Overview

• US gourmet foods distributor's Q1 revenue fell 19% yr/yr amid transition and competitive pressures

• Company improved operating and net income from continuing operations despite lower revenue

• Sale of Pennsylvania facility eliminated most debt and strengthened balance sheet

Outlook

• Innovative Food Holdings expects Digital Channels transition to soon end its most disruptive phase

• Company sees early signs of stabilization in Local Distribution segment, rebuilding will take time

Result Drivers

• DIGITAL CHANNELS TRANSITION - Co said revenue decline was mainly due to ongoing migration from legacy to new platform at its largest digital partner, combined with broader marketplace competitiveness

• COMPETITIVE PRESSURE - National Distribution revenue remained under pressure due to competitive dynamics and airline menu-cycle changes

• CUSTOMER ATTRITION - Local Distribution segment continued to face challenges from customer attrition, though rate of decline moderated and early signs of stabilization were noted

Company press release: ID:nGNX1Qfybr

Key Details

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