Is Goodfood (TSX:FOOD) a penny stock worth exploring after Q1 results?

2 min read | January 19, 2022 01:52 AM AEDT | By Raza Naqvi

Is Goodfood (TSX:FOOD) a penny stock worth exploring after Q1 results? — Image source: © Embe2006 | Megapixl.com

Goodfood's (TSX:FOOD) performance in Q1 2022

Goodfood's financial result indicates that the company is progressing, and its gross margin increased by 24 per cent quarter-over-quarter (QoQ).

Notably, the company's on-demand active customers were increasing and reached 13,000. Since the launch of quick-commerce delivery, the active customers have registered a growth of 50 per cent.

Goodfood claims that Canadians prefer its 30-minute grocery offering, and it has surpassed C$ 21 million annual run-rate sales, excluding credits and incentives.

The company has launched its third local micro fulfilment centre in Toronto and expects to launch three more by the end of March 2022.

In Q1 2022, the adjusted EBITDA margin was a negative 18.7 per cent, an improvement from a negative 22.4 per cent in Q4 2021.

Also Read: Will Air Canada (TSX:AC) stock fly past pre-pandemic levels in 2022?

Meanwhile, the net loss widened to C$ 21.6 million from C$ 3.1 million in Q4 2021.

Bottom line

Established in 2014, Goodfood was started as an online grocery company in Canada. It now offers fresh meal solutions and groceries to its customers.

The company seems to have growth potential as it has a unique feature of offering its customers to easily complete their weakly meal planning and grocery shopping within minutes.

Also Read: 5 Canadian bluechip stocks to buy in 2022

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.