Rocky Mountain Chocolate Factory Q1 revenue falls on lower royalty, marketing fees - RMCF News | RalliesRocky Mountain Chocolate Factory Q1 revenue falls on lower royalty, marketing fees
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RMCF• Result drivers
- PRICE INCREASES - 3% increase in Durango product and retail sales attributed to higher prices
- LOWER FRANCHISE FEES - Revenue decline driven by lower royalty and marketing fees under revised franchise agreements
- HIGHER OPERATING COSTS - Increased costs tied to franchise website and delivery platform rollout, and more company-owned stores
Quarterly results
- US chocolate retailer's fiscal Q1 revenue fell 4% yr/yr to $6.1 mln
- Company posted net loss of $1.2 mln, wider than the prior-year period
- Revenue decline driven by lower royalty and marketing fees under revised franchise agreements
Outlook and key details
- Company prioritizes improving production, fulfillment and distribution in coming quarters
- Rocky Mountain Chocolate Factory aims to pursue higher-margin product opportunities
- Company plans to evaluate debt structure and working capital at favorable terms
| Q1 Revenue | | $6.11 mln | |
| Q1 Net Loss | | $1.20 mln | |
| Q1 EBITDA | | -$600,000 | |
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