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• Revenue of $23.0 million, +19.2% vs. Q4 2023

• Organic revenue growth ⁽¹⁾ of +44.3% vs. Q4 2023

• Gross margin declined by 235 basis points vs. Q4 2023 to 20.9%

• GAAP net income (loss) from continuing operations of ($0.2) million vs. ($1.4) million in Q4 2023

• GAAP net income (loss) from continuing operations per fully diluted share of ($0.001) vs. ($0.034) in Q4 2023

• Non-GAAP adjusted net income from continuing operations of $618 thousand vs. $197 thousand in Q4 2023

• Non-GAAP adjusted net income per fully diluted share of $0.012 vs. $0.004 in Q4 2023

• Non-GAAP adjusted EBITDA of $880 thousand vs. $559 thousand in Q4 2023

• Completed acquisition of Denver-based Golden Organics and Fort Collins-based LoCo Food Distribution

• New retail sales channel generated $5.3 million in revenue

• New acquisitions contributed $838 thousand in revenue
  

(1)   Organic revenue growth excludes the impact of divestitures and acquisitions

Mr. Bennett continued, “Q4 2024 represented the first quarter of the ramp up of our new retail customer, as well as six weeks of contribution from our new Golden Organics business, and one week from our new LoCo Foods Distribution business. While revenue grew 19.2% compared to last year, organic revenue growth, which excludes the impact of divestitures and acquisitions, was an impressive 44.3% despite continued softness in our business with our largest drop ship customer. The new retail customer accounted for 79% of the increase in organic revenue. Despite a 235 basis point decline in our total company gross margin rate, gross margin dollars rose by $0.3 million on an additional $3.7 million in revenue. Excluding non-cash stock compensation and non-recurring fees, SG&A spend increased by $86 thousand, with SG&A as a percentage of revenue improving by 377 basis points. We are pleased with this performance, as we effectively managed expenses while significantly increasing growth-related spending compared to the same period last year. GAAP Net Income improved by $1.2 million vs. Q4 2023. Adjusted EBITDA improved by $321 thousand vs. Q4 2023 to $880 thousand in Q4 2024, despite the profit headwind of approximately $700 thousand driven by the ramp up of the retail business.”

Mr. Bennett added, “We’re very pleased to see our new growth businesses and acquisitions begin to materialize this quarter and demonstrate the growth potential of the Company. We also continue to see strong growth with our new national distributor partner announced last Spring, triple-digit growth in our Amazon sales channel, double-digit growth in our airline catering business, and double-digit growth in our Chicago Artisan business. In fact, we are continuing to experience greater than 25% organic growth in the first quarter-to-date of 2025. We’re also thrilled to have recently announced in Q1 of 2025 that the large retail customer we on-boarded in 2024 has expanded their program with us, and that we won a first-class custom cheese program with an international airline, which represents a new line of business for us.”

“The Company has a solid foundation, a passionate and committed team, and an industry with tremendous long-term potential. We recognize the importance of maintaining a laser focus on our top priorities in a complex economic environment to create a robust, profitable, and sustainable business model. As we navigate the ever-changing landscape of the food industry, we believe in our ability to adapt, innovate, and capitalize on opportunities focused on driving long-term shareholder value,” concluded Mr. Bennett.

Conference Call
The Company’s management will hold an investor call on March 7, 2025 at 10:00 am Eastern Time to discuss the Company's results for the quarter and year ended December 31, 2024. At the end of the meeting, the Company will host a question-and-answer session with investors. All interested participants may attend the call on the web or by phone. The Company encourages those who wish to ask questions to join the call virtually through Zoom, rather than on the phone, as Zoom’s “raise hand” feature makes it easier for management to identify questioners. Details for the meeting are as follows:

Join Zoom Meeting
https://us02web.zoom.us/j/84531400931?pwd=OxjOExa1VI0lDeGIzxplrD7iFwAIGX.1

Meeting ID: 845 3140 0931
Passcode: 000164

One tap mobile
+12532158782,,84531400931# US

About Innovative Food Holdings, Inc.
At IVFH, we help make meals special. We provide access to foods that are hard to find, have a compelling story, or are on the forefront of food trends. Our gourmet foods marketplace connects the world’s best artisan food makers with top professional chefs nationwide. We curate the assortment, experience, and tech enabled tools that help our professional chefs create unforgettable experiences for their guests. Additional information is available at www.ivfh.com.

Forward-Looking Statements
This release contains certain forward-looking statements and information relating to the Company that are based on the current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, the Company. Such statements, including those related to the Company’s growth plans, reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein, which include words such as “should,” “could,” “will,” “anticipate,” “believe,” “intend,” “plan,” “might,” “potentially” “targeting” or “expect”, or similar expressions. Additional factors that could also cause actual results to differ materially relate to current conditions and expected future developments, international crises, environmental and economic issues and other risk factors described in the Company’s public filings. As a result, readers are cautioned not to place undue reliance on these forward-looking statements and should understand that these statements are not guarantees of performance or results and that there are a number of risks, uncertainties and other important factors, many of which are beyond the Company’s control, that could cause the Company’s actual results to differ materially from those expressed in these statements, including, among others: economic factors affecting consumer confidence and discretionary spending; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; and changes in the Company’s relationships with vendors and customers. The Company does not intend to update these forward-looking statements.

For a detailed discussion of these risks, uncertainties and other factors that could cause the Company’s actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”). Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Company with the SEC, which are available on the SEC’s website at https://www.sec.gov/.

Investor and Media contact:
Gary Schubert
Chief Financial Officer
Innovative Food Holdings, inc.
investorrelations@ivfh.com 

(1)   Includes non-cash depreciation and amortization charges.
(2)   Earnings before interest, taxes, depreciation, and amortization
(3)   Includes stock and options-based compensation and expenses.
(4)   Adjusted EBITDA is a non-GAAP metric. Management believes that the presentation of Adjusted EBITDA and other non-GAAP financial measures provides useful information to investors because the information may allow investors to better evaluate ongoing business performance and certain components of the Company’s results. In addition, the Company believes that the presentation of these financial measures enhances an investor’s ability to make period-to-period comparisons of the Company’s operating results. This information should be considered in addition to the results presented in accordance with GAAP, and should not be considered a substitute for the GAAP results.
(5)   Adjusted Net Income accounts for the impact of non-core expenses including addback for one-time organizational restructure expenses, gains or losses on sale of assets or subsidiaries, tradename impairments, amortization expense, expense on the extinguishment of debt, and stock related expenses in both 2024 and 2023
(6)   GAAP weighted average shares outstanding.
(7)   Adjusted Gross profit is gross profit adjusted to remove the impact of inventory reserve adjustments or non-recurring inventory related gains or losses.
(8)   Maintenance Capital Expenditures is a component of “Acquisition of property and equipment (GAAP)” on the consolidated statement of cash flows. It represents management’s assumptions of capital spending to maintain the company’s current level of operations. It does not include expenditures on acquisitions (less cash acquired), nor does it include other capital expenditures made to fund growth of the current business.
(9)   Adjusted Free Cash Flow is defined as Adjusted EBITDA less interest expense, income tax expense, and maintenance capital expenditures. The company believes adjusted free cash flow is useful to investors in understanding how existing cash flow from operations before working capital changes and non-recurring items after maintenance capital expenditures (which we believe the best proxy for over time is Adjusted EBITDA less interest expense, income tax expense, and maintenance capital expenditures) is utilized as a source of growing our business. Adjusted Free Cash Flow is not a measure of cash available for discretionary expenditures since the company has certain non-discretionary obligations that were not deducted from the measure.