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2 days ago
- Business
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Innovative Food Holdings Inc (IVFH) Q2 2025 Earnings Call Highlights: Revenue Surge and ...
Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Innovative Food Holdings Inc (IVFH) reported a 26.9% increase in revenue for Q2 2025. The company is exiting its cheese conversion business and selling its Pennsylvania warehouse, which is expected to improve cash flow and margins. IVFH's airline catering business grew by 26.1% in Q2, indicating strong performance in this segment. The company launched an AI-driven catalog management platform to accelerate vendor onboarding and catalog growth. IVFH is expanding its business into new regional markets and participating in national food shows to increase visibility and growth opportunities. Negative Points The cheese conversion business was unprofitable and required significant resources, leading to its discontinuation. Gross margin decreased by 294 basis points year over year, primarily due to the cheese conversion business. Selling, general, and administrative expenses increased due to higher payroll and office expenses. The digital channels business saw a 4.9% decline, although this was an improvement from a 6.8% decline in Q1. The company has deferred its name change and uplisting initiatives to focus on operational execution and integration efforts. Q & A Highlights Warning! GuruFocus has detected 5 Warning Signs with IVFH. Q: Why did Innovative Food Holdings decide to exit the cheese conversion business so soon after starting it? A: Bill Bennett, CEO, explained that the decision was difficult but necessary. The cheese business was not reaching the scale needed to justify the expenses of the Pennsylvania facility. Tariff pressures and the departure of a tenant compounded the challenges. The company decided to wind down the cheese conversion and sell the facility to focus on more profitable ventures. Q: How will the closure of the Pennsylvania facility affect the company's core strategy in the Northeast corridor? A: Bill Bennett, CEO, stated that the closure will not negatively impact the core strategy. The airline catering business, which was based there, can operate from anywhere and is actually cheaper to ship from Chicago. The digital channels business, a primary growth driver, will remain unaffected. Q: Is Innovative Food Holdings considering further acquisitions to meet growth goals after the cheese divestiture? A: Bill Bennett, CEO, mentioned that the company is still evaluating the integration of recent acquisitions like Golden Organics and Loco. Depending on the synergies and goals achieved, there may be opportunities for further acquisitions. The focus remains on supporting the broader strategy of being a drop-ship company. Q: What are the expected financial impacts of selling the Pennsylvania facility? A: Gary Schubert, CFO, noted that the sale will eliminate approximately $9 million in debt, significantly strengthening the balance sheet. The company expects some tax impacts, but these will be largely offset by net operating losses from previous years. The sale will also reduce interest expenses and improve cash flow. Q: Can you provide more details on the new AI-driven catalog management platform? A: Bill Bennett, CEO, explained that the platform is in a soft launch phase, allowing vendors to interact more efficiently. The focus is on accelerating item setup, which has already improved significantly. The platform aims to streamline processes and drive business outcomes, with ongoing development to enhance automation and efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 登入存取你的投資組合
Yahoo
2 days ago
- Business
- Yahoo
Innovative Food Holdings Inc (IVFH) Q2 2025 Earnings Call Highlights: Revenue Surge and ...
Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Innovative Food Holdings Inc (IVFH) reported a 26.9% increase in revenue for Q2 2025. The company is exiting its cheese conversion business and selling its Pennsylvania warehouse, which is expected to improve cash flow and margins. IVFH's airline catering business grew by 26.1% in Q2, indicating strong performance in this segment. The company launched an AI-driven catalog management platform to accelerate vendor onboarding and catalog growth. IVFH is expanding its business into new regional markets and participating in national food shows to increase visibility and growth opportunities. Negative Points The cheese conversion business was unprofitable and required significant resources, leading to its discontinuation. Gross margin decreased by 294 basis points year over year, primarily due to the cheese conversion business. Selling, general, and administrative expenses increased due to higher payroll and office expenses. The digital channels business saw a 4.9% decline, although this was an improvement from a 6.8% decline in Q1. The company has deferred its name change and uplisting initiatives to focus on operational execution and integration efforts. Q & A Highlights Warning! GuruFocus has detected 5 Warning Signs with IVFH. Q: Why did Innovative Food Holdings decide to exit the cheese conversion business so soon after starting it? A: Bill Bennett, CEO, explained that the decision was difficult but necessary. The cheese business was not reaching the scale needed to justify the expenses of the Pennsylvania facility. Tariff pressures and the departure of a tenant compounded the challenges. The company decided to wind down the cheese conversion and sell the facility to focus on more profitable ventures. Q: How will the closure of the Pennsylvania facility affect the company's core strategy in the Northeast corridor? A: Bill Bennett, CEO, stated that the closure will not negatively impact the core strategy. The airline catering business, which was based there, can operate from anywhere and is actually cheaper to ship from Chicago. The digital channels business, a primary growth driver, will remain unaffected. Q: Is Innovative Food Holdings considering further acquisitions to meet growth goals after the cheese divestiture? A: Bill Bennett, CEO, mentioned that the company is still evaluating the integration of recent acquisitions like Golden Organics and Loco. Depending on the synergies and goals achieved, there may be opportunities for further acquisitions. The focus remains on supporting the broader strategy of being a drop-ship company. Q: What are the expected financial impacts of selling the Pennsylvania facility? A: Gary Schubert, CFO, noted that the sale will eliminate approximately $9 million in debt, significantly strengthening the balance sheet. The company expects some tax impacts, but these will be largely offset by net operating losses from previous years. The sale will also reduce interest expenses and improve cash flow. Q: Can you provide more details on the new AI-driven catalog management platform? A: Bill Bennett, CEO, explained that the platform is in a soft launch phase, allowing vendors to interact more efficiently. The focus is on accelerating item setup, which has already improved significantly. The platform aims to streamline processes and drive business outcomes, with ongoing development to enhance automation and efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Innovative Food Holdings, Inc. Announces 2025 Annual Meeting, and CEO Letter to Shareholders
BROADVIEW, Ill., May 13, 2025 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. (OTCQB: IVFH) ('IVFH' or the 'Company'), a national seller of gourmet specialty foods to professional chefs, today announced the timing for the Company's 2025 annual meeting of shareholders and shared a letter from the Chief Executive Officer to the Company's shareholders. Annual Meeting of Shareholders The Company will be hosting its annual meeting of shareholders in person on May 28, 2025 at 10:00 a.m. Eastern Time at the Courtyard by Marriott, 114 West 40th St, New York, New York. Please reference the Company's Definitive Proxy Statement as filed with the U.S. Securities and Exchange Commission on May 5, 2025 for full details on the agenda for the meeting. This will be a great opportunity for investors to meet the Company's board of directors and management team. CEO Letter to Shareholders Included in the Company's Proxy Statement for its upcoming Annual Meeting of Shareholders is the following letter from the Company's Chief Executive Officer, Bill Bennett: May 5, 2025 Dear fellow stockholders, As we turn the page on 2024 and look ahead to the future, I want to begin by thanking you for your continued support and trust. Each year, I am reminded of just how important our shareholder community is to the success and evolution of Innovative Food Holdings, Inc. ('IVFH'). Thank you for your continued support and confidence during this year of significant transformation and growth. 2024 was a pivotal year. We moved beyond stabilization and into strategic execution, accelerating our progress across multiple fronts. When I joined IVFH, we laid out a clear roadmap to long-term value creation. That roadmap remains our north star: Phase 1: Stabilization – Restructure the business, strengthen the balance sheet, and improve gross margins. Phase 2: Lay the Foundation for Growth – Optimize operations, focus the business, and execute strategic acquisitions. Phase 3: Build and Scale – Expand markets, scale revenue, and activate a profitable flywheel. I'm proud to share that Phase 1 is now complete, and Phase 2 is well underway. The business is healthier, more focused, and more dynamic than it has been in years. Executing on Strategy Our 2024 achievements speak for themselves: We divested all non-core operations, including and eliminating distractions and financial drag. We improved our financial flexibility by selling our Florida headquarters and rightsizing our cost structure. We focused entirely on our core foodservice distribution business, which delivered organic revenue growth (excluding the impact of divestitures and acquisitions) of 44.3% in Q4 2024, most of which was driven by the new retail business we launched this year. We completed our first two acquisitions, the first in five years—Golden Organics and LoCo Foods—that are both profitable and synergistic. We launched a national retail distribution partnership, creating a new revenue stream with immediate and material scale. Despite a year of structural change, we grew revenue to $72.1 million—up 2.5% year-over-year. GAAP net income improved by $6.2 million to $2.5 million. These gains are especially meaningful given our continued investment in growth-related expenses in our new retail platform and integration costs from our recent acquisitions. Disciplined, Synergistic M&A We continue to evaluate acquisitions through four key lenses: Immediately accretive profitability Attractive valuation, before considering synergies Strategic fit Right-sized for integration Golden Organics and LoCo Foods were clear fits. Already, their integration has unlocked real value—lower logistics costs (down 60%), reduced driver hours (down 50%), and elimination of a $158,000 annual facility expense. There is significant work ahead as we focus on fully integrating the companies to our platform, and begin to prove their long-term flywheel effect, but the early progress demonstrates the speed at which we're moving. In 2025, our focus will remain squarely on integrating these acquisitions, building scalable systems, and strengthening the foundation. While we do not expect to pursue additional M&A this year, we are laying the groundwork for the next chapter in Phase 3. Founder Mode: A Renewed Focus on Digital Channels Our legacy drop ship business is an important part of our platform; however sales continued to decline year-over-year in 2024. To accelerate its rebound, I have taken direct ownership of the team and infused a renewed sense of urgency, with a focus on 1) accelerating catalog expansion through cutting-edge AI tools, 2) adding headcount in sales to deepen relationships at both the distributor and local market levels, and 3) integrating the catalogs from our new acquisitions to begin driving a flywheel effect. We are applying the same founder-like energy that helped this business succeed in its early days, and I am confident in the results to come. Momentum Across the Portfolio Beyond our core businesses, we are seeing strength in several additional channels: Artisan Specialty Foods: sustained double-digit growth Airline catering: sustained double-digit growth Amazon: triple-digit revenue growth Each of these verticals plays a role in our diversified growth strategy, and each contributes to a less concentrated, more balanced and resilient business. The Road Ahead We ended 2024 with clear momentum. We strengthened our focus, delivered profitable growth, and built the early pieces of a scalable platform. And we did it while remaining disciplined and aligned to our long-term vision. Looking forward, our priorities are clear: Drive profitable growth across foodservice and retail Successfully integrate Golden Organics and LoCo Foods Continue scaling operational excellence and technology enablement Position the company for Phase 3 acceleration We are building a stronger, more durable IVFH. Our long-term ambition—a $1 billion revenue company—is bold, but our roadmap is grounded in real progress. As part of this road ahead, three of our long-time board members are stepping down: Sam Klepfish, Hank Cohn, and Jefferson Gramm. We are incredibly grateful for their tremendous contributions to the company. Accordingly, we are shrinking the size of the board from eight members to five, with each of our remaining directors standing for re-election. I have full confidence in our remaining board members, who are all stockholders themselves, and who bring diverse expertise and a shared commitment to driving our company forward over the long term. Finally, I want to thank our employees, customers, board members, and you—our stockholders. We are grateful for your trust and excited about what we can achieve together. With deep appreciation and confidence in the future, Robert W. (Bill) BennettChief Executive OfficerInnovative Food Holdings About Innovative Food Holdings, Inc. At IVFH, we help make meals special. We provide access to foods that are hard to find, have a compelling story, or are on the forefront of food trends. Our gourmet foods marketplace connects the world's best artisan food makers with top professional chefs nationwide. We curate the assortment, experience, and tech enabled tools that help our professional chefs create unforgettable experiences for their guests. Additional information is available at Forward-Looking StatementsThis release contains certain forward-looking statements and information relating to the Company that are based on the current beliefs of the Company's management, as well as assumptions made by, and information currently available to, the Company. Such statements, including those related to the Company's growth plans, reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein, which include words such as 'should,' 'could,' 'will,' 'anticipate,' 'believe,' 'intend,' 'plan,' 'might,' 'potentially,' 'targeting,' 'expect,' or similar expressions. Additional factors that could also cause actual results to differ materially relate to current conditions and expected future developments, international crises, environmental and economic issues and other risk factors described in the Company's public filings. As a result, readers are cautioned not to place undue reliance on these forward-looking statements and should understand that these statements are not guarantees of performance or results and that there are a number of risks, uncertainties and other important factors, many of which are beyond the Company's control, that could cause the Company's actual results to differ materially from those expressed in these statements, including, among others: economic factors affecting consumer confidence and discretionary spending; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; changes in the Company's relationships with vendors and customers. The Company does not intend to update these forward-looking statements. For a detailed discussion of these risks, uncertainties and other factors that could cause the Company's actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled 'Risk Factors' in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission ('SEC'). Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Company with the SEC, which are available on the SEC's website at Investor and Media contact:Gary SchubertChief Financial OfficerInnovative Food Holdings, in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
