Organto Foods Inc., an integrated provider of organic and value-added organic fruits and vegetables today announced financial results for the year and quarter ended December 31, 2020. All amounts are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS), except where specifically noted.
Highlights:
Fiscal 2020 Operating Results:
- Record revenues of $11,448,036 versus revenues in the prior year of $3,712,167, an increase of approximately 208%. Fiscal 2020 revenues represent the largest annual revenues in the history of Organto, in-line with revenue guidance provided.
- Record gross profit of $1,072,942 or 9.4% of revenues versus $220,421 or 5.9% of revenues in the prior year, an increase of approximately 386% and the largest annual gross profit in the history of Organto.
- Cash overhead costs for the year reduced to 22.8% of revenues versus 53.0% in the prior year. These costs include approximately $311,100 related to retail branded product development and on-line digital transformation activities and acquisition related costs, all of which are not expected to generate returns until fiscal 2021 and beyond. Excluding these investments, cash overhead costs reduced to 20.0% of revenues in fiscal 2020.
Fourth Quarter Operating Results:
- Record revenues of $4,937,180 versus revenues in the prior year of $1,583,616, an increase of approximately 212% versus the same quarter in the prior year. Fourth quarter revenues represent the largest quarterly revenues in the history of Organto, in-line with revenue guidance previously provided.
- Record gross profit of $394,010 or 8.0% of revenues versus $69,627 or 4.4% of revenues in the prior year, an increase of approximately 465% versus the same quarter in the prior year, and the largest quarterly gross profit in the history of Organto.
- Cash overhead costs for the quarter reduced to 17.9% of revenues versus 35.0% in the prior year. These costs include approximately $217,500 related to retail branded product development and online digital transformation activities and acquisition related costs, all of which are not expected to generate returns until fiscal 2021 and beyond. Excluding these investments, cash overhead costs reduced to 13.9% of revenues in the fourth quarter.
Fiscal 2020 Results
Revenues for the year ended December 31, 2020 were $11,448,036 as compared to $3,712,167 for the prior year, an increase of more than 200%. The increase in revenues was driven by a combination of new customers, new product introductions and increased supply of core product offerings. We realized gross profit of $1,072,942 or approximately 9.4% of revenues as compared to $220,421 or approximately 5.9% of revenues in the prior year. This is indicative of the solid progress we have made as our asset light operating model has been expanded in hand with the addition of new customers, new sources of supply and new product offerings, as well as a rationalized cost base.
Read the full press release here.
For more information:
Organto Foods Inc.
Email: info@organto.com
Web: organto.com