Goodfood Market Corp.

Good morning, ladies and gentlemen, and welcome to the Good Food Q1 of Fiscal 2025 Earnings Call-In Webcast. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question and answer session. 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 here in 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, January 21st 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 two of the presentation. Please be aware that during the call, presenters will refer to certain metrics and non-IFRS measures where possible. These measures are identified and reconciled to the most comparable IFRS measures in our MD&A. Finally, let me remind you that all figures expressed on today's call are in Canadian dollars unless otherwise stated. I would now like to turn the meeting over to your host for today's call, Jonathan Ferrari, Good Food Chief Executive Officer. Mr. Ferrari, you may proceed.

Thank you.

Bonjour à tous et bienvenue à l'appel conférence de marché Good Food pour présenter nos résultats financiers du premier trimestre de l'exercice 2025, clos le 7 décembre. Good morning, everyone, and welcome to this call for Good Food Market Corp. to present our financial results for the first quarter of fiscal 2025, ended December 7th. I'm joined on the call today by Neil, Good Foods President and Chief Operating Officer, and Ross, Chief Financial Officer. This morning, we announced our Q1 results. You can find our press release and presentation on our website at CDAR+. All figures in today's call are in Canadian dollars, unless otherwise noted. Let's start with slide three. I'm pleased to report that Q1 marked our eighth consecutive quarter of positive adjusted EBITDA. Adjusted EBITDA for the quarter reached $1.6 million, representing a margin of 4.7%, an improvement of 110 basis points year over year. This performance is a testament to our ability to consistently grow profitability, even amid challenging macroeconomic conditions. Our focus on cash flow generation also continues to deliver results. Adjusted free cash flow for the quarter stood at $1.9 million, making this the fifth quarter in the past eight with positive cash flow. Importantly, this consistent cash flow generation has allowed us to maintain a net leverage ratio around the 2.5 turns mark. Late this quarter, we also closed the Genuine T acquisition. the first step in our strategy of acquiring and growing a portfolio of next-generation brands. The business continues to perform well, and this first acquisition has opened doors since as we look to continue executing on our M&A growth strategy by developing a platform of profitable, growing brands. Lastly, a week ago, we announced our Bitcoin Treasury Investment Strategy, which aims to create shareholder value by strengthening our balance sheet, hedging against inflation, and the rise of food costs. Overall, with a strong foundation of financial discipline, innovative customer offerings, and a roadmap for growth, we are equipped to navigate the current consumer spending challenges and continue strengthening our balance sheet.