The Real Good Food Company on path to ‘robust long-term growth’

For Q1 2022, The Real Good Food Company increased net sales by 124% year on year to $37.6m, driven by strong sales growth of its core products and expansion into the club channel as well as greater demand in existing retail accounts, said executive chairman Bryan Freeman.

“We expect growth in the retail channel to accelerate in the coming months as we introduce new products and grow the distribution of our existing core products. Our retail business, which is 100% branded, is on pace to achieve approximately $100m in net sales on a run rate basis, which is an important milestone,”Freeman said on the company’s earnings call last week.

Gross profit also increased 5.8% to $4.2m for the Q1 2022 driven by an increase in sales volume, partially offset by an increase in labor and material costs.

Freeman commented that the company expects its gross margins to improve with the additional capacity coming from its newly-opened facility in Bolingbrook, Illinois, which is expected to add $200m in incremental capacity by the end of 2022.

With several indicators of positive growth, the company updated its revenue guidance for the full year 2022 to be in the range of $150m to $160m, compared to previous estimates of $140m to $150m.

Commenting on the impact inflation is having on the business, Freeman said, “Although inflation continues to be a headwind, we have good visibility into our cost structure, and have greater conviction in our productivity agenda, which is underpinning our confidence in updated guidance.”

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