Coho Collective Kitchens Inc. Reports Q2 2023 Financial Results
Revenue of $656 thousand, up 64% YOY
Average Revenue per Member of $1,651, up 14% YOY
Expanded to Six Locations, Additional Two Locations Set to Open by the End of Q3
Vancouver, British Columbia (November 28, 2022) - Coho Collective Kitchens Inc. (TSXV: COHO) ("Coho" or the "Company"), a commercial real estate and food technology company that provides private and shared kitchen and food production space to a variety of businesses, is pleased to announce that it has filed its unaudited Q2 financial results for the three months ending September 30th, 2022, the highlights of which are included in this news release. The unaudited Condensed Consolidated Interim Financial Statements and Management Discussion and Analysis ("MD&A") for the three and six months ended September 30, 2022, can be viewed by visiting the Company's website at www.cohocommissary.com or its profile on SEDAR at www.sedar.com.
Q2 Financial Highlights
Revenue of $656,295, a 64% increase vs revenue of $400,724 in Q2 2021. The year-over-year increase was driven by higher rental and retail sales.
Average Revenue per Member of $1,651, a 14% increase vs Average Revenue per Member of $1,450 in Q2 2021.
Gross margin remains strong at 83%.
"Coho continues its dominance in the Canadian Ghost Kitchen Industry - opening four new locations during Q2. Subsequent to Q2, in line with our expansion strategy, Coho looks forward to opening its eighth location by the end of December 2022. The anticipated revenues from these locations coming online will allow us to pursue new growth opportunities, establishing Coho as a leading player in North America," said Andrew Barnes, Co-Founder and Chief Executive Officer of Coho Collective Kitchens Inc.
Operating Highlights for the Quarter
On July 22, 2022, the Company announced the opening of a new facility ("Coho Victoria"), located at 1701 Douglas Street, Victoria, British Columbia. Coho Victoria is Coho's first physical footprint on Vancouver Island, where there is a high demand for shared kitchen spaces and real estate as a whole. Located in the heart of Victoria's downtown core at The Victoria Public Market at the Hudson, the 2,324 square foot space features eight stations for up to 16 potential businesses, including ghost kitchens, caterers, consumer packaged goods companies, and R&D for restaurants.
On July 26, 2022, the Company executed a lease agreement among Peterson Crestwood Limited Partnership as landlord, Richmond By Coho Collective Kitchens Inc. as tenant, and the Company, Amrit Maharaj (COO), and Andrew Barnes (CEO), as indemnifiers. The new facility ("Coho Crestwood"), totaling 26,000 square feet, will be one of the largest facilities of its kind in Canada, featuring an expansive commissary space, food hall, and grocery concept.
On July 29, 2022, the Company announced the imminent opening of its new facility in Lower Gibsons ("Coho Gibsons"). Totaling 8,445 square feet, Coho Gibsons features 16 potential work stations to support up to 32 different community companies.
On August 9, 2022, the Company executed a non-binding letter of intent (the "LOI") with Beyond Oil Ltd. The LOI outlines the Company's anticipated collaboration with Beyond Oil, introducing Beyond Oil's fry oil product to its kitchens' frying systems to improve fry oil life and reduce oil waste. Upon completion of the tests, Beyond Oil and Coho may negotiate the terms of a definitive agreement, which will be led by Beyond Oil's distributor, TEJA Food Group.
On September 8, 2022, the Company announced the opening of its seventh facility ("Coho White Rock"), located in the City of White Rock at 14985 Marine Drive, White Rock, British Columbia. Coho White Rock represents a brand new vertical for Coho, named "Coho Eatery", providing mixed-use capabilities within a high-traffic retail area. The 2,200 square foot space reflects the Company's understanding of the needs of the rapidly growing commercial hospitality market and will include a shared kitchen space, ghost kitchens, and both dine-in and take-out opportunities.
Subsequent to Quarter End:
On October 13, 2022, the Company announced the opening of a new facility ("Coho Pandora"), located at 1623 Pandora Street, Vancouver, British Columbia, by the end of December 2022.
On October 28, 2022, the Company announced the appointment of Michael Yam (CPA, CA), Coho's previous Senior Director of Finance and Operations, as its interim Chief Financial Officer. Mr. Yam replaced Carla Matheson, effective November 1, 2022.
On October 26, 2022, the Company received $348,600 in connection with a loan totalling $800,000 by a lender, acting at arm's length (the "Loan"). On November 25, 2022, the Company received the remaining $451,400 of the Loan. Interest on the Loan accrues at a rate of 8% per annum and the Loan has a 5-year term.
Certain information provided in this news release is extracted from the Company's financial statements and MD&A for the three and six months ended September 30, 2022, and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the financial statements and MD&A that an investor can properly analyze this information. The financial statements and MD&A have been published on the Company's profile on SEDAR.
Coho is a growth stage, community-driven, commercial real estate and food technology company that provides private and shared kitchen and production space to food companies from start-ups to restaurant groups seeking turnkey solutions and business services. Each of the Company’s customers, called “Members”, are revenue generating companies that have signed a membership agreement with Coho for an agreed upon term. The concept falls in line with a rapidly growing trend in the food-delivery industry creating a market for delivery-only and/or virtual restaurant concepts. For more information about how Coho is growing and innovating in the commissary space, visit https://www.cohocommissary.com.
Andrew Barnes, Chief Executive Officer
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflect management's current expectations regarding future events. Forward‐looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward‐looking information. Such risks and uncertainties include, but are not limited to, the ability of the Company to execute on its strategy and the factors discussed under “Risk Factors” in the final long-form prospectus of the Company dated May 27, 2022. Coho disclaims any obligation to update these forward-looking statements.
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.