Goodfood Market Corp. · TSX:FOOD
Goodfood Market — FY2018 Earnings Presentation
24 slides from Goodfood Market's earnings presentation, Nov 22, 2018
Slide 1: Fiscal 2018 and Q4 Results
FISCAL 2018 AND Q4 RESULTS TSX: FOOD JONATHAN FERRARI, CHIEF EXECUMIVE OFFICER NElk CUGGY, PRESIDENT AND CHTEF OPERATING OFFICER PHILIPPE ADAM, CHIEF FINANCIAL OFFICER goodfood
Slide 2: 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", "intends", "contemplates", "anticipates",
Slide 3: FY2018 Highlights
FY2018 HIGHLIGHTS —, Strong consistent growth in subscribers (187%) and gross — merchandise sales (264%) Gross merchandise sales run-rate reached $107.3 million as at August 31, 2018 = Positive cash flow from operations of $300,000 for the year after two consecutive quarters of positive cash flow ac
Slide 4: Active subscribers and quarterly growth
100,000 80.0 89,000 70.5 90,000 70.0 80,000 76,000 60.0 70,000 61,000 60,000 50.0 50,000 45,000 40.0 40,000 30.0 31,000 22.2 21.4 30,000 23,000 19.8 20.0 15.7 20,000 13,000 11.2 8,000 10.0 6.4 7.5 10,000 2.2 3.7 0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2017 2017 2017 2017 2018 201
Slide 5: Gross merchandise sales and run-rate
120 107.3 100 84.1 80 60 40 26.2 25.8 18.8 20 13.3 8.7 0 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Aug. 31, 2018 Run- rate Gross merchandise sales measures the total retail value of all goods sold by the Company before taking into account all incentives and credits. For a reconciliation of gro
Slide 6: Successful launch of national platform
Successful launch State-of the art Further expansion Record adjusted of national facility in Calgary - of Montreal facility gross margin of platform bringing national 33.6% for the year $100 million in sales capacity to sales capacity $500 million+ 5
Slide 7: Expansion of choice and Easy Prep launch
• Expansion of choice catering to wide variety of taste o Created over 750 new recipes throughout the year o Now offering 23 recipes per week, the largest selection in the industry o Added 10 weekly options for members • Launched Easy Prep plan o Fueling subscribers and revenue growth • Targeting pr
Slide 8: Strategic priorities
Maintain market Grow subscriber Continue to improve Continue to leadership base consumer improve gross experience through margin through customized meal automation and solutions economies of scale 7
Slide 9: Estimated TAM by meal category
$3,000 $2,000 $1,300 $1,400 $1,150 $250+ READY TO PREPARED SNACK COOK BREAKFAST DESSERT MEALS FOOD DINNER 40% 25% 20% 20% 20% 1Estitmated TAM in 2025; Source: Statista – Consumer Market Outlook, Nielsen, management estimates 8
Slide 10: Q4 active subscribers
100,000 80 89,000 70.5 90,000 70 80,000 60 70,000 60,000 50 50,000 40 40,000 30 31,000 30,000 21.4 19.8 20 20,000 10 7.5 10,000 0 0 Q4 2017 Q4 2018 Q4 FY 2017 2018 An Active subscriber is defined as an account that is scheduled to receive a delivery or has elected to skip delivery in the subsequent
Slide 11: Gross merchandise sales and adjusted gross margin
90 84.1 40.0% 35.0% 80 35.0% 33.6% 70 29.8% 30.0% 60 25.5% 25.0% 50 20.0% 40 15.0% 30 25.8 23.1 20 10.0% 8.7 5.0% 10 0 0.0% Q4 FY Q4 FY 2017 2018 2017 2018 Gross merchandise sales measures the total retail value of all goods sold by the Company before taking into account all incentives and credits.
Slide 12: Revenue and gross profit
16.0 25.0% 14.7 21.5% 14.0 20.8% 20.0% 12.0 18.1% 10.0 15.0% 13.4% 8.0 10.0% 6.0 4.6 4.0 3.6 5.0% 2.0 1.0 0.0 0.0% Q4 FY Q4 FY 2017 2018 2017 2018 11
Slide 13: Adjusted EBITDA margin
35.0% 30.0% (29.0%) 25.0% 20.0% (17.9%) 15.0% (12.4%) (12.1%) 10.0% 5.0% 0.0% Q4 FY 2017 2018 Adjusted EBITDA margin is calculated as adjusted EBITDA, divided by revenue. For the definition and calculation of adjusted EBITDA, as well as a reconciliation of net loss to adjusted EBITDA, refer to the C
Slide 14: Adjusted net loss
12 10.0 9.3 9.9 9.0 10 9.4 8.0 7.0 8 6.0 6 5.0 3.8 3.8 4.0 4 2.9 3.0 3.0 2.3 2.0 2 1.0 0 0.0 Q4 FY Q4 FY 2017 2018 2017 2018 Adjusted net loss is defined as net loss adjusted for items that Management believes do not necessarily arise as part of the Company’s normal day-to day operations to better a
Slide 15: Sequential active subscribers
100,000 25 89,000 22.2 90,000 21.4 76,000 20 80,000 70,000 60,000 15 50,000 40,000 10 30,000 20,000 5 10,000 0 0 Q3 2018 Q4 2018 Q3 2018 Q4 2018 An Active subscriber is defined as an account that is scheduled to receive a delivery or has elected to skip delivery in the subsequent weekly delivery cyc
Slide 16: Sequential gross merchandise sales and margin
30.0 40.0% 26.2 25.8 34.9% 35.0% 35.0% 25.0 30.0% 20.0 25.0% 15.0 20.0% 15.0% 10.0 10.0% 5.0 5.0% 0.0 0.0% Q3 2018 Q4 2018 Q3 2018 Q4 2018 Gross merchandise sales measures the total retail value of all goods sold by the Company before taking into account all incentives and credits. Adjusted gross pr
Slide 17: Sequential revenue and margin
6.0 25.0% 23.3% 5.2 21.5% 5.0 4.6 20.0% 4.0 15.0% 3.0 10.0% 2.0 5.0% 1.0 0.0 0.0% Q3 2018 Q4 2018 Q3 2018 Q4 2018 16
Slide 18: Sequential cash flow and metrics
2.0 30.0 1.8 1.8 24.5 25.0 24.0 1.6 1.4 20.0 1.2 1.0 1.0 15.0 0.8 0.6 10.0 0.4 0.3 5.0 0.2 0.0 0.0 Q3 2018 Q4 2018 FY 2018 Q3 2018 Q4 2018 17
Slide 19: Sequential adjusted EBITDA and net loss
14.0% 3.5 (12.4%) 3.0 12.0% 3.0 10.0% 2.5 8.0% 2.0 1.6 (5.8%) 6.0% 1.5 4.0% 1.0 2.0% 0.5 0.0% 0.0 Q3 2018 Q4 2018 Q3 2018 Q4 2018 Adjusted EBITDA margin is calculated as adjusted EBITDA, divided by Adjusted net loss is defined as net loss adjusted for items that Management revenue. For the definitio
Slide 20: Question Period
Slide 21: Appendix
Slide 22: Management team
JONATHAN FERRARI NEIL CUGGY PHILIPPE ADAM, CPA, CA, CBV • • • • ’ • ’ • • • • • • 21
Slide 23: Board of directors
HAMNETT HILL DONALD OLDS GUY LEBLANC • • • • • • • • • • “ ” • • 22
Slide 24: Company contact
COMPANY CONTACT INVESTOR RELATIONS Philippe Adam, Chief Financial Officer 1 (855) 515-5191 IR@makegoodfood.ca