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Goodfood Market Corp. (TSX:FOOD), one of the leading Canadian grocers, generated significantly high revenue in the second quarter for fiscal 2021.
The total revenue went up 71 per cent YoY to C$ 100.7 million in Q2, ended on February 28, the company said in its earnings report on Wednesday.
However, investors were not too happy with the rise in top line since the company’s net loss rose as much as 20 per cent YoY.
Its stock plunged almost 5 per cent on Wednesday, April 7.
Its cash flow from operations amounted to C$ 5.4 million in Q2 FY21, a good turnaround of C$ 9.3 million against the second fiscal quarter of 2019. The company held an all-time high available cash of C$ 163 million at the end of the quarter.
Montreal-headquartered firm’s active subscribers soared to 319,000 as of February 2021, a rise of 30 per cent YoY. Its customer numbers may increase further due to renewed shutdowns across several provinces.
Let us have a look at the essential service stock’s price performance:
Goodfood Market Corp. (TSX:FOOD)
The firm is known for its fresh meal solutions, and it operates in Ontario, Quebec, Alberta, and other Canadian regions. Its current stock price is C$ 8.08, and its market cap stands at C$ 592.40, as per details on the TMX portal.
The online grocer’s stock has grown over 95 per cent in the past one year, 2X growth as compared to the S&P TSX Retailing (Industry Group) Index, as per EODHD/Others data.
After an extraordinary 2020, the stock has now turned bearish and dropped over 33 per cent year-to-date (YTD). At the previous close price, it was trading nearly 26 per cent below its 60-day simple moving average.
The stock registered its all-time high of C$ 14.72 on January 26, 2021 but witnessed massive correction in the last two months and declined almost 45 per cent. However, it is still up around 149 per cent compared with its 52-week low of C$ 3.25 per common share (recorded on April 14, 2020).
Image Source: Kalkine Group @2020
Goodfood’s Financial Outlook For 2021
The e-grocery market’s growth accelerated amid the COVID-19 crisis. As the pandemic rages on, Goodfood expects to expand its subscribers base by investing in capacity expansion via automation and additional offerings on its digital platform.
The company is looking for long-term plans to create better shareholder wealth and compromising on short-term value creation. Therefore, it anticipates more long-term investments this year.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
