Organto Foods Inc., an integrated provider of organic and non-GMO fruit and vegetable products today announced financial results for the quarter ended March 31, 2023. All amounts are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS), except where specifically noted.
First Quarter 2023 Operating Highlights
- Sales of $7,503,529 versus sales of $6,999,864 in the prior year, an increase of approximately 7.2% and approximately 4% on a currency adjusted basis.
- Sales in the first quarter represent the largest quarterly sales in the history of Organto.
- Sales in the first quarter represent the fifteenth consecutive quarter of record sales growth, currency adjusted, versus the same quarter in the prior year.
- Sales at the top end of previously provided first quarter sales guidance of $7.4 million to $7.5 million.
- Gross profit of $731,244 or 9.7% of sales versus $670,602 or 9.6% of sales in the prior year. When adjusted for the realized gain on derivative assets and liabilities which is from currency hedging directly related to product purchases, adjusted gross profit(1)was $736,627 or approximately 9.8% of sales versus 9.7% in the prior year.
- Gross profit for the quarter represents the largest quarterly gross profit in the history of Organto.
- First quarter adjusted gross profit(1) as a percentage of sales increased 380 basis points versus the fourth quarter of 2022 as actions taken by the Company to address significant macro-economic challenges realized in 2022 began to contribute positively.
- Adjusted gross profit(1) for the first quarter of 9.8% exceeded previously provided quarterly gross profit guidance of 9.4% to 9.6%.
- Cash overhead costs for the quarter were 27.1% of sales, 23.5% on an adjusted basis, versus 25.7% in the prior year. Costs include investments in infrastructure and resources required to support growth initiatives.
Balance sheet highlights as March 31, 2023
- Cash of $2,159,885 including $113,902 of restricted cash related to currency hedging facilities.
- Working capital of $1,080,060
- Non-current liabilities of $9,035,126.
"We are pleased with our progress in the first quarter as we have realized the largest quarterly sales in our history, and most importantly, started to realize the benefits of initiatives we continue to implement to improve our gross profit profile following the macro-economic challenges we faced in 2022. We continue to implement initiatives to profitably build our business, and we believe we have good momentum as we exit the first quarter," commented Steve Bromley, Chair and Co-CEO of Organto Foods Inc. and Rients van der Wal, Co-CEO of Organto Foods Inc. and CEO of Organto Europe BV.
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For more information:
John Rathwell
Organto Foods Inc.
Tel.: +1 647 629 0018
info@organto.com