Total Revenue

Down 1.7%

Total revenue in Q3 2024 dropped slightly ($17.01M vs. $17.30M) due to a steep decline in the E-Commerce segment being partially offset by gains in Specialty Foodservice revenue; this contrasts with previous periods where larger revenue declines were seen in Q2 2023 and Q2 2024. " "

Specialty Foodservice

+5.5%

Specialty Foodservice revenue increased from $14.78M to $15.58M as improved operational adjustments, recovered demand, and new customer initiatives drove growth, marking a turnaround from earlier quarters that experienced declines due to normalization and technology transition challenges. " "

E-Commerce Revenue

Down 39%

E-Commerce revenue declined significantly from $1.83M to $1.12M as the company intentionally scaled down its direct-to-consumer operations, reducing marketing spend and shifting strategic focus to B2B, a trend consistent with earlier period decisions that targeted long‐term profitability over short‐term sales. " "

Operating Income (EBIT)

+270%

Operating income surged from $192,869 to $713,895, largely owing to cost discipline measures, including significant reductions in SG&A expenses and an improved revenue mix; prior period actions and cost controls helped amplify margins in Q3 2024. " " "

SG&A Expenses

Down 20%

SG&A expenses decreased from $4,483,134 to $3,570,339, driven by lower payroll, advertising, and facilities costs, which were initiatives expanded from previous quarters; this reduction has contributed directly to the robust operating income performance. " "

Interest Expense

Down 16.7%

Interest expense reduced from $260,708 to $217,275, as higher interest income partly offset increased borrowing costs, reflecting effective financing adjustments carried forward from earlier periods. " "

Revenue Growth

Q4 2024

no prior guidance

expects significant revenue growth from new business ventures "

no prior guidance

Gross Margins

Q4 2024

no prior guidance

anticipates improved gross margins due to better cost of goods as they scale their retail cheese business "

no prior guidance

Profitability

Q4 2024

no prior guidance

retail business expected to begin delivering profit early next year "

no prior guidance

Adjusted EBITDA

Q4 2024

no prior guidance

milestone of achieving $110 million (first $100 million revenue and $10 million in adjusted EBITDA) "

no prior guidance

Inventory Levels

Q4 2024

no prior guidance

inventories expected to grow due to ramp-up of the cheese business in the retail segment "

no prior guidance

Revenue Guidance

Next 12 months (starting Q2 2024)

expects sales headwinds of approximately $8M to $9M with a net profit improvement of $300K–$400K "

no current guidance

no current guidance

Specialty Foodservice Revenue

Next 12 months (starting Q2 2024)

expects Specialty Foodservice revenue to grow in the back half of the year "

no current guidance

no current guidance

M&A Activity

Next 12 months (starting Q2 2024)

aims to execute its first acquisition in the foodservice sector by the end of 2024 "

no current guidance

no current guidance

Operational Strategy

Next 12 months (starting Q2 2024)

plans to leverage its streamlined organization and reallocated resources to drive foodservice growth "

no current guidance

no current guidance

Profitability

Next 12 months (starting Q2 2024)

current business model designed to generate profit growth as revenue returns to growth, with SG&A and gross margin improvements "

no current guidance

no current guidance

Gross Margin Trends

In Q1 2024, margins improved (up 174bps) due to scaling down less profitable channels and pricing initiatives. " " In Q4 2023, adjusted margins improved modestly despite GAAP declines driven by inventory writedowns. " "

In Q3 2024, gross margins declined by 150bps due to the reduced impact from a high‐margin e-commerce channel and negative margins during a retail cheese test; however, management expects stabilization as the new mix takes effect. " "

Shift from earlier improvements to short-term pressure with an expectation of future stabilization as operational mix adjusts.

Acquisition Strategy

Q1 2024 emphasized targeting profitable acquisitions (3-5x EBITDA) in food distribution with conservative financing. " " Q4 2023 focused on a pipeline of M&A deals pending the sale of the Pennsylvania building. "

Q3 2024 highlighted the acquisition of Golden Organics, stressing prudent structuring, integration for synergies, and a playbook for future acquisitions. "

Consistent focus on acquisitions is maintained but the approach has evolved from pipeline discussions to executing strategic, synergy-driven deals.

Business Mix Evolution

Q1 2024 highlighted scaling back direct-to-consumer e-commerce and bolstering the Specialty Foodservice business. " " Q4 2023 detailed exiting e-commerce and initial shifts to high‐margin channels. " "

Q3 2024 further emphasizes the shift: retail (cheese business ramp‐up), exit of e-commerce, steady high‐margin dropship, and growth in food distribution. " "

A continuous move away from unprofitable e-commerce toward retail and food distribution channels, reinforcing the company’s commitment to a more profitable business mix.

Customer Acquisition

Q1 2024 noted new contracts with significant partners like Cheney Brothers and testing with large customers. " " " Q4 2023 discussed establishing relationships with Gate Gourmet and other major customers. " "

Q3 2024 reported further expansion with a large new retail business, an enhanced broadline distributor partnership, an Amazon expansion, and a new airline catering win; plus, the Golden Organics acquisition supports customer diversification. " " "

Expansion and diversification continue, with customer acquisition efforts broadening across multiple channels and strategic ties, indicating increased optimism and scale.

Operational Scaling

Q1 2024 described a stabilization phase with targeted investments and plans to sell the Pennsylvania warehouse, along with cost management efforts. " " Q4 2023 mentioned a three‐phase strategy focusing on laying the groundwork for growth. " " "

In Q3 2024, the operational scaling narrative is detailed — switching the PA warehouse to serve food service, airline, and retail, record purchase orders in the retail cheese business, and acknowledging start-up investment costs. "

An intensifying focus on scaling operations, with more detailed execution in Q3 as the company invests in retail expansion, marking a transition from groundwork planning to active scaling.

E-commerce Performance

Q1 2024 reported a 41.7% decline in e-commerce revenue as part of a strategic move to enhance profitability. " " Q4 2023 described a 20.4% decline and cost reduction measures to stabilize the segment. " "

Q3 2024 further underscores the exit from e-commerce through the sale of iGourmet and mouth.com assets, eliminating legacy liabilities and refocusing on core operations. " "

A consistent trajectory of scaling back and exiting e-commerce, driven by persistent cost challenges and a strategic shift toward more profitable channels.

Asset Sale for Debt Reduction

Q1 2024 mentioned asset sales (e.g., Haley Group, Florida office) and efforts to sell the Pennsylvania warehouse to reinvest capital. " " Q4 2023 emphasized selling the Pennsylvania building to pay off $9M in loans. "

Q3 2024 discussed the sale of iGourmet and mouth.com assets to remove liabilities, aligning with a broader asset sale strategy aimed at improving the balance sheet. "

Asset sales continue to be a key theme, with the strategy evolving from selling smaller unproductive assets in earlier quarters to significant transactions aimed directly at debt reduction and balance sheet improvement.

Legal Risk Mitigation

(No mention in Q1 2024.) Q4 2023 focused on settling a major lawsuit (related to a truck accident) with no cash out due to insurance coverage. "

No mention in Q3 2024.

Emergence in Q4 2023 as a one-off positive development to relieve longstanding legal risks, with no further discussion in Q1 or Q3.

Revenue Growth Outlook

Q1 2024 indicated modest growth in Specialty Foodservice (up 1.4%) amidst challenges, with optimism from new contracts but caution about near-term challenges. " " " Q4 2023 recapped revenue declines overall but signaled a turnaround in late 2024. " "

Q3 2024 expressed strong signs of growth: core specialty food service increased by 5.5% versus Q3 2023, supported by retail expansion and new business channels; legacy dropship declines were reduced to single digits. " "

A gradual shift from cautious optimism to a more confident growth outlook as new channels (retail, broadline, airline catering) ramp up, offsetting past declines and suggesting a robust turnaround in revenue growth trends.