Innovative Food Holdings, Inc. Reports Financial Results for First Quarter 2020
First Quarter Revenue Increased 3.5% to $13.3 Million
e-commerce Revenue Up 31.6% to $2.9 Million
Recorded a Non-Cash Impairment of $1.7 million
Active and Unique e-commerce Users Increased Over 70% Compared to the Prior Year Period
Unique Multi-Channel Infrastructure Benefitting from Rapidly Evolving Market OpportunitiesBONITA SPRINGS, Fla., July 07, 2020 (GLOBE NEWSWIRE) — Innovative Food Holdings, Inc. (OTCQB: IVFH), (“IVFH” or “the Company”) an interconnected data driven platform of specialty food companies that provides chefs and consumers direct access to the highest quality unique specialty food products as well as gift boxes and other curated products across the U.S., today reported its financial results for the first quarter ended March 31, 2020. “We experienced strong e-commerce growth in the 2020 first quarter, which accelerated during the second quarter, as our e-commerce assets have been uniquely positioned to benefit from disruptive trends underway in our markets. Our in-house chefs and curation teams are working with our procurement, logistics, and marketing departments to create new products including high-quality specialty grocery products, themed specialty food kits, curated gifts, and monthly subscriptions. We are also investing in our platform to further increase customer engagement and conversion rates. During the third quarter, we expect to move into our new Pennsylvania distribution center, launch the new igourmet website featuring a modern user interface supported by Shopify, and further expand our digital marketing efforts,” stated Sam Klepfish, CEO of Innovative Food Holdings.“As restaurants start re-opening, foodservice revenue has experienced sequential monthly improvements in May and June; however, foodservice revenues have experienced unprecedented declines starting in the second half of March 2020 and the impacts of the COVID-19 pandemic continue to affect foodservice customers. Related to these declines, we recorded a non-cash $1.7 million impairment charge during the first quarter. In addition, we experienced reduced profitability in the first quarter, which included higher expenses related to the COVID-19 crisis and a less profitable mix of foodservice business due to the COVID-19 crisis, as well as continued investments in our rapidly growing e-commerce platform. Despite these near-term impacts to profitability, we saw a $0.6 million year-over-year improvement in operating cash flow during the first quarter.” “We believe our unique multi-channel infrastructure provides us with significant resources to successfully operate in the current market environment. As a result, we have seen growing interest from companies looking to leverage our e-commerce and foodservice assets. We have recently formed new relationships with large national retailers that are seeking to leverage our unique product lines and fulfillment capabilities in order to expand their specialty food offerings, which in turn has the potential to further expand our distribution channels and customer access. The COVID-19 crisis has significantly accelerated changes in consumer behavior already underway and, IVFH, like other e-commerce retailers, is seeing a paradigm shift towards digital channels. As a result, we are highly encouraged by our growing digital and direct-to-consumer presence, including our e-commerce monthly subscription offerings, our new omnichannel sales channels, and our new online products including recently developed meal kits, as well as the planned launch of igourmet’s new website and the move to our new state-of-the-art Pennsylvania distribution center,” concluded Mr. Klepfish. IVFH’s revenue increased to $13.3 million during the three months ended March 31, 2020, compared to $12.9 million for the three months ended March 31, 2019. The primary drivers of the 3.5% increase in first quarter revenue was due to over 30% year-over-year growth in the Company’s e-commerce business as well as the contribution from new logistics revenue. Deferred revenue associated with the Company’s e-commerce subscription services, which includes both Mouth and igourmet, was $0.4 million at March 31, 2020, compared to $0.3 million at March 31, 2019. The nearly 30% year-over-year increase in deferred revenue was driven by increased demand for the Company’s monthly food subscription offerings as well as an increase in gift cards sales. For the 2020 first quarter, igourmet and Mouth had over 40,000 active unique customers, an increase of over 70% from the same period last year.The following table sets forth IVFH’s revenue by business category for the three months ended March 31, 2020 and March 31, 2019 (unaudited).
e-commerce Revenue Up 31.6% to $2.9 Million
Recorded a Non-Cash Impairment of $1.7 million
Active and Unique e-commerce Users Increased Over 70% Compared to the Prior Year Period
Unique Multi-Channel Infrastructure Benefitting from Rapidly Evolving Market OpportunitiesBONITA SPRINGS, Fla., July 07, 2020 (GLOBE NEWSWIRE) — Innovative Food Holdings, Inc. (OTCQB: IVFH), (“IVFH” or “the Company”) an interconnected data driven platform of specialty food companies that provides chefs and consumers direct access to the highest quality unique specialty food products as well as gift boxes and other curated products across the U.S., today reported its financial results for the first quarter ended March 31, 2020. “We experienced strong e-commerce growth in the 2020 first quarter, which accelerated during the second quarter, as our e-commerce assets have been uniquely positioned to benefit from disruptive trends underway in our markets. Our in-house chefs and curation teams are working with our procurement, logistics, and marketing departments to create new products including high-quality specialty grocery products, themed specialty food kits, curated gifts, and monthly subscriptions. We are also investing in our platform to further increase customer engagement and conversion rates. During the third quarter, we expect to move into our new Pennsylvania distribution center, launch the new igourmet website featuring a modern user interface supported by Shopify, and further expand our digital marketing efforts,” stated Sam Klepfish, CEO of Innovative Food Holdings.“As restaurants start re-opening, foodservice revenue has experienced sequential monthly improvements in May and June; however, foodservice revenues have experienced unprecedented declines starting in the second half of March 2020 and the impacts of the COVID-19 pandemic continue to affect foodservice customers. Related to these declines, we recorded a non-cash $1.7 million impairment charge during the first quarter. In addition, we experienced reduced profitability in the first quarter, which included higher expenses related to the COVID-19 crisis and a less profitable mix of foodservice business due to the COVID-19 crisis, as well as continued investments in our rapidly growing e-commerce platform. Despite these near-term impacts to profitability, we saw a $0.6 million year-over-year improvement in operating cash flow during the first quarter.” “We believe our unique multi-channel infrastructure provides us with significant resources to successfully operate in the current market environment. As a result, we have seen growing interest from companies looking to leverage our e-commerce and foodservice assets. We have recently formed new relationships with large national retailers that are seeking to leverage our unique product lines and fulfillment capabilities in order to expand their specialty food offerings, which in turn has the potential to further expand our distribution channels and customer access. The COVID-19 crisis has significantly accelerated changes in consumer behavior already underway and, IVFH, like other e-commerce retailers, is seeing a paradigm shift towards digital channels. As a result, we are highly encouraged by our growing digital and direct-to-consumer presence, including our e-commerce monthly subscription offerings, our new omnichannel sales channels, and our new online products including recently developed meal kits, as well as the planned launch of igourmet’s new website and the move to our new state-of-the-art Pennsylvania distribution center,” concluded Mr. Klepfish. IVFH’s revenue increased to $13.3 million during the three months ended March 31, 2020, compared to $12.9 million for the three months ended March 31, 2019. The primary drivers of the 3.5% increase in first quarter revenue was due to over 30% year-over-year growth in the Company’s e-commerce business as well as the contribution from new logistics revenue. Deferred revenue associated with the Company’s e-commerce subscription services, which includes both Mouth and igourmet, was $0.4 million at March 31, 2020, compared to $0.3 million at March 31, 2019. The nearly 30% year-over-year increase in deferred revenue was driven by increased demand for the Company’s monthly food subscription offerings as well as an increase in gift cards sales. For the 2020 first quarter, igourmet and Mouth had over 40,000 active unique customers, an increase of over 70% from the same period last year.The following table sets forth IVFH’s revenue by business category for the three months ended March 31, 2020 and March 31, 2019 (unaudited).
