&A S
Slide 21: Goodfood's Commitment to Making a Difference
GOODFOOD’S COMMITMENT TO MAKING A DIFFERENCE Priority ESG Select examples Topics ▪ Food and greenhouse gas ✓ Meal kits benefit from 33% lower greenhouse emissions than grocery meals due to lower waste factor (1) management ✓ E On-demand delivery is done using recyclable paper bags and eco-friendly m
Slide 22: Management Team and Board of Directors
MANAGEMENT TEAM AND BOARD OF DIRECTORS Dedicated and proven management supported by experienced board of directors together holding ~40% of the company MANAGEMENT TEAM BOARD OF DIRECTORS JONATHAN FERRARI NEIL CUGGY JONATHAN ROITER BIPASHA CHIU HAMNETT HILL DONALD OLDS Co-Founder, Chairman & CEO Co-F
Slide 23: Metrics & Non-IFRS Financial Measures
METRICS & NON-IFRS FINANCIAL MEASURES The table below defines metrics and non-IFRS financial measures used by Accordingly, they should not be considered in isolation nor as a substitute the Company throughout this presentation. Non-IFRS financial measures do for analysis of our financial information
Slide 24: Appendix
APPENDIX
Slide 25: Typical Seasonality Patterns
TYPICAL SEASONALITY PATTERNS Q1 Q2 Q3 Q4 SEPT-OCT-NOV DEC-JAN-FEB MAR-APR-MAY JUNE-JULY-AUG MARKETING Higher Higher Medium Low CAMPAIGNS ORDER RATES Higher High Medium/High Low NEW SUBSCRIBERS Higher High Medium/High Low MARGINS Higher Lower Higher Lower CASH FLOW FROM OPERATIONS Positive for the pe
Slide 26: Company Contact – Investor Relations & Media
COMPANY CONTACT – INVESTOR RELATIONS & MEDIA JONATHAN ROITER ROSLANE AOUAMEUR Chief Financial Officer Vice President, Corporate Development 1 (855) 515-5191 1 (855) 515-5191 IR@makegoodfood.ca IR@makegoodfood.ca
Slide 27: makegoodfood.ca
MAKEGOODFOOD.CA