COHO COLLECTIVE KITCHENS INC. REPORTS RECORD Q3 2024 RESULTS

Vancouver, British Columbia - February 29, 2024 - Coho Collective Kitchens Inc. (TSXV: COHO) ("Coho" or the "Company"), is pleased to announce that it has filed its unaudited Q3 2024 financial results, the highlights of which are included in this news release. The unaudited Condensed Consolidated Interim Financial Statements and Management Discussion and Analysis (“MD&A”) for the three and nine months ended December 31, 2023, can be viewed by visiting the Company's website at www.cohocollectivekitchens.com or its profile on SEDAR+ at www.sedarplus.ca.

Financial Highlights for the Quarter Ending December 31, 2023

• Revenue: The Company reported total revenue of $4,130,173 in Q3 2024, compared to $723,703 in the same period last year, representing a 471% increase. This increase was driven by: (i) strong retail revenue of $3,427,396, up 1205% year over year, largely generated from the Company’s recently acquired subsidiary, Purebread, and (ii) strong rental revenue of $702,777, up 52% year-over-year, generated from the Company’s existing and newly opened shared kitchen facilities during fiscal year 2024. 

• Gross profit: The Company reported gross profit of $3,246,030 in Q3 2024, compared to $638,696 in the same period last year, representing a 408% increase. The increase in gross profit was driven by the significant increase in revenue.

• Adjusted EBITDA(1) (non-IFRS measure): The Company reported adjusted EBITDA of $68,384 in Q3 2024, compared to $(574,034) in the same period last year, representing a $642,418 year over year improvement. The increase in adjusted EBITDA was attributed to: (i) the contribution of consistently strong profits from Purebread’s operations, (ii) revenue growth from the Company’s new and existing shared kitchen facilities, and (iii) the Company’s continuing focus to streamline administrative functions and reduce operating expenses. 

Notes:

(1) Defined as earnings (or loss) from operations, interest, taxes, depreciation and amortization, adjusted for share based compensation, accretion and non-recurring transaction costs.

(2) Non-recurring transaction costs include professional fees associated with the Company’s acquisition of Purebread on September 20, 2023 and initial public offering completed on June 9, 2022. 

Management Commentary

"Today is a significant day for Coho Collective Kitchens as we share our strong Q3 financial results," said Andrew Barnes, Chief Executive Officer. "This quarter, we saw remarkable growth in our operations and the success of our Purebread acquisition, which exceeded our expectations. Our ability to become profitable during rapid growth highlights our commitment to managing costs effectively and working well with our partners. We've shown that it's possible to grow sustainably while improving our bottom line. Looking ahead, we're focused on continuing our growth and delivering value to our stakeholders."

Subsequent to Quarter End

• As announced on February 7, 2024, Purebread posted record holiday sales (retail & digital) for the month of December.

• As announced on February 9, 2024, Coho announced the addition of two new board members, Electronic Arts CTO, Marija Radulovic-Nastic and Former Freshii CEO, Dan Haroun.

• As announced on February 21, 2024, Coho announced partnership with Entegra, the Largest Food Group Purchasing Organization in the World to help manage costs and improve supply chain management.

Operating Highlights for the Quarter

• Combined Business

• Progressed the integration of Purebread into the combined business, achieving significant reorganization and cost optimization. Both divisions now utilize shared services, contributing to top-line growth.

• Purebread 

• The newest Purebread location (opened at YVR) is meeting expectations and has become profitable within its first quarter of operation.

• Investments are being made in sales-driving initiatives, including enhancements to the culinary team, marketing, and catering, to sustain momentum.

• Purebread is aggressively pursuing expansion through low-capital, turnkey real estate opportunities that indicate strong financial returns. 

• Coho Commissaries

• Coho has entered a partnership with Sodexo for facility management, aiming to improve operational efficiency and the customer experience by leveraging Sodexo's comprehensive expertise.

• Coho Collective (excluding Purebread) has significantly reduced its workforce as part of a strategic realignment. This reduction is essential for building a more agile and efficient organization, better suited to respond to market changes quickly.

• Coho has formed a strategic partnership with Happy Belly Food Group (TSXV: HBFG), aiming to capitalize on mutual strengths and explore new growth opportunities.

Certain information provided in this news release is extracted from the unaudited Condensed Consolidated Interim Financial Statements and MD&A of the Company for the three and nine months ended December 31, 2023, and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the unaudited Condensed Consolidated Interim Financial Statements and MD&A that an investor can properly analyze this information.

About Coho

Coho Commissary and Purebread Bakery jointly enhance the food industry, combining Coho's leadership in shared kitchen spaces with Purebread's retail cafe and bakery expertise. This partnership not only expands their business reach but also enriches community experiences by fostering culinary innovation and delivering artisanal delights. Together, they exemplify a dynamic model of entrepreneurial support and consumer satisfaction, marking a significant impact on the food sector.

For more information, please visit www.cohocollectivekitchens.com or contact:

Andrew Barnes, Chief Executive Officer
Coho Collective Kitchens
andrew@cohocommissary.com
(778) 877-6513

Forward-Looking Information

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflect management's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, the ability of the Company to execute on its strategy, the growth and performance of the ghost kitchen industry globally and in Canada; risks inherent in the ghost-kitchen, retail bakery, or coffeehouse sectors in general; that future results may vary from historical results; and competition in the markets where Coho operates. Except as required by securities law, Coho does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release