Organto Foods Announces Record First Quarter 2025 Financial Results
TORONTO, ON AND BREDA, THE NETHERLANDS / ACCESS Newswire / May 28, 2025 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF)(FSE:OGF) ("Organto" or "the Company"), is pleased to announce its financial results for the three months ended March 31, 2025. All amounts are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS), except where specifically noted.
Hi-Lites
Sales of $13.6 million, an increase of 193.5% versus the prior year. Largest quarterly sales in the history of the Company and representing 66% of total fiscal 2024 sales.Gross profit of $1.1 million, an increase of 298.1% versus the prior year. Largest quarterly gross profit dollars in the history of the Company.Cash operating expenses of 6.8% of sales versus 10.5% in the prior year. Lowest cash operating expenses as a percentage of sales in the history of the Company.Income from operations of $0.1 million versus a loss of $0.3 million in the prior year.EBITDA(1) (Earnings before interest, taxes, depreciation and amortization) of $0.3 million, the first positive EBITDA quarter in the history of the Company.
"We're very pleased with our first-quarter 2025 results, which we believe are a powerful reflection of the strong momentum building in our business. These results are the direct outcome of the extensive restructuring and strategic realignment we've executed over the past 18 months, laying a solid foundation for sustained growth, stability, and a clear path to profitability.
As our results reflect, we have made substantial progress: we've streamlined our product portfolio, re-energized our go-to-market strategies, and significantly reduced operating costs. The first quarter of 2025 delivered exceptional sales and margin growth, all on a leaner, more efficient cost base, resulting in our first-ever positive EBITDA quarter. With strong, ongoing momentum and a continued focus on achieving positive cash flow, we're moving forward with confidence. Our recent successful private placement, shares-for-debt settlements, and the imminent conversion of our convertible debentures into equity only amplify our excitement about what's ahead. We're passionately committed to building a world-class company serving the fast-growing healthy foods market, and in doing so creating lasting value for our partners, customers, team, and shareholders", commented Steve Bromley, Chair and Chief Executive Officer.
Fiscal 2025 First Quarter Results Overview
Sales of $13.6 million versus $4.6 million in the prior year, an increase of approximately 194%. Sales grew as new customers were added, while a number of existing customers increased their purchases. Q-1 sales represent the largest quarterly sales in the history of the Company and 66% of total fiscal 2024 sales.Gross profit of $1.1 million or 8.2% of sales, versus $0.3 million or 6.0% of sales in the prior year, an increase of approximately 298% in gross profit dollars. Adjusted gross profit(1) was $1.1 million or 8.3% of sales when accounting for the impact of realized gains on derivatives, versus $0.2 million or 4.7% of sales in the prior year.Cash operating expenses of $0.9 million or 6.8% of sales versus $0.5 million or 10.5% of sales in the prior year. Operating expenses have stabilized following the sales of three subsidiaries in Q-2 2024 and reflect the increased costs of operating that were previously borne by the sold subsidiaries. First quarter costs include approximately $20,000 in legal and listing fees related to re-listing activities.Income from operations of $0.1 million versus a loss of $0.3 million in the prior year. Adjusted income from operations of $0.2 million in the first quarter, when adjusted for costs associated with re-listing and realized gains on derivatives.Net loss for the period of $0.3 million after accounting for interest and accretion costs of $0.3 million and unrealized losses on derivative assets and liabilities of $0.2 million, versus a loss in the prior year of $1.5 million which includes discontinued operations.EBITDA(1) of $0.3 million versus a loss in the prior year of $1.2 million
The Company's filings, including Audited Financial Statements and accompanying Management's Discussion and Analysis for the year ended December 31, 2024 at www.SEDARplus.ca or at the Company's website at www.organto.com under the Investors tab.
Grant of Stock Options
The Company has also granted stock options (the "Options") exercisable to acquire up to 1,400,000 common shares to directors, officers and employees of the Company at a price of $0.35 per common share, expiring on May 27, 2030. 775,000 of the Options granted will vest 25% immediately and 25% every six months thereafter; and 625,000 of the Options granted will vest 20% immediately and 20% on each anniversary thereafter.
The Options were granted pursuant to the Company's stock option plan which was last approved by shareholders at the Annual Meeting of Shareholders on March 12, 2025.
ON BEHALF OF THE BOARD,
Steve BromleyChair and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
For more information contact:Investor Relationsinfo@organto.comJohn Rathwell, Senior Vice President, Corporate Development and Investor Relations647 629 0018
The information presented herein refers to the non-IFRS financial measures of adjusted gross profit and EBITDA. We hedge currencies for certain product categories where either the supply or sales commitments are fixed in foreign currencies. The gains and losses from these hedging activities are combined with gross profit to determine adjusted gross profit. We also refer to EBITDA, which is Earnings before interest, taxes, depreciation and amortization. These two measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Non-IFRS financial measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS and are unlikely to be comparable to similar measures presented by other issuers. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective and thus highlight trends in its business that may not otherwise be apparent when relying solely on IFRS measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of the Company. The Company's management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period and to prepare annual operating budgets and forecasts.
ABOUT ORGANTO
Organto is an integrated provider of branded, private label, and distributed organic and non-GMO fruit and vegetable products using a strategic asset-light business model to serve a growing socially responsible and health-conscious consumer around the globe. Organto's business model is rooted in its commitment to sustainable business practices focused on environmental responsibility and a commitment to the communities where it operates, its people, and its shareholders.
FORWARD LOOKING STATEMENTS
This news release may include certain forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"). In particular, and without limitation, this news release contains forward-looking statements respecting Organto's business model and markets; Organto's belief that the Company has made solid progress in the restructuring and realignment of its business focused on a clear path to profitability, sustained growth and long-term stability; Organto's belief that the impact of these restructuring efforts is a key driver of its first quarter results; Organto's belief that the combination of financing and debt restructuring efforts combined with strong sales and margin growth on a streamlined cost base positions the Company for an exciting future; Organto's belief that it remains focused on building a world class company focused on growing healthy foods markets with the gaol of building shareholder value; management's beliefs, assumptions and expectations; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about the following: the ability and time frame within which Organto's business model will be implemented and product supply will be increased; cost increases; dependence on suppliers, partners, and contractual counter-parties; changes in the business or prospects of Organto; unforeseen circumstances; risks associated with the organic produce business generally, including inclement weather, unfavorable growing conditions, low crop yields, variations in crop quality, spoilage, import and export laws, and similar risks; transportation costs and risks; general business and economic conditions; and ongoing relations with distributors, customers, employees, suppliers, consultants, contractors, and partners. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing except as required by law.
SOURCE: Organto Foods, Inc.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hamilton Spectator
an hour ago
- Hamilton Spectator
Speech from OPEC head to kick off Global Energy Show in Calgary
CALGARY - More than 30,000 people from 100 countries are expected to descend on the white-collar heart of Canada's oilpatch next week for the Global Energy Show, which is to kick off with a keynote address from the head of the Organization of the Petroleum Exporting Countries. OPEC secretary-general Haitham al-Ghais is set to deliver remarks on Tuesday morning, as recent output increases from his group's members and other producers have put pressure on global crude prices. Among the other speakers are 20 chief executives from major Canadian and international energy companies and several political leaders, including Alberta Premier Danielle Smith. Energy show organizers say Calgary is expecting a 30 per cent increase in hotel bookings for the conference and trade show, and that exhibition space has been increased by one fifth year-over year. Nick Samain, senior vice-president at DMG Events, said as of two weeks before the event, pre-registrations were 78 per cent higher than last year. He says the show is seeing a big turnaround since the oil bust of 2015 and the COVID-19 pandemic. 'There's a sense of optimism that the show really hasn't had in a long time,' Samain said in an interview. 'Operationally, we've been going crazy to make sure we've got enough room for everybody.' The exhibition hall in the newly refurbished BMO Centre on the Calgary Stampede grounds is to feature a record 11 country pavilions and 500 company booths. The event was called the Global Petroleum Show until 2020, when it was rebranded to highlight the growing number of non-oil-and-gas participants in the energy space, such as nuclear and renewables firms. Samain said at the trade show, oil and gas makes up about 70 per cent of exhibitors, with other forms of energy making up the rest. The conference comes as U.S. President Donald Trump's tariff war throws global trade into disarray, raising the prospect of a global downturn that could dampen energy demand. The trade strife has driven calls for Canada to diversify its export markets for its energy products beyond its biggest customer, the United States, and remove some of the logjams that have prevented infrastructure from being built over the past several years. Prime Minister Mark Carney has promised to speed up and simplify the regulatory process for projects deemed in the national interest. Samain said the show is an opportunity for people to hash out competing views about Canada's energy future. 'We're just big proponents of people meeting face to face,' he said. 'We find when people get together at an event like this, it really does (give) the opportunity for people maybe to see a different perspective.' A week after the Global Energy Show, another major event drawing dignitaries from abroad is to take place in a popular recreation area in the Rocky Mountains an hour west of Calgary. Canada is to host leaders from the United States, France, Germany, Japan, the United Kingdom, Italy and the European Union at the G7 summit from June 15 to 17 in Kananaskis. This report by The Canadian Press was first published June 6, 2025.
Yahoo
2 hours ago
- Yahoo
Speech from OPEC head to kick off Global Energy Show in Calgary
CALGARY — More than 30,000 people from 100 countries are expected to descend on the white-collar heart of Canada's oilpatch next week for the Global Energy Show, which is to kick off with a keynote address from the head of the Organization of the Petroleum Exporting Countries. OPEC secretary-general Haitham al-Ghais is set to deliver remarks on Tuesday morning, as recent output increases from his group's members and other producers have put pressure on global crude prices. Among the other speakers are 20 chief executives from major Canadian and international energy companies and several political leaders, including Alberta Premier Danielle Smith. Energy show organizers say Calgary is expecting a 30 per cent increase in hotel bookings for the conference and trade show, and that exhibition space has been increased by one fifth year-over year. Nick Samain, senior vice-president at DMG Events, said as of two weeks before the event, pre-registrations were 78 per cent higher than last year. He says the show is seeing a big turnaround since the oil bust of 2015 and the COVID-19 pandemic. "There's a sense of optimism that the show really hasn't had in a long time," Samain said in an interview. "Operationally, we've been going crazy to make sure we've got enough room for everybody." The exhibition hall in the newly refurbished BMO Centre on the Calgary Stampede grounds is to feature a record 11 country pavilions and 500 company booths. The event was called the Global Petroleum Show until 2020, when it was rebranded to highlight the growing number of non-oil-and-gas participants in the energy space, such as nuclear and renewables firms. Samain said at the trade show, oil and gas makes up about 70 per cent of exhibitors, with other forms of energy making up the rest. The conference comes as U.S. President Donald Trump's tariff war throws global trade into disarray, raising the prospect of a global downturn that could dampen energy demand. The trade strife has driven calls for Canada to diversify its export markets for its energy products beyond its biggest customer, the United States, and remove some of the logjams that have prevented infrastructure from being built over the past several years. Prime Minister Mark Carney has promised to speed up and simplify the regulatory process for projects deemed in the national interest. Samain said the show is an opportunity for people to hash out competing views about Canada's energy future. "We're just big proponents of people meeting face to face," he said. "We find when people get together at an event like this, it really does (give) the opportunity for people maybe to see a different perspective." A week after the Global Energy Show, another major event drawing dignitaries from abroad is to take place in a popular recreation area in the Rocky Mountains an hour west of Calgary. Canada is to host leaders from the United States, France, Germany, Japan, the United Kingdom, Italy and the European Union at the G7 summit from June 15 to 17 in Kananaskis. This report by The Canadian Press was first published June 6, 2025. Lauren Krugel, The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 hours ago
- Yahoo
Loblaw pulls Folgers coffee from shelves over 'unjustified' cost increases
Shoppers at Loblaw Cos. Ltd.'s stores will soon no longer be able to get a coffee fix by purchasing Folgers-brand products after a pricing dispute prompted the grocer to pull them from its shelves. In an email sent to retailers on Wednesday, Loblaw said it decided to delist all Folgers products after talks with the coffee maker's manufacturer couldn't solve the impasse. "After several weeks of negotiations, we were unable to reach an agreement with the manufacturers of Folgers coffee regarding their significant and unjustified proposed price increases," said the email signed by Loblaw category director Suren Theivakadacham and obtained by The Canadian Press. "We are doing this because we are on the side of customers, and doing what we can to keep prices low ... This decision to delist Folgers coffee reflects our commitment to providing value for customers by not accepting unreasonable cost increases that would hurt Canadians." The email contained an attached list of alternative coffee products the grocer offers as stores prepare to update their shelves. The move comes as coffee prices continue to rise in Canada. Last month, Statistics Canada reported the price of coffee and tea was up 13.4 per cent in April on a year-over-year basis — outpacing both the 3.8 per cent increase in the cost of groceries that month, as well as Canada's overall inflation rate of 1.7 per cent. Experts say higher coffee prices are in part due to recent extreme weather and changes in temperature, which have caused some producers to experience lower yields. Other pressures include a weak Canadian dollar, making it more expensive to import coffee to Canada from other countries, along with the fact coffee is one of the products still subject to Canada's retaliatory tariffs against the U.S. While the U.S. isn't a major producer of coffee, Canadian distributors often purchase it from American brokers. Folgers products are made by the Orrville, Ohio-based J.M. Smucker Co., which raised prices of its coffee offerings both last June and October in response to higher costs it is facing. President and CEO Mark Smucker told analysts on the company's quarterly earnings call in February that more coffee price increases were likely on the way. He said pricing decisions are dictated by costs it faces. "Although we haven't laid out when other pricing is going to happen, we do expect it's going to happen in the next fiscal year, probably in the first half," Smucker said at the time. In a statement, the company said it has been experiencing "record high and sustained" prices of unroasted coffee beans. "Our pricing actions have been managed prudently and responsibly and have only been taken when justified by costs," said Smucker's spokesman Frank Cirillo in an email on Thursday. "We remain dedicated to working with all our retail partners to manage increased input costs while delivering value to our shared consumers." But Loblaw spokeswoman Catherine Thomas said Folgers' proposed cost increases were "unreasonable and unjustified based on underlying costs" and that the grocer felt it was important to push back as many Canadians continue to struggle with unaffordability. "Despite several attempts to address this with the manufacturer, we were not successful," Thomas said in a statement. "We will not accept or pass unjustified cost increases on to customers and therefore we have removed Folgers from our shelves ... We recognize this may create some inconvenience for customers and for that we apologize but again, we will do what is right to help address price increases." Thomas added Loblaw expects most of its stores to be out of stock of Folgers products over the next week or two. This report by The Canadian Press was first published June 5, 2025. Companies in this story: (TSX:L) Sammy Hudes, The Canadian Press Sign in to access your portfolio
