The Fresh Factory Reports Strong Q3 2023 Results, with Record YTD Billed Revenue of $17.2M

• The Company reported quarterly billed revenue of $5.8M ($7.7M CAD), representing a year-over-year increase of 3.2%.
• Year-to-date billed revenue of $17.2M ($22.9M CAD) represents a YoY increase of 19.4%.
• Year-to-date total revenue of $16.9M ($22.5M CAD) represents a YoY increase of 22.7%.
• The Company increased adjusted gross margins to 30.2% in Q3 2023 vs. 27.2% in Q3 2022.
• The Company achieved +$0.1M (+$0.1M CAD) adjusted EBITDA, the first target on the path to sustainable positive net income.

CAROL STREAM, IL / ACCESSWIRE / November 29, 2023 / The Fresh Factory B.C. Ltd. (TSXV:FRSH)(FRA:Q4Z) ("The Fresh Factory" or the "Company"), a mission-driven company for fresh, clean-label, and better-for-you food and beverage brands, reports quarterly and year-to-date financial results for the period ending September 30, 2023 ("Q3 2023" and "YTD 2023," respectively).

Bill Besenhofer, Chief Executive Officer and co-founder of The Fresh Factory, commented: "We are thrilled to announce our continued growth, with billed revenue totaling $5.8 million ($7.7M CAD) for the quarter. In addition, the team worked hard to achieve our first quarter of positive adjusted EBITDA results. We feel we have set the table for continued success by implementing a more disciplined, metric-driven approach to managing our day-to-day operations. As we continue to grow, we want to do so profitably and allow companies to turn to us as a trusted partner, relying on our expertise in everything from product formulation to product fulfillment. Furthermore, we recently began trading on the TSX Venture Exchange, opening up new opportunities to share our story with a broader investor audience."

Financial Highlights: YTD 2023 vs. YTD 2022

• Record billed revenue of $17.2M ($22.9M CAD) YTD 2023, vs. $14.4M ($19.2M CAD) YTD 2022, an increase of 19.4%, was driven by the onboarding of new customers, worth approximately $1.4M ($1.9M CAD) and increased demand from existing customers, representing approximately 14% organic growth.
• Adjusted EBITDA of $(0.7)M ($(0.9)M CAD) YTD 2023, an improvement of approximately ~$0.6M compared to YTD 2022, was driven by increased sales and efficiencies across the supply chain.
• Adjusted gross margin of $4.9M ($6.5M CAD) in YTD 2023, vs. $3.9 ($5.2M CAD) in YTD 2022, represents a 56.7% increase.

Financial and Operational Highlights: Q3 2023 vs Q2 2023