The Very Good Food Company reported an EPS loss of CAD 0.05 (~USD 0.04) for Q2 compared to a loss of CAD 0.13 (~USD 0.10) during the same period in 2021. Revenue decreased by 46% YoY hitting CAD 1.5 million (~USD 1.2 million) from CAD 2.8 million (~USD 2.2 million) a year ago.

Revenue guidance for 2023 was not provided but the company stated that it has refocused its strategy to “right-size and optimize”. In line with this strategy 160 staff were laid off reducing staff numbers to 100 from 260. Further, operations at Victoria, Fairview, and Patterson facilities were ceased and subsequently consolidated into the Rupert Facility. The company is also looking to focus entirely on wholesale and foodservice while dropping eCommerce sales.

The revenue decline in Q2 was driven by a 83% YoY decrease in eCommerce revenues due to a strategic decision by the company to restrict its eCommerce sales. This was partially offset by an 117% YoY increase in wholesale revenue owing to higher number of stores and distribution points coupled with increased unit velocities on core and new items.

Net loss for the period decreased to CAD 6.7 million (~USD 5.2 million) compared to CAD 12.5 million (~USD 9.7 million) in Q2 2021. This was mainly attributed to the 57% YoY decrease in general and administrative expenses.