Star Metro - The Fresh Factory Reports Record Billed Revenue and Expands Capabilities in Q2 2025

CAROL STREAM, IL / ACCESS Newswire / August 26, 2025 / The Fresh Factory B.C. Ltd. (TSXV:FRSH)(FRA:Q4Z) ("The Fresh Factory" or the "Company"), a mission-driven company for fresh, clean-label, and better-for-you food and beverage brands, is pleased to announce financial results for the second quarter ending June 30, 2025 ("Q2 2025").

"We're proud to deliver another record quarter with strong revenue growth, positive EBITDA, and sustained momentum across our platform," said Bill Besenhofer, CEO and co-founder of The Fresh Factory. "With our Downers Grove facility complete and expanded capabilities in place, we're entering the next stage of growth as we scale operations, deliver greater value for our brand partners, and unlock new opportunities."

Financial and Operational Highlights: H1 2025 vs. H1 2024

• Billed revenue of $21.6M ($30.9M CAD) in H1 2025 vs. $15.8M ($22.6M CAD) for H1 2024, an increase of 37%, was mainly driven by the addition of new customers and increased sales through existing customers.

• Adjusted EBITDA of $1.9M ($2.7M CAD) in H1 2025 was favorable $1.2M ($1.7M CAD) vs. H1 2024, an increase of 58%.

• The Company produced 37.8M units in H1 2025, a 232% increase from H1 2024.

Financial and Operational Highlights: Q2 2025 vs Q2 2024

• Record Billed Revenue: $11.0M (CAD $15.8M) in Q2 2025 vs. $7.4M (CAD $10.6M) in Q2 2024, a 49% increase.

• Positive EBITDA: $0.8M (CAD $1.1M) in Q2 2025 vs. $0.3M (CAD $0.4M) in Q2 2024.

• Net Income: $177,988 (CAD $254,269) in Q2 2025 compared to a net loss of $113,584 (CAD $162,263) in Q2 2024.

• Adjusted Gross Margins: $4.0M (CAD $5.7M) in Q2 2025, a 43% increase from $2.8M (CAD $4.0M) in Q2 2024.

Strategic Areas of Focus

The Fresh Factory is building a platform to serve emerging food and beverage brands in the fresh-food sector with an emphasis on better-for-you products. The Company has established the following three key areas of focus on which it will report on a quarterly basis moving forward.

Execution: Focus on safety, high-quality operations, and strong margins.

• The Company achieved positive EBITDA of $0.8M (CAD $1.1M) in Q2 2025.

• Adjusted gross margins increased to $4.0M (CAD $5.7M) for Q2 2025, compared to $2.8M (CAD $4.0M) for Q2 2024.

• Adjusted gross margins, as a percentage, were 36% for Q2 2025, versus 38% for Q2 2024.

• Operating profit on a dollar basis increased by $0.3M (CAD $0.5M) for Q2 2025 vs Q2 2024.

• Operating profit on a percentage basis decreased to 16% in Q2 2025, compared to 19% in Q2 2024, driven by higher facilities and maintenance costs at the new facility, partially offset by increased volume.

Growth: Invest in and grow with the right brands across diversified channels.

• Billed revenue for Q2 2025 was $11.0M (CAD $15.8M), compared to $7.4M (CAD $10.6M) in Q2 2024.

• The Company's Q2 2025 billed revenue grew 49% YOY, driven by new customers onboarded in 2024 and increased demand from existing customers.

• The Company produced 19.1M units in Q2 2025, a 269% increase from Q2 2024 and a 22% increase from Q1 2025.

• As part of a planned succession announced last quarter, Mike Weglarz assumed the roles of Chief Financial Officer and Head of Strategic Growth.

• During Q2 2025, the Company expanded its capabilities of better-for-you snacks and pastries and launched a salad dressing line extension with an existing account.

• The Company completed construction work at its new Downers Grove facility, including the build-out of an expanded R&D lab.

• The Company secured a 10-year lease for a 154,000 sq. ft. facility in the southwest suburbs of Chicago, set to become operational in January 2026, supporting future growth and expanded production capacity.

Sustainability: Become a market leader in sustainability.

• The Company initiated measurement of its Scope 1 and Scope 2 emissions for 2024.

• The Company continued to compost 100% of its food waste.

This earnings news release should be read in conjunction with the Company's interim financial statements for the second quarter ending June 30, 2025 (the "Interim Financial Statements") and the related Management's Discussion and Analysis (the "MD&A"); both documents are available to download on The Fresh Factory's profile on SEDAR+ at www.sedarplus.ca.

For conversion purposes, this release used $0.70 as the conversion rate from CAD to USD.

All figures in this news release are in US dollars unless otherwise stated.

Amended Stock Option Plan

The Company is also pleased to announce that its board of directors has approved an amendment to the Company's existing rolling 10% stock option plan (the "Amended Plan"). The principal change to the Amended Plan is to remedy a clerical error and reflect that the total number of shares issuable under the Amended Plan is set at a maximum of 10% of the number of subordinate voting shares of the Company, taken together with the number of subordinate voting shares issuable on conversion of the proportionate voting shares of the Company, measured at the time of grant.

Approval from shareholders and final approval of the TSX Venture Exchange (the "TSXV") is required for the Amended Plan. This item of business will be presented for approval at the next annual and special meeting of shareholders of the Company, expected to be held on October 9, 2025.

About The Fresh Factory B.C. Ltd.

The Fresh Factory is a vertically integrated company focused on accelerating the growth of the fresh, clean-label, plant-based food and beverage brands of tomorrow. The Fresh Factory owns or partners with emerging brands in the plant-based space to develop, manufacture, and sell products made from fresh produce and recognizable ingredients. It operates from its centrally located manufacturing facility near Chicago, serving customers across the United States. As a public benefits corporation, The Fresh Factory is ESG-focused, driven to make a lighter, greener impact on the environment and a stronger, positive impact on local communities and the food system as a whole. Learn more about The Fresh Factory at www.thefreshfactory.co and find The Fresh Factory on social media at Instagram, Twitter, and LinkedIn.

Contacts

Bill Besenhofer
Chief Executive Officer and Co-Founder
1-877-495-1638
[email protected]

Susan Xu
Media and Investor Relations
1-877-495-1638
[email protected]

Non-IFRS Measures

There are measures included in this news release that do not have a standardized meaning under international financial reporting standards (IFRS) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures because it believes certain investors use them as a means of assessing financial performance. Billed revenue, adjusted gross margin, operating profit, EBITDA, and adjusted EBITDA are financial measures that do not have a standardized meaning under IFRS. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA refers to earnings before interest, taxes, depreciation, amortization, stock-based compensation, one-time transaction expenses, and change in fair value of derivative liabilities. Adjusted gross margin is defined as billed revenue minus food, packaging, and labor (i.e., COGs). Operating profit is adjusted gross margin less utilities, facilities, and maintenance costs. Billed revenue is a financial measure defined as the revenue billed to customers as opposed to total revenue, which represents billed revenue less trade and variable selling and any production credits and samples.

We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with IFRS. We also disclose and discuss certain non-GAAP (Generally Accepted Accounting Principles) financial information used to evaluate our performance in this and other earnings releases and investor conference calls as a complement to results provided in accordance with IFRS. We believe that current shareholders and potential investors in the Company use non-GAAP financial measures, such as billed revenue, adjusted gross margin, operating profit, EBITDA, and adjusted EBITDA in making investment decisions about the Company and measuring its operational results.

Management believes that investors and financial analysts measure our business on the same basis, and we are providing the billed revenue, adjusted gross margin, operating profit, EBITDA, and adjusted EBITDA as financial metrics to assist in this evaluation and to provide a higher level of transparency into how we measure our own business.

Forward-Looking Statements

This news release contains "forward-looking statements" or "forward-looking information" (collectively referred to hereafter as "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements that address activities, events, or developments that the Company expects or anticipates will, or may, occur in the future, including statements about the Company's new product offerings, its ability to execute on its goals, general macro and micro economic impacts of inflation on the business and operation of the Company, the timing pertaining to these goals and receipt of applicable consents and approvals, and Company's business prospects, future trends, plans, and strategies. In some cases, forward-looking statements are preceded by, followed by, or include words such as "may", "will," "would", "could", "should", "believes", "estimates", "projects", "potential", "expects", "plans", "intends", "proposes", "anticipates", "targeted", "continues", "forecasts", "designed", "goal", "anticipate" or the negative of those words or other similar or comparable words. Although the management of the Company believes that the assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that a forward-looking statement herein will prove to be accurate. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Risks and uncertainties applicable to the Company, as well as trends identified by the Company affecting its industry, can be found in the final long-form prospectus of the Company dated November 10, 2021, and the Company's continuous disclosure record available on SEDAR+ at www.sedarplus.ca. Such cautionary statements qualify all forward-looking statements made in this news release. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Neither the TSXV nor its Regulation Services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: The Fresh Factory B.C. Ltd.

View the original press release on ACCESS Newswire

J.Campbell--SMC