Innovative Food Holdings, Inc. Reports Financial Results for First Quarter of 2025

Key First Quarter data points:

   -- Revenue of $19.5 million, +26.0% vs. Q1 2024 
 
   -- Organic revenue growth (1) of +22.9% vs. Q1 2024 
 
   -- Gross margin declined by 157 basis points vs. Q1 2024 to 22.9% 
 
   -- GAAP net income (loss) from continuing operations of ($0.4) million vs. 
      $1.4 million in Q1 2024 
 
   -- GAAP net income (loss) from continuing operations per fully diluted share 
      of ($0.008) vs. $0.028 in Q1 2024 
 
   -- Non-GAAP adjusted net income (loss) from continuing operations of $49 
      thousand vs. $161 thousand in Q1 2024 
 
   -- Non-GAAP adjusted net income (loss) per fully diluted share of $0.001 vs. 
      $0.003 in Q1 2024 
 
   -- Non-GAAP adjusted EBITDA of $346 thousand vs. $486 thousand in Q1 2024 
 
   -- Announced new cheese business with an international airline, and 
      relocated LoCo Foods business from Fort Collins to Denver 
 
   -- New retail sales channel generated $3.7 million in revenue 
 
   -- (1) Organic revenue growth excludes the impact of divestitures and 
      acquisitions 

BROADVIEW, Ill., May 15, 2025 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. (OTCQB: IVFH) ("IVFH" or the "Company"), a national seller of gourmet specialty foods to professional chefs, today reported its financial results for the first quarter of 2025.

Bill Bennett, Chief Executive Officer of IVFH, remarked, "The first quarter of 2025 marked additional progress against our strategic plan as we continued the second phase of our growth strategy (building the foundation for growth). Contributing to these efforts, this was our first full quarter focused on the integration of our recent acquisition of Denver-based Golden Organics and Fort Collins-based LoCo Food Distribution, and our first full quarter of our new retail sales channel. We also continue to see strong growth with our new national distributor partner announced last Spring, triple-digit growth in our Amazon sales channel, single-digit growth in our airline catering business, and single-digit growth in our Chicago Artisan business. These growth initiatives were offset by continued softness in our legacy drop ship business. Returning this business to growth through significant catalog expansion is a key initiative for the entire management team, since it continues to represent the majority of the company's revenues. Also, while our new acquisitions are adding incremental topline growth, we were still in the process of stabilizing both new businesses in Q1, as we worked through the relocation of the LoCo business from Fort Collins to Denver, and worked to build out the team and design and implement our operational playbook. Taken together, these trends resulted in revenue growing 26.0% compared to Q1 2024. Organic revenue growth, which excludes the impact of divestitures and acquisitions, was +22.9% for the quarter."

Mr. Bennett continued, "Despite a decline in gross margin by 157 basis points to 22.9% as our business mix shifted towards the lower-margin retail business, gross margin dollars rose by $0.7 million on an additional $4.0 million in revenue. SG&A increased by $0.7 million, but SG&A as a percentage of revenue declined by 155 basis points to 24.1%. SG&A excluding non-cash stock compensation, separation, restructuring, and other legal and transactional costs as shown in Adjusted EBITDA, decreased by 36 basis points to 21.7% of revenue. GAAP Net Income from continuing operations was a loss of $0.4 million vs. a gain of $1.4 million in Q1 2024 when we recorded the $1.8M gain from the sale of our Florida headquarters building. Adjusted EBITDA was $346 thousand vs. $486 thousand in Q1 2024, despite the profit headwind driven by the ramp-up of the retail business. This headwind was approximately $425 thousand in Q1 2025, compared to the Q4 2024 headwind of approximately $700 thousand, as we made progress on the operational cost structure of this new, large business. We remain confident we can achieve profitability in the cheese business as the year progresses."

Mr. Bennett added, "We're pleased to see our new growth businesses and acquisitions begin to materialize this quarter and demonstrate the growth potential of the Company, though we also see an opportunity to continue to make progress on the operating models of our retail cheese business and our new acquisitions. The Company has a solid foundation, a passionate and committed team, and an industry with tremendous long-term potential. We recognize the importance of maintaining a laser focus on our top priorities in a complex economic environment to create a robust, profitable, and sustainable business model. As we navigate the ever-changing landscape of the food industry, we believe in our ability to adapt, innovate, and capitalize on opportunities focused on driving long-term shareholder value," concluded Mr. Bennett.

Conference Call

The Company's management will hold an investor call on May 15, 2025 at 10:00 am Eastern Time to discuss the Company's results for the first quarter ended March 31, 2025. At the end of the meeting, the Company will host a question-and-answer session with investors. All interested participants may attend the call on the web or by phone. The Company encourages those who wish to ask questions to join the call virtually through Zoom, rather than on the phone, as Zoom's "raise hand" feature makes it easier for management to identify questioners. Details for the meeting are as follows:

Join Zoom Meeting: https://us02web.zoom.us/j/88587278031?pwd=HMHKzdgPhohu0bqftzuIaMfHbAZTWF.1

Meeting ID: 885 8727 8031

Passcode: 343676

One tap mobile: +16694449171,,88587278031# US

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 www.ivfh.com.

Forward-Looking Statements

This 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" or "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; and 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 https://www.sec.gov/.

Investor and Media contact:

Gary Schubert

Chief Financial Officer Innovative Food Holdings, inc. investorrelations@ivfh.com

 
 
        Innovative Food Holdings, Inc. Consolidated Balance 
                         Sheets (unaudited) 
 
                                       March 31,     December 31, 
                                          2025           2024 
                                      (unaudited) 
ASSETS 
Current assets 
     Cash and cash equivalents        $  1,105,274   $  2,330,880 
     Accounts receivable, net            7,494,670      9,039,232 
     Inventory, net                      6,796,302      6,290,488 
     Other current assets                  349,918        238,526 
     Assets held for sale                5,941,933      5,941,933 
     Current assets - discontinued 
      operations                                 -         49,315 
                                       -----------    ----------- 
  Total current assets                  21,688,097     23,890,374 
 
     Property and equipment, net         1,690,084      1,584,878 
     Right of use assets - operating 
      leases, net                          644,007        705,476 
     Right of use assets - finance 
      leases, net                          494,390        524,273 
     Amortizable intangible assets, 

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