Innovative Food Holdings, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance in revenue and profitability compared to the previous fiscal period. Total revenue for the third quarter was $17.0 million, a slight increase of $51,282 or approximately 0.3% from $16.96 million in Q3 2023. However, for the nine months ended September 30, 2024, total revenue decreased by $2.8 million (5.3%) to $49.4 million from $52.2 million in the prior year.

The company's Specialty Foodservice revenue grew by 5.5% in Q3 2024, reaching $15.6 million, driven by increased sales in airline catering and new distributor partnerships. Conversely, E-Commerce revenue fell significantly, down 38.6% to $1.1 million in Q3 2024, attributed to operational constraints and the sale of the igourmet business. Overall, the gross margin for Q3 2024 was 25.2%, down from 26.8% in Q3 2023, reflecting challenges in the consumer e-commerce segment and investments in new retail customers.

Innovative Food Holdings achieved a notable turnaround in profitability, reporting net income from continuing operations of $1.3 million for Q3 2024, compared to $123,544 in the same period last year. For the nine-month period, net income from continuing operations was $2.7 million, a significant recovery from a net loss of $2.6 million in the prior year. This improvement was supported by a decrease in selling, general, and administrative expenses, which fell by 14.1% to $3.6 million in Q3 2024.

Strategically, the company has shifted its focus from Direct to Consumer (D2C) to Business to Business (B2B) operations, resulting in the sale of subsidiaries GROW, Oasis, and Haley Food Group, as well as the abandonment of P Innovations. The company also sold intangible assets related to igourmet for $700,000, recognizing a gain of $834,463 from this transaction.

As of September 30, 2024, total current assets increased to $19.4 million from $13.6 million at the end of 2023, while total liabilities decreased significantly to $198.9 million from $335.0 million. The company reported cash and cash equivalents of $4.8 million, a decrease from $5.3 million at the end of 2023. The net working capital improved to $12.9 million, primarily due to the reclassification of the Mountaintop facility as an asset held for sale.

Management continues to focus on stabilizing the business and expanding its presence in the specialty foods market, while navigating inflationary pressures affecting costs across various operational areas.