Organto Foods Inc., based in Toronto and Breda, Canada, released its financial results for the three and six-month periods ended June 30, 2025. All figures are in Canadian dollars.
Second quarter results
Sales for the second quarter reached US$12.6 million (C$17.2 million), an increase of 291 percent compared to the prior year. This represented 83 percent of total fiscal 2024 sales of C$20.7 million. Gross profit was US$0.95 million (C$1.3 million), up 352 percent. Cash operating expenses were 6.8 percent of sales compared to 13.4 percent the year before. EBITDA was reported at a loss of US$0.37 million (C$0.5 million), impacted by losses on derivatives used for currency risk management.
© Organto Foods
The quarter ended with a loss from operations of US$0.22 million (C$0.3 million). The net loss was US$5.4 million (C$7.4 million), including interest and accretion costs of US$0.15 million (C$0.2 million), realized and unrealized losses on derivatives of US$1.85 million (C$2.5 million), debt restructuring costs of US$0.52 million (C$0.7 million), and debt settlement losses of US$2.8 million (C$3.8 million). The prior year showed net income of US$1.53 million (C$2.1 million), driven by subsidiary sales and dissolutions.
Six-month results
For the first half of 2025, sales totaled US$22.5 million (C$30.8 million), an increase of 241 percent compared to the same period in 2024. Gross profit was US$1.75 million (C$2.4 million), up 325 percent. Cash operating expenses were 6.7 percent of sales, compared to 11.3 percent in the previous year. EBITDA was reported at a loss of US$0.15 million (C$0.2 million), compared to a loss of C$0.5 million in 2024.
Loss from operations was US$0.07 million (C$0.1 million), compared to US$0.44 million (C$0.6 million) in the prior year. The net loss was US$5.55 million (C$7.6 million), including interest and accretion costs of US$0.37 million (C$0.5 million), realized and unrealized losses on derivatives of US$2.0 million (C$2.7 million), debt restructuring costs of US$0.52 million (C$0.7 million), and debt settlement losses of US$2.8 million (C$3.8 million). The prior year posted net income of US$0.44 million (C$0.6 million), supported by subsidiary sales and dissolutions.
The company reported improved working capital of US$0.15 million (C$0.2 million) compared to negative working capital of US$10.9 million (C$14.6 million) at December 31, 2024. Short-term loans and convertible debentures were reduced to US$1.85 million (C$2.5 million) from US$9.3 million (C$12.5 million).
Chief executive officer Steve Bromley stated, "We're quite pleased with our results thus far in 2025, which we believe are a solid reflection of the strong momentum we are building in our business. These results are the result of the extensive restructuring and business realignment we've executed over the past 18 months."
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© Organto FoodsFor more information:
John Rathwell
Organto Foods
Tel: +1 647 629 0018
Email: [email protected]
www.organto.com
