Organto Foods Inc. has announced its audited financial results for the fiscal year ending December 31, 2024. All figures are in Canadian dollars and follow IFRS standards.
In 2024, Organto underwent significant restructuring, including the sale of three subsidiaries and internal reorganization. These changes aimed to streamline operations, reduce costs, and improve the company's financial outlook. As a result, full-year revenue rose by 48% to $20.7 million, up from $14.0 million in 2023, supported by new business and growth with existing customers. The fourth quarter recorded the highest sales of the year at $6.5 million, more than double the $3.1 million posted in Q4 2023.
Gross profit for the year was $1.8 million, up 35% from $1.3 million in 2023, though margins declined slightly to 8.5% from 9.3%. Adjusted gross profit, accounting for gains on derivatives, stood at 8.6%. Cash operating expenses increased to $3.3 million (15.8% of sales), compared to $2.3 million (16.6%) the prior year, due to the consolidation of costs from sold subsidiaries and one-time charges, including $217,000 in legal and listing fees and a $246,600 management bonus accrual.
Loss from operations in 2024 was $2.4 million, compared to $1.7 million in 2023. On an adjusted basis, excluding non-cash compensation and restructuring expenses, the operating loss was $1.3 million, slightly lower than the $1.8 million adjusted loss in the prior year. Net loss from continuing operations was $3.3 million, down from $5.6 million, reflecting improved earnings and reduced interest expenses. Including discontinued operations, the net loss was $2.0 million, a marked improvement from the $13.4 million loss in 2023.
The company also reported a $0.4 million gain from winding down its Argentina subsidiary and a $2.6 million gain from the sale of its European subsidiaries in June 2024.
In the fourth quarter, gross profit was $0.6 million (9.1% of sales), doubling from the previous year. Adjusted gross profit was $0.7 million or 10.7%. Q4 operating expenses totaled $1.2 million, and the adjusted operating loss was $0.3 million. The net loss for the quarter, including discontinued operations, was $1.7 million, down from $7.5 million in Q4 2023.
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For more information:
John Rathwell
Organto
Tel: +1 647 629 0018
Email: [email protected]
www.organto.com