The Fresh Factory Reports Strong Q3 2023 Results, with Record YTD Billed Revenue of $17.2M - Seite 2

• Total billed revenue was $5.8M ($7.7M CAD) in Q3 2023 vs. $5.9M ($7.8M CAD) for Q2 2023.
• Adjusted EBITDA was +$0.1M (+$0.1M CAD) in Q3 2023 vs. $(0.1)M ($(0.1)M CAD) in Q2 2023, an increase of $0.2M despite slightly lower sales.
• Adjusted gross margin was $1.8M ($2.4M CAD) in Q3 2023 vs. $1.7M ($2.3M CAD) in Q2 2023.
• On October 5, 2023, the Company began trading on the TSX Venture Exchange ("TSXV") and in conjunction was delisted from the Canadian Securities Exchange ("CSE").

Strategic Areas of Focus

The Fresh Factory is building a platform to serve emerging food and beverage brands in the fresh-food sector with an emphasis on better-for-you products. The Company has established three key areas of focus on which it will report on a quarterly basis moving forward.

Execution: Focus on safety, high-quality operations, and strong margins.

• Adjusted gross margins, on a percentage basis, increased by 0.7% from 29.5% in Q2 2023 to 30.2% in Q3 2023.
• Operating profits increased 1.3% to $1.0M ($1.3M CAD) in Q3 2023 from $0.9M ($1.2M CAD) in Q2 2023.
• Operating profit, on a percentage basis, increased from 16.6% in Q2 2023 to 16.9% in Q3 2023 due to operational efficiencies.

Growth: Invest in and grow with the right brands across diversified channels.

• The Company onboarded four new customers, expanding its product portfolio.
• The increase in revenue through 2022 and into 2023 was due to both the addition of new customers and increased sales to existing customers, and the company expects that trend to continue.
• The Company produced 3.2M total units in Q3 2023, a 23% increase from Q3 2022.

Sustainability: Become a market leader in sustainability.

• The Company continues to use solar energy to help offset its electrical usage.
• The Company continues to compost 100% of its food waste and donate 100% of produce extras.
• The Company improved its FOG (fats, oils, grease) mitigation system, enabling better collection and recycling of the oils used in production and improving the quality of wastewater expelled from the facility.
• The Company launched a project to determine the Scope 1 and Scope 2 carbon-emissions output from each of its production facilities and vehicles.

The earnings news release should be read in conjunction with the Company's interim financial statements for the quarterly and year-to-date financial results for the period ending September 30, 2023, which can be found on The Fresh Factory's issuer profile on SEDAR+ at www.sedarplus.ca.