The Company's Total Revenue and Retail Order Volume Increased in Q2 2022 by 127% and 151%, Respectively, as its Number of Ghost Kitchen Locations Grew From 14 to 28 Locations on a Year-Over-Year Basis
Financial Highlights
- Total revenue of
$5,039,338 and$9,206,021 for the three- and six-month periods endedMarch 31, 2022 , respectively as compared to$2,224,281 and$4,135,451 for the three-and six-month periods endedMarch 31, 2021 , respectively; - Retail order volume grew by 151% to 321,914 and by 139% to 587,663 orders for the three- and six-month periods ended
March 31, 2022 , respectively, from 128,400 and 246,200 orders for the three- and six-month periods endedMarch 31, 2021 , respectively; - Number of ghost kitchens doubled to 28 with an average retail delivery size of
$14.42 per order in the first six months of 2022, from 14 ghost kitchens with a similar average retail delivery size of$14.80 per order for the same period in 2021; - Adjusted EBITDA losses were
$4,583,681 and$7,169,122 for the three- and six-month periods endedMarch 31, 2022 , respectively, as compared to losses of$1,746,675 and$3,121,930 for the same three and six-month periods of the prior year, respectively. The increase is primarily as the result of an overall increase in business activities; an increase in general and administrative costs due to salaries increasing as the result of an higher number of employees and consultants; professional fees increasing due to international business expansions, regulatory compliance as well as tax, legal and accounting due diligence completed in Q1 2022 related to potential business acquisition; and advertising and marketing increasing due to overall increase in business activities; and - Net losses were
$5,442,157 and$9,013,760 for the three- and six-month periods endedMarch 31, 2022 , respectively, as compared to$2,530,157 and$4,959,959 for the same three-and six-month periods of the prior year, respectively, due to the same primary reasons listed above.
Management Commentary
"Exceeding
Summary of Key Financial Measures
Quarter ended $ | Quarter ended $ | |
Number of kitchens | 28 | 14 |
Revenue from retail customers | ||
Revenue from business | ||
Total Revenue | ||
Number of retail deliveries | 321,914 | 128,400 |
Average retail delivery size | ||
Net loss | ||
Comprehensive loss | ||
Basic loss per share | ||
Diluted loss per share |
The following is a reconciliation of Adjusted EBITDA to Income (Loss) from Operations:
Quarter ended $ | Quarter ended $ | |
Loss for the period | (5,442,157) | (2,530,157) |
Interest expense | 30,760 | 26,581 |
Depreciation expense | 474,612 | 223,735 |
Amortization expense | 19,932 | - |
EBITDA | (4,916,853) | (2,279,841) |
Stock-based compensation | 333,172 | 533,166 |
Adjusted EBITDA1 | (4,583,681) | (1,746,675) |
1. | Adjusted EBITDA is a financial measure that does not have a standardized meaning under IFRS. Adjusted EBITDA is defined as earnings before interest expense, depreciation, amortization, and stock-based compensation. As there is no standardized method of calculating Adjusted EBITDA, it may not be directly comparable with similarly titled measures used by other companies. The Company considers Adjusted EBITDA to be a relevant indicator for measuring trends in performance and its ability to generate funds to service its debt and to meet its future working capital and capital expenditure requirements. Adjusted EBITDA is not a generally accepted earnings measure and should not be considered in isolation or as an alternative to net income (loss), cash flows or other measures of performance prepared in accordance with IFRS. |
Corporate Highlights Subsequent to
The Company:
- Entered the
Singapore market by opening two ghost kitchen locations; - Entered Philippine market through its joint venture entity with
TDG Ventures, Inc. , signing an agreement to open two ghost kitchen locations inthe Philippines' capital city ofManila ; - Opened an exclusive ghost kitchen location at
Jialong Technology Inc. within the Taoyuan Environmental Science and Technology Park; - Signed an agreement with
Dine Brands International to sell IHOP's world-famous pancakes, breakfast combos, omelets, burritos, bowls and more inTaiwan ; - Launched its exclusive new Mr. Chili menu in
Taiwan with the Mr. Hot instant noodle brand and celebrity singerHsiao Ching-Teng ; and - Had its proprietary Go Lean food brand be the first ghost kitchen brand to be deemed eco-friendly by
Foodpanda .
Similar to the statement provided in the announcement of the Company's previous financial results, and despite the significant increase in revenues and order volume on a year-over-year basis, the Company anticipates that operating costs will remain proportionally elevated in the near term to support its continued expansion in its home market of
ABOUT JUSTKITCHEN
JustKitchen is primarily an operator of ghost kitchens specializing in the development and marketing of proprietary and franchised delivery-only food brands for customers. The Company currently operates in
For more information about the Company, please visit investors.justkitchen.com. JustKitchen's final prospectus, financial statements and management's discussion and analysis, among other documents, are all available on the Company's profile page on SEDAR at www.sedar.com.
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.
CONTACT INFORMATION
FORWARD-LOOKING STATEMENTS
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur including but not limited to the Company's comments regarding growing beyond 30 ghost kitchen locations in multiple countries; expanding its portfolio of proprietary and partner brands; increasing the size and scope of its business network; strengthening its JKOS tech stack; widening its competitive moat; and expanding its operational footprint in
SOURCE
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