BONITA SPRINGS, Fla., Jan. 12, 2024 (GLOBE NEWSWIRE) — Innovative Food Holdings, Inc. (OTCQB: IVFH) (“IVFH”, “Company”, “we”, or “our”) is a professional The company, which sells gourmet specialty foods to chefs, today announced, with the unanimous support of its board of directors, that it will restructure its home gourmet e-commerce business. IVFH also announced the completion of the previously announced sale of two entities: Oasis Sales Corp. and Organic Food Brokers, LLC (both dba “Grow Brand Management”). Finally, the company also announced that it has agreed to sell its subsidiary Hayley Food Group.
As discussed in the Q3 2023 earnings call, IVFH will reduce focus and spending on unprofitable and non-core businesses and reduce its is in the stabilization stage. The restructuring of the Home Gourmet Business will involve the reduction of approximately 20 employees, the suspension of paid marketing related to the business, and a 50% reduction in the product lineup. The Company expects the financial impact of these actions to reduce annual revenue by approximately $6 million and increase annual earnings by approximately $650,000. Additionally, temporary restructuring costs will cost him $100,000 to $200,000.
The sale of the Grow Brand Management business will reduce annual revenue by approximately $1 million, but will not have a material impact on earnings. The consideration for the Grow transaction was $225,000, including cash balances, or $75,000 less cash balances. Finally, the final sale of Haley Food Group is for the return of approximately 21,000 shares of IVFH stock to us, resulting in approximately $175,000 less revenue and approximately $75,000 increase in earnings. It will be. The transaction is expected to close within the next 60 days.
Bill Bennett, CEO of IVFH, said: “As we stated in our third quarter earnings call, IVFH has lost more than $12 million in the five years we have owned our home gourmet e-commerce business, overshadowing our profits. Business. We understand that restructuring a business is never an easy process and it takes a personal toll. However, the measures announced today will help our employees grow their careers, our company's This is an important step in building a healthier, more resilient company that enables us to grow our profits and better serve our customers. This strategic shift allows us to commit resources and significantly improve our Frees you to focus on business areas that drive sales and profit growth. Additional focus and I remain excited by the significant new customer and channel opportunities that we are freeing up resources to pursue. We continue to sell our Bonita Springs, Florida building with the goal of eliminating all long-term debt. We continue to sell or lease buildings in Mountain Top, Pennsylvania. We also continue to pursue appropriate internal and external investments and acquisitions that can deliver immediate results and unlock growth synergies with our existing businesses. I continue to look for opportunities.”
About Innovative Food Holdings Co., Ltd.
At IVFH, we can help you make your meal special. We provide access to foods that are hard to find, have a compelling story, or are at the forefront of food trends. Our gourmet food marketplace connects the world's best artisan food manufacturers with the nation's top professional chefs. We carefully select our selections, experiences, and technology-enabled tools to help you create unforgettable experiences for your guests and your family.
Additional information is available at www.ivfh.com.
Forward-looking statements
This release contains certain forward-looking statements and information about Innovative Food Holdings, Inc. (the “Company”) that are based on our management's current beliefs, assumptions made by management, and Based on currently available information. company. Such statements reflect the Company's current views regarding future events and are subject to certain assumptions, including those described in this release. “may”, “should”, “expect”, “plan”, “intend”, “project”, “believe”, “anticipate”, “hope”, “estimate” Words such as , “goals” and variations thereof and similar expressions are intended to identify forward-looking statements. If one or more of these underlying assumptions prove incorrect, actual results may differ materially from those stated herein. These statements involve significant known and unknown risks, are based on a number of assumptions and estimates, and are inherently subject to significant uncertainties and contingencies, many of which is beyond the control of. Other factors that could cause actual results to differ are materially related to international crises, environmental and economic issues, and other risk factors described in the Company's public documents. Except to the extent required by law, we do not intend to update or revise any forward-looking statements contained herein to reflect changes in our expectations with respect to them or to reflect changes in events or conditions. We expressly disclaim any obligation or undertaking to publish. or the circumstances on which the statement is based.
Investor and Media Contact:
Gary Schubert
CFO
Innovative Food Holdings Co., Ltd.
InvestorRelations@IVFH.com
