Goodfood Market Corp.

Welcome to the Good Food third quarter of fiscal year 2022 financial results conference call. At this time, all participants are in the listen-only mode. Following the presentation, we will conduct a question and answer session. As a courtesy to others, we ask that each participant limit themselves to one question and one follow-up. Instructions will be provided at that time for you to queue up for questions. Please note that questions will be taken from financial analysts only. If anyone has any difficulties hearing the conference, please press star followed by zero for operator assistance at any time. I would like to remind everyone that this conference call is being recorded today, July 13, 2022, at 8 a.m. Eastern Time. Furthermore, I would like to remind you that today's presentation may contain forward-looking statements about Good Food's current and future plans, expectations and intentions, results, level of activity, performance, goals or achievements, or other future events or developments. As such, please take a moment to read the disclaimer on forward-looking statements on slide 2 of the presentation. I would now like to turn the meeting over to your host for today's call, Jonathan Ferrari, Good Food Chief Executive Officer. Please go ahead, sir.

Thank you. Bonjour à tous et bienvenue à l'appel conférence de marché Good Food. Good morning, everyone, and welcome to this call for Good Food Market Corp. to present our financial results for the third quarter of fiscal 2022, ended this June 4th. I'm happy to be joined on the call today by Neil Caggy, Good Foods President and Chief Operating Officer, and Jonathan Reuter, Chief Financial Officer. Our press release reporting our third quarter results was published earlier this morning. It can be found on our website at makegoodfood.ca and on CDAR. Please be aware that we will refer to certain metrics and non-IFRS measures where possible these measures are identified and reconciled to the most comparable IFRS measure in our MDMA. Finally, let me remind you that all figures expressed on today's call are in Canadian dollars unless otherwise stated. I'll now turn to slide three, which outlines the progress and developments relative to Goodfood's three key value-creating drivers. In recent calls, we outlined the three key strategic initiatives our execution is focused on and that will drive long-term shareholder value. One, we are growing on-demand active customers. Two, we are expanding our on-demand coverage and density by launching micro-fulfillment centers to further our penetration. And three, we are demonstrating our absolute commitment to profitable growth through the rigorous execution of Project Blue Ocean. Expanding on these priorities, firstly, we continue to build momentum in on-demand active customer growth as we observe these past three quarters. We now count 38,000 on-demand active customers, up 41% from the 27,000 at the end of the second quarter. As we continue to roll out our marketing initiatives and build coverage, we aim to increase both penetration of good food on-demand and the frequency of orders placed by our shoppers. Moreover, our on-demand growth continues to be supported by a broader offering as we increase the selection of our differentiated products and continue to rapidly deliver these delicious good food products. Secondly, we continue to expand our footprint of on-demand micro-fulfillment centres in the third quarter reaching a total of nine currently. We launched three new MFCs, our Low Cap Ex Micro Fulfillment Centers, in Toronto and Montreal, all strategically located near our customers' homes. These new centers allow us to both increase the availability of good food on-demand delivery, as well as augment the density of our deliveries to further enhance their unit economics, which has allowed us to reach over three deliveries per hour in multiple MFCs, and bring delivery costs to under $9 in these centers. Thirdly, and most importantly, we continue to focus on setting up good food for profitable growth with an absolute commitment to achieve consistent and significant profitability. To chart our path to profitability, we established Project Blue Ocean, a series of initiatives to return to profitability on an adjusted EBITDA basis in the first half of fiscal 2023. From that solid foundation, We will be set up to grow profitably for the years to come. Project Blue Ocean is in full swing and already yielding results. This quarter, we've improved gross margin by 220 basis points and by 330 basis points since the fourth quarter of fiscal 2021. This improvement has translated into our adjusted EBITDA improving by nearly $30 million on an annualized basis since the fourth quarter of fiscal 2021. While we are very pleased with that result, particularly in the current difficult operating conditions and extraordinary inflation environment, we are extremely focused on executing Project Blue Ocean with a clear path to profitable growth in the quarters to come.

On that note, I'll turn it over to Jonathan Reuter to review our financial performance in detail. Thank you, Jonathan, and good morning, everyone.