-- Goodfood Market (FOOD.TO) said Tuesday that second-quarter net loss widened as net sales fell.
The company said the results reflect the impact of a temporary Canadian Food Inspection Agency (CFIA) license suspension and a softer demand environment, which affected net sales and margins during the period.
Net loss widened to $6.8 million, or $0.07 per share, from $2.4 million, or $0.03 per share, in the prior year period.
Net sales fell 26% to $22.5 million over the same period, caused by fewer active customers and the temporary CFIA suspension in the quarter, partially offset by an increase in average order value.
"Second quarter results reflect the impact of a temporary disruption and softer demand. More importantly, CFIA clarified what needed to change-and we are acting on it decisively," said board chair and chief executive officer Selim Bassoul. "We have simplified our cost structure, reduced complexity, and refocused the business on its core economics. At the same time, we are improving our product with better quality, larger portions and greater convenience to align with what customers value most."
Goodfood shares closed up $0.01, to $0.215 on Monday on the Toronto Stock Exchange.