Real Good Food Posts Wider Loss For Q2, But Sales Rise

(RTTNews) - Real Good Food Company, Inc. (RGF), a frozen food firm, on Friday posted a wider loss for the second-quarter, mainly due to higher operating expenses and costs.

For the three-month period to June, the company registered a net loss of $14.586 million, compared with $11.110 million in loss, posted for the same period of 2022.

Pre-tax loss was at $14.586 million, compared with $11.110 million of previous year quarter.

Operating loss stood at $10.637 million, compared with $9.819 million in loss a year ago.

Cost of sales stood at $30.551 million, versus previous year's $28.458 million. Total operating expenses moved up to $15.449 million from last year's $12.170 million.

Excluding items, EBITDA loss narrowed to $1.853 million from previous year's $3.246 million.

The food firm generated sales of $35.363 million, up from $30.809 million in 2022. RGF noted that an increase in sales was primarily due to a rise in sales velocities of the firm's products in the club channel and to a lesser extent distribution growth in the measured channel.

For full year 2023, the company expects to register sales of at least $200 million, with adjusted EBITDA in the mid-to-high single-digit millions range.

For the long-term, Real Good Food continues to project to post net sales of around $500 million, with adjusted EBITDA margin of 15 percent.