Goodfood Market Corp. reported a loss of $3.7 million in its latest quarter compared with a loss of $58.4 million a year earlier as the meal kit company improved its margins.

The company says the loss amounted to five cents per diluted share for the quarter ended Sept. 2 compared with a loss of 78 cents per diluted share a year earlier.

Net sales in what was Goodfood's fourth quarter totalled $37.2 million, down from $50.4 million in the same quarter last year.

The drop in net sales came as Goodfood saw a drop in the number of active customers, partially offset by an increase in average order value.

Goodfood says the decrease in active customers was mainly driven by its focus on attracting and retaining customers that provide higher gross margins and by changing customer behaviour.

The company's gross margin for the quarter improved to 38.2 per cent compared with 28.3 per cent a year earlier.

This report by The Canadian Press was first published Nov. 22, 2023.

Companies in this story: (TSX:FOOD)