Net sales of $39 million in the third quarter, with gross profit of $17 million and gross margin of 44.0% Net income of $0.3 million for the quarter and adjusted EBITDA margin1 of 9.2% for an adjusted EBITDA1 of $4 million Cash flows provided by operations of $4 million and adjusted free cash flow1 of $4 million for the quarter, with cash balance surpassing $26 million after $3 million debt repayment year-to-date2 Customer centricity remains at the core of our strategy: roll out of new recipes, additional customization, family experiences and new value recipes MONTREAL, July 16, 2024 (GLOBE NEWSWIRE) -- Goodfood Market Corp. ("Goodfood" or "the Company") (TSX:FOOD), a leading Canadian online meal solutions company, today announced financial results for the third quarter of Fiscal 2024, ended June 1, 2024. "The third quarter of Fiscal 2024 proved operationally strong again as we generated net income and consistent Adjusted EBITDA1 and Adjusted Free Cash Flow1 growth. For the last twelve months, our cash flows provided by operations reached $7 million and our Adjusted EBITDA1 and Adjusted Free Cash Flow1 reached $9 million and $8 million, respectively, a testament to our teams' focus on growing profitability and cash flows. With Adjusted EBITDA1 positive for the sixth consecutive quarter and Adjusted Free Cash Flow1 positive for a third quarter in a row, we continue to optimize our capital structure and further de-leverage, with net leverage3 now at a manageable 2.1X, positioning us to consider various capital allocation options as we strive to generate growth and enhance shareholder value," said Jonathan Ferrari, Chief Executive Officer of Goodfood. "We are energized by the consistent strengthening of our profitability, cash flows and overall financial position. With our strengthened financial position, we enter the fourth quarter, which is typically marked by a seasonal slowdown in business activity as customers spend more time outside of their homes, with the opportunity to build additional momentum on the implementation of our intrinsic and external growth plan. We are indeed equally as energized by the launch of new value meals which provide our raving fans with more delicious options at various price points, and by the launch of Camp Goodfood, a set of recipes that introduce the joys of cooking to everyone in the family. Combined with more partnerships and Canadian flavor on the menu like the recent collaboration with celebrity chef Laurent Dagenais, our current and future customer-centric initiatives are beginning to show promising results as we enter the home stretch before Fiscal 2025," concluded Jonathan Ferrari. RESULTS OF OPERATIONS – THIRD QUARTER OF FISCAL 2024 AND 2023 The following table sets forth the components of the Company's interim condensed consolidated statement of income and comprehensive income: (In thousands of Canadian dollars, except per share and percentage information) For the 13 weeks periods ended June 1, 2024   June 3, 2023   ($ ) (% )   Net sales $ 38,561   $ 42,139   $ (3,578 ) (8 )%   Cost of goods sold   21,612     24,853     (3,241 ) (13 )%   Gross profit $ 16,949   $ 17,286   $ (337 ) (2 )%   Gross margin   44.0 %   41.0 %   N/A   3.0 p.p.   Selling, general and administrative expenses   13,700     14,545     (845 ) (6 )%   Depreciation and amortization   1,729     2,206     (477 ) (22 )%   Reorganization and other related costs   –     370     (370 ) N/A   Net finance costs   1,213     1,329     (116 ) (9 )%   Net income (loss), being comprehensive income (loss) $ 307   $ (1,164 ) $ 1,471   N/A   Basic and diluted income per share $ –   $ (0.02 ) $ 0.02   N/A   VARIANCE ANALYSIS FOR THE THIRD QUARTER OF 2024 COMPARED TO THIRD QUARTER OF 2023 The decrease in net sales is primarily driven by the decrease in the number of active customers, as we focus on customers providing stronger unit economics, partially offset by an increase in average order value as a result of price optimizations, increased variety in the meal-kit offering and a focus on meal-kit offerings with ready-to-eat meal solutions and grocery products as add-ons. The decrease in gross profit primarily resulted from a decrease in net sales as well as higher credit and incentives as a percentage of sales mostly offset by lower production and fulfilment costs driven by improved inventory management reducing waste, lower production labour cost and last-mile shipping costs as well as price optimizations. Gross margin increased mainly due to operational efficiencies driving lower production and fulfilment costs as a percentage of net sales, as well as pricing optimization, partially offset by an increase in credits and incentives as a percentage of net sales. The decrease in selling, general and administrative expenses is primarily due to lower wages and salaries primarily resulting from the Company's costs saving initiatives. Selling, general and administrative expenses as a percentage of net sales increased from 34.5% to 35.5% mainly due to one-time favorable lease and other contract adjustments that occurred in the third quarter of Fiscal 2023, and lower net sales. The decrease in depreciation and amortization expense is mainly due to the the derecognition of a right-of-use asset and fixed assets pursuant to a sublease agreement. The improvement in net income is mainly the result of lower wages and salaries in cost of goods sold and in selling, general and administrative expenses as well as operational efficiencies reducing production and fulfilment costs. This improvement can also be explained by lower depreciation and amortization expense partially offset by a lower net sales base. RESULTS OF OPERATIONS – YEAR-TO-DATE FISCAL 2024 AND 2023 The following table sets forth the components of the Company's interim condensed consolidated statement of loss and comprehensive loss: (In thousands of Canadian dollars, except per share and percentage information) For the 39 weeks periods ended June 1, 2024   June 3, 2023   ($ ) (% )   Net sales $ 118,775   $ 131,330   $ (12,555 ) (10 )%   Cost of goods sold   68,788     80,171     (11,383 ) (14 )%   Gross profit $ 49,987   $ 51,159   $ (1,172 ) (2 )%   Gross margin   42.1 %   39.0 %   N/A   3.1 p.p.   Selling, general and administrative expenses   42,081     52,074     (9,993 ) (19 )%   Depreciation and amortization   5,502     8,831     (3,329 ) (38 )%   Reorganization and other related gains   (1,361 )   (1,280 )   (81 ) 6 %   Net finance costs   4,038