Goodfood Market Corp. · TSX:FOOD
Goodfood Market — Q4 2019 Earnings Presentation
20 slides from Goodfood Market's earnings presentation, Nov 14, 2019
Slide 1: Q4 & Fiscal Year 2019
Q4 & FISCAL YEAR 2019 NOVEMBER 14, 2019
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS This presentation may include forward-looking statements regarding Goodfood, its business, operations or results. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled
Slide 3: Goodfood's Typical Seasonality Patterns
GOODFOOD’S TYPICAL SEASONALITY PATTERNS Q1 Q2 Q3 Q4 Sept-Oct-Nov Dec-Jan-Feb Mar-Apr-May June-July-Aug Marketing campaigns Higher Higher Medium Low Order rates Higher High Medium/High Low New subscribers Higher High Medium/High Low Margins Higher Lower Higher Lower Cash flow from Positive for the pe
Slide 4: Q4-2019 & Fiscal 2019 Key Highlights
Q4-2019 & FISCAL 2019 KEY HIGHLIGHTS Continue to deliver strong triple-digit growth on key metrics for the fourth quarter and the year (in millions of Canadian $ except active subscribers and margins) Q4-19 Q4-18 Y-o-Y FY19 FY18 Y-o-Y Active subscribers (1) 200,000 89,000 125% 200,000 89,000 125
Slide 5: Fiscal 2019 Operational Highlights – New Launches
FISCAL 2019 OPERATIONAL HIGHLIGHTS – NEW LAUNCHES Launched new product offerings to enhance member experience and expand market reach • Launched private label grocery products nationwide • Launched breakfast meal solutions and recently expanded product offering to 27+ unique products • Launched read
Slide 6: Goodfood in the Future of Online Grocery in Canada
GOODFOOD IN THE FUTURE OF ONLINE GROCERY IN CANADA PRIVATE LABEL READY-TO-COOK BREAKFAST READY-TO-EAT GROCERY ITEMS • Core initial product of • Over 75 Goodfood branded • 18 creative flavors of • Pilot testing in Quebec and Goodfood products offered to members smoothies Alberta, expanding countrywid
Slide 7: New Product Offering Has Expanded Target Addressable Market
NEW PRODUCT OFFERING HAS EXPANDED TARGET ADDRESSABLE MARKET Large addressable markets… …driven by positive secular growth trends and low penetration FOOD GROCERY 21% and 1-2% RETAIL(1) 21% CAGR in Canadian online grocery market through 2023 (5) and only 1-2% $124 billion penetration of online grocer
Slide 8: Fiscal 2019 Operational Highlights – Capacity Expansion
FISCAL 2019 OPERATIONAL HIGHLIGHTS – CAPACITY EXPANSION WESTERN CANADA EASTERN CANADA Continued capacity expansion to reach $750M in Capacity to serve Capacity to serve sales potential across 4 facilities countrywide 150-200K subscribers (1) 300-400K subscribers (1) • Expanded main Montreal facility
Slide 9: Active Subscribers
Q4-2019 & FISCAL 2019 ACTIVE SUBSCRIBERS (1) Active subscribers (1) reached the 200,000 mark, a 125% year-over-year growth, with ~1.5% of Canadians now using Goodfood Active Subscribers (1) End of period +125% 200,000 189,000 89,000 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 (1) This is a metric or non-IFRS meas
Slide 10: Revenue
Q4-2019 & FISCAL 2019 REVENUE More than doubled revenue year-over-year Revenue by Quarter FY Revenue C$ millions C$ millions +112% $49.9 $161.3 $45.3 +129% $21.4 $70.5 Seasonally weakest quarter of the year Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 F2018 F2019 10
Slide 11: Gross Merchandise Sales and GMS Run-Rate
Q4-2019 AND FISCAL 2019 GROSS MERCHANDISE SALES (1) AND GMS RUN-RATE (1) GMS (1) also more than doubled, surpassing the $200M mark for the first time at the end of the year Gross Merchandise Sales (1) by Quarter FY Gross Merchandise Sales (1) C$ millions and GMS Run-Rate (1) C$ millions +117% +139%
Slide 12: Gross Profit
Q4-2019 & FISCAL 2019 GROSS PROFIT Margins increased significantly due to investments in automation, operational efficiencies, increased density among delivery zones and purchasing power Gross Profit by Quarter FY Gross Profit $18.0 C$ millions and % $50.0 C$ millions and % 31.0% 31.0% $16.0 $45.0 $
Slide 13: Adjusted Gross Profit
Q4-2019 & FISCAL 2019 ADJUSTED GROSS PROFIT (1) Margins broke through the 40% barrier in the second half of the year Adjusted Gross Profit (1) by Quarter FY Adjusted Gross Profit (1) $30.0 C$ millions and % $100.0 C$ millions and % 44.0% 44.0% $90.0 $25.4 $79.8 $25.0 42.0% 42.0% $22.8 $80.0 41.6% 40
Slide 14: Adjusted EBITDA and Margin
Q4-2019 & FISCAL 2019 ADJUSTED EBITDA (1) AND MARGIN (1) Substantial Adjusted EBITDA margin(1) improvement while still investing in market share leadership and scale Adjusted EBITDA (1) Loss by Quarter FY Adjusted EBITDA (1) Loss $7.0 C$ millions and % 20.0% $20.0 C$ millions and % 30.0% 18.0% $18.0
Slide 15: Net Loss
Q4-2019 & FISCAL 2019 NET LOSS In FY2019, Goodfood continued to invest in market share leadership, scale and density which delays short-term earnings but maximizes longer term shareholder value Net Loss by Quarter FY Net Loss C$ millions C$ millions $8.0 $7.0 $25.0 $5.9 $20.9 $6.0 $20.0 $5.0 $15.0 $
Slide 16: Cash Flow Provided by Operations
Q4-2019 & FISCAL 2019 CASH FLOW PROVIDED BY OPERATIONS The execution of Goodfood’s strategy culminated in a second consecutive year in of row of positive cash flow from operations CFO by Quarter FY CFO C$ millions C$ millions $1.0 $0.9 $2.4 $0.8 $0.7 $0.9 $0.9 4x+ CFO $0.6 year-over- $0.5 year $0.4
Slide 17: Capital Expenditures
Q4-2019 & FISCAL 2019 CAPITAL EXPENDITURES The Company continued to invest in its growth and the launch of new and innovative meal solutions CAPEX by Quarter FY CAPEX C$ millions C$ millions $2.8 $7.6 Investments in automation & capacity $4.4 expansion $1.5 $0.4 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 F2018 F
Slide 18: Q&A
Q &A 18
Slide 19: Metrics and Non-IFRS Financial Measures
METRICS AND NON-IFRS FINANCIAL MEASURES Goodfood reports its financial results in accordance with International Financial Reporting Standards ("IFRS"). Goodfood also uses non-IFRS measures in this presentation that do not have any standardized meaning prescribed by IFRS, including gross merchandise
Slide 20: Company Contact – Investor Relations
COMPANY CONTACT – INVESTOR RELATIONS Philippe Adam, Chief Financial Officer Roslane Aouameur, Director Investor Relations 1 (855) 515-5191 1 (855) 515-5191 IR@makegoodfood.ca IR@makegoodfood.ca