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  • The Company reported quarterly billed revenue of $5.5M ($7.5M CAD), compared to $3.9M ($5.3M CAD) in Q1 2022, representing a year-over-year increase of 41.6%.
  • The Company reported total revenue of $5.4M ($7.4M CAD), compared to $3.7M ($5.1M CAD) in Q1 2022, representing a year-over-year increase of 45.6%.
  • The Company completed two non-brokered private placements, totaling 32,917 Proportionate Voting Shares at a price of $60.0 per Proportionate Voting Share and 41,666 Subordinate Voting Shares at a price of $0.60 per Subordinate Voting Share for gross proceeds of $2.0M ($2.7M CAD).
  • The Company successfully executed a price increase in March 2023 to partially offset inflationary pressures on the business.

CAROL STREAM, IL / ACCESSWIRE / May 30, 2023The Fresh Factory B.C. Ltd. (CSE: 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, reports financial results for the first quarter ending March 31, 2023 (“Q1 2023”).

Bill Besenhofer, Chief Executive Officer and co-founder of The Fresh Factory commented: “As we reflect on the remarkable progress we’ve made during the last few quarters, I am pleased to announce that our billed revenue for the first quarter of the year has soared to US$5.5M, marking YoY growth of 41.6%. This achievement can be attributed to the successful onboarding of new customers in late 2022 and the substantial organic growth of our existing customer base, contributing 24% to the overall increase. Additionally, we take great pride in our commitment to excellence, as we have once again passed our annual SQF audit for the seventh consecutive year. While we anticipate ongoing inflationary pressure in the early part of this year, we are confident in our ability to navigate these challenges. With robust infrastructure and a dedicated team in place, we are well-positioned to sustainably accelerate our growth and solidify The Fresh Factory’s position as a frontrunner in the fresh, clean-label food and beverage industry in the United States.”

Financial and Operational Highlights: Q1 2023 vs Q1 2022

  • Total billed revenue of $5.5M ($7.5M CAD) in Q1 2023 vs. $3.9M ($5.3M CAD) for Q1 2022, mainly driven by new customers added in late 2022 and incremental growth of existing business
  • Adjusted EBITDA of $(0.4)M ($(0.5)M CAD) in Q1 2023 vs. $(0.4)M ($(0.5)M CAD) in Q1 2022
  • Adjusted gross margins of $1.5M ($2.1M CAD) in Q1 2023 vs. $1.0M ($1.4M CAD) in Q1 2022
  • Net proceeds from financing activities of $1.7M ($2.3M CAD) in Q1 2023 $0.2M ($0.3M CAD) cash used for Q1 2022
  • As of April 28, 2023, the Company has purchased 167,000 of the eligible 539,186 common shares at a cost of $0.1M ($0.1 CAD), representing a weighted average price of $0.50 ($0.68 CAD) per share under its Normal Course Issuer Bid (“NCIB”).

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 brands. The Company has established four 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

  • Adjusted gross margins, on a percentage basis, increased by 7.6 percentage points from 19.0% in Q4 2022 to 26.6% in Q1 2023, driven by improved efficiencies and pricing action.
  • Operating profit, on a percentage basis, increased by 5 percentage points from 4.6% in Q4 2022 to 9.6% in Q1 2023 due to improved efficiencies and pricing action.
  • The Company successfully completed its annual SQF (Safe Quality Foods) audit. This is the seventh straight year the Company has been SQF audited.

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

  • Total revenue in Q1 2023 continues to remain broadly diversified across direct-to-consumer, quick-service restaurants, retail customers, and food-service customers.
  • The Company continued to expand its manufacturing capabilities and its capacity throughout Q1 2022 at its Carol Stream facility. These new capital investments are expected to positively impact the Company’s revenue and operating cash flow in future periods.
  • The Company produced 2.9M total units in Q1 2023, a 45.0% increase from Q1 2022.
  • The Company completed two non-brokered private placements totaling 32,917 Proportionate Voting Shares at a price of $60.0 per Proportionate Voting Share and 41,666 Subordinate Voting Shares of the Company at a price of $0.60 per Subordinate Voting Share for gross proceeds of $2.0M ($2.7M CAD).

Sustainability: Become a market leader in sustainability 

  • The Company continues to work on its multi-year plan toward increased sustainability by starting a project to replace the lights in its factory with more efficient motion-sensored LED lights.
  • The Company continues to compost 100% of its food waste and donate 100% of produce extras.

This earnings news release should be read in conjunction with the Company’s interim financial statements for the first quarter ending March 31, 2023 (the “Audited Financial Statements”) and the related Management’s Discussion and Analysis (the “MD&A”), both of which will be available to download on The Fresh Factory’s profile on SEDAR at

For conversion purposes, this release used $0.73 as the conversion rate from CAD to USD.

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

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 US. 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 and find The Fresh Factory on social media at Instagram, Twitter, and LinkedIn. To receive news and updates about The Fresh Factory, visit their website at


Bill Besenhofer
CEO and Co-founder

Alyssa Barry
Media and Investor Relations

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 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.