Mr. Andrew Barnes reports

COHO COLLECTIVE KITCHENS INC. REPORTS Q2 2024 RESULTS

Coho Collective Kitchens Inc. has filed its unaudited Q2 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 six months ended Sept. 30, 2023, can be viewed by visiting the company's website or its profile on SEDAR+.

Q2 financial highlights

• Revenue increased 149 per cent YoY (year over year) to $1,633,917 in Q2 2024 from $646,295 in Q2 2023;
• Gross profit increased 146 per cent YOY from to $1,348,664 in Q2 2024 from $546,901 in Q2 2023;
• The Purebread acquisition added $435,453 of revenue in Q2 2024 for the 11-day stub period ending Sept. 30, 2023;
• Despite over 149-per-cent and 146-per-cent growth in revenue and gross profit, respectively, in Q2 2024 versus Q2 2023, expenditures increased by 25 per cent in the same comparative period (including professional fees related to the acquisition).

Management commentary

"Today marks a significant milestone for Coho Collective Kitchens as we announce our strong Q2 financial results," commented Andrew Barnes, chief executive officer. "The impressive growth in Coho operations and the positive impact of the newly acquired Purebread, along with contributions from our strategic partners, have exceeded expectations. This noteworthy success was achieved while tightly managing expenses, demonstrating our commitment to efficiency and the strength of our collaborative partnerships. We've proven that sustainable growth is achievable while generating increasing returns. We're excited about the continued growth ahead and remain focused on delivering value to our stakeholders."

Subsequent to quarter-end:

1. The company, including Purebread, delivered a record month in October, 2023, generating over $1.4-million in revenue.
2. As announced on Oct. 18, 2023, Purebread intends to open two new locations in British Columbia.
3. As announced on Nov. 23, 2023, Purebread successfully served its 100,000th customer at its YVR location, achieving this target faster than previously forecasted. This location demonstrates Purebread's ability to scale its operations to high-volume locations.

Operating highlights for the quarter

• As announced on Aug. 28, 2023, Coho entered a strategic partnership with Sodexo Canada, a global leader in food services and facilities management. Sodexo Canada will support Coho in expanding its private and shared kitchen services, investing $400,000 in a new 26,000-square-foot facility in Richmond, B.C. The partnership, initially focused on British Columbia, aligns with Coho's North American growth strategy, demonstrating a joint commitment to supporting local businesses and communities.
• As announced on Sept. 20, 2023, the recent completion of the Purebread acquisition marks a significant milestone for the company. Purebread has already surpassed the company's growth expectations for the 2024 fiscal year. Notably, Purebread's new Vancouver International Airport location has boosted revenue by 30 per cent, contributing to Purebread's 15-plus years of profitable operations.
• Coho Collective achieved its best results ever in customer satisfaction, measured by the company's net promoter score (NPS), and also was awarded the coveted title of one of Canada's best new restaurants for its restaurant Brassica, by En Route Magazine, solidifying its position as a culinary leader in innovation and excellence.

About Coho Collective Kitchens Inc.

Coho is a growing player in commercial real estate and food technology, operating fast-casual restaurants and shared-kitchen facilities. As Canada's largest shared-kitchen company, Coho is expanding its presence and services. Through their combined efforts, Coho and Purebread strive to positively impact the communities in which they operate.

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