Wow. Great financial results. FRSH is a very well run company. Management has a very successful track record.
The Fresh Factory Reports Strong Q2 Results; Momentum Accelerating in Second Half of the Year
- Second consecutive quarter of record billed revenue of $4.85M in Q2 2022 ($6.22M CAD), compared to $3.43M ($4.39M CAD) in Q2 2021, representing an increase of 41.4%.
- Year-to-date billed revenue of $8.72M ($11.2M CAD), an increase of 34.6% over H1 2021.
- Year-to-date net revenue of $8.42M ($10.79M CAD), compared to $6.09M ($7.81M CAD) in H1 2021, representing an increase of 38.3%.
CAROL STREAM, IL / ACCESSWIRE / August 29, 2022 / The Fresh Factory B.C. Ltd. (CSE:FRSH) (FRA:Q4Z) ("The Fresh Factory" or the "Company"), a mission-driven company for fresh and better-for-you food and beverage brands, reports financial results for the second quarter ending June 30, 2022.
"Our team delivered another strong quarter, reflecting The Fresh Factory's continued focus on executing our strategy to create, invest in, and accelerate the clean-label food and beverage brands of tomorrow," said Bill Besenhofer, Chief Executive Officer and co-founder of The Fresh Factory. "We continue to see a growing demand for fresh food and beverages made with recognizable, healthy ingredients. This, coupled with our innovative production capabilities and operational expertise, gives us confidence that we will continue to see momentum for the rest of 2022 and beyond. Despite challenging headwinds with the current supply chain and inflationary environment, our customers see us as a trusted partner to scale their businesses, taking them from product to shelf, and everywhere in between. Our ability to source ingredients and packaging and streamline production and distribution has been extremely well received by our current customers, as well as prospective customers who come to us to help bring their ideas to life."
Financial Highlights: H1 2022 vs H1 2021
- Record billed revenue of $8.72M ($11.2M CAD) in H1 2022 vs. $6.48M ($8.31M CAD) for H1 2021, an increase of 34.6%.
- Adjusted EBITDA decreased to $(0.93)M ($(1.19)M) CAD) in H1 2022, materially driven by additional public-company expenses and investments in staff and infrastructure for growth.
- Adjusted gross margins were $2.41M ($3.09M CAD) in H1 2022 vs. $2.22M ($2.85M CAD) in H1 2021.
Financial and Operational Highlights: Q2 2022 vs Q1 2022
- Record billed revenue of $4.85M ($6.22M CAD) in Q2 2022 vs. $3.86M ($4.95M CAD) for Q1 2022, an increase of 25.6%.
- Adjusted EBITDA of $(0.47)M ($(0.60)M CAD) in Q2 2022 was materially flat to Q1 2022.
- Adjusted gross margins were $1.37M ($1.76M CAD) in Q2 2022 vs. $1.00M ($1.28M CAD) in Q1 2022.
- As of August 24th, utilized the normal course issuer bid ("NCIB") to repurchase for cancellation 46,000 shares at a weighted-average price of $0.49 ($0.63 CAD).
Strategic Areas of Focus
The Fresh Factory is building a platform to service emerging food and beverage brands in the fresh-food sector with an emphasis on better-for-you brands. The Company has established four key areas of focus on which it will report on a quarterly basis moving forward.
Execution: Focus on safety, high-quality operations, and strong margins
- A price increase was implemented in April to partially offset inflationary pressures.
- Adjusted gross margins, on a percentage basis, grew 1% from 27% in Q1 2022 to 28% in Q2 2022.
- Operating profits increased to $0.76M ($0.93M CAD) in Q2 2022 from $0.56M ($0.71M CAD) in Q1 2022.
- Operating profit, on a percentage basis, grew from 14.6% in Q1 2022 to 15.8% in Q2 2022 on the back of volume growth and pricing action referenced above.
- The Company passed its Annual SQF Manufacturing and Quality, formerly known as SQF Level III, audit for the sixth straight year.
Growth: Invest in and grow with the right brands across diversified channels
- Revenue in Q2 2022 continues to remain broadly diversified across direct-to-consumer, quick-service restaurants, retail customers, and food-service customers.
- The Company continues to invest in technology and equipment to support growth across multiple customer segments.
- The Company produced 1.2M pounds in Q2 of 2022, a ~33% increase from Q1 2022.
- The Fresh Start program that was launched in February, continues to introduce the Company to leading edge products and partnership opportunities.
Brand Portfolio: Build meaningful equity participation in the sector
- The Company continues to invest in its two wholly owned brands, FIELD + FARMER and Element Pressed.
- The Company's wholly owned brand FIELD + FARMER announced the launch of its fresh refrigerated snack bars in 102 Costco locations across 14 Midwestern states beginning in Q3.
- The Company's wholly owned brand FIELD + FARMER's Caramelized Onion Party Dip won the Good Housekeeping 2022 Healthy Snack Award for Best Creamy Dip selected for its flavor and healthfulness.
Sustainability: Become a market leader in sustainability
- The Company continues to research and measure what it would take to become carbon neutral and/or a zero-waste production facility.
- The Company continues to compost 100% of its food waste and donate 100% of produce extras.
- The Company's wholly owned FIELD + FARMER brand donated 1% of sales each month.
The earnings news release should be read in conjunction with the Company's interim financial statements for the three and six months ending June 30, 2022, which can be found on The Fresh Factory's issuer profile on SEDAR at www.sedar.com.
For purposes of conversion, this release used $0.78 as the conversion rate from CAD to USD.
All figures in this press release are in US dollars unless otherwise stated.
About The Fresh Factory B.C. Ltd.
The Fresh Factory is a vertically integrated company focused on accelerating the growth of the fresh, clean-label, plant-based food and beverage brands of tomorrow. The Fresh Factory owns or partners with emerging brands in the plant-based space to develop, manufacture, and sell products made from fresh produce and recognizable ingredients. It operates from its centrally located manufacturing facility near Chicago, serving customers across the US. As a public-benefits corporation, The Fresh Factory is ESG-focused, driven to make a lighter, greener impact on the environment and a stronger, positive impact on local communities and the food system as a whole. Learn more about The Fresh Factory at www.thefreshfactory.coand find The Fresh Factory on social media at Instagram, Twitter, and LinkedIn. To receive news and updates about The Fresh Factory, visit their website at www.thefreshfactory.co.
Contacts
Bill Besenhofer
CEO and Co-founder
1-877-495-1638
info@thefreshfactory.co
Alyssa Barry
Media and Investor Relations
1-877-495-1638
healthyinvestors@thefreshfactory.co