The home meal solutions space has been challenging for some, to say the least. Shares of Blue Apron (NYSE:APRN), for example, have collapsed over 80% since their initial public offering in June 2017.
In Canada, Goodfood Market Corp. (TSX:FOOD) has not suffered such a fate. In fact, with news of expansion on Thursday, the Montreal-based company hit its second highest level since it began trading publicly via a reverse takeover only weeks before Blue Apron's IPO last summer.
Goodfood Market said that it has signed a lease for an additional 72,000 square feet next to its current facility in Montreal, effectively doubling the size of its production space to 155,000 square feet. The rental agreement has a five-year term with an option for renewal. Goodfood expects to have the new space operational in 2019, but didn't provide a specific time frame.
While doubling its capacity in eastern Canada, FOOD management sees the expansion as increasing the company's national sales capacity from $300 million currently to $500 million, while facilitating additional meal options and other product offerings to its growing customer base.
As of August 31, 2018, Goodfood boasted 89,000 active subscribers, up 17% quarter-over-quarter and 187% from the same time a year earlier.
The dinner subscription upstart remains unprofitable, reporting a net loss of C$1.56 million in the quarter ended May 31, 2018, while revenue ballooned 246% year-over-year to $22.22 million.
Shares of FOOD rose as high at $3.25 in Thursday morning trading, marking the highest level since the company's first day on trading on June 7, 2017 when it briefly touched $3.50.
