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Oragin Foods Inc. (TSXV: OG, OTCQX: OGGFF) reported its financial results for Q1 ending April 30, 2022, showing a net loss of $650,278, an improvement from $907,013 in the previous year. Sales fell to $5.7 million from $7.0 million, mainly due to renovations at a retail location and impacts from COVID-19 policies. Gross profit decreased to $1,604,718 from $2,029,495. The company aims to offset short-term losses with ongoing operational improvements and expansion plans.
Positive
Improved net loss from $907,013 to $650,278 year-over-year.
Operational cost reductions led to an 11.7% decrease in store wages and benefits.
Negative
Sales decreased from $7.0 million to $5.7 million due to renovations and COVID-19 impacts.
Gross profit fell from $2,029,495 to $1,604,718 year-over-year.
TORONTO--(BUSINESS WIRE)--
Oragin Foods Inc. (“ORAGIN”, “Oragin Foods” or the “Company”) (TSXV: OG) (OTCQX: OGGFF) (FRA: 9CW) is a Canadian multi-faceted food company operating a Consumer Packaged Goods (CPG) Division where new and innovative food and beverage brands are developed, acquired, grown and commercialized as well as a Retail Division that operates one of Canada’s leading natural and organic food retailers, Organic Garage. The Company is pleased to announce its financial results for the quarter ended April 30, 2022 (“Q1”). The Company has a Fiscal Year End of January 31. All figures presented are in Canadian Dollars, the Company’s functional currency.
Q1 Financial Results (comparison to quarter ended April 30, 2021);
Net loss of $650,278 compared to $907,013 for the quarter ended April 30, 2021;
Store wages and benefits decreased by 11.7% due to management of staffing and improved efficiencies.
Sales decreased from $7.0 million to $5.7 million and was significantly impacted by Organic Garage’s renovation to one of its older retail store locations as well as changes to Government COVID-19 lockdown policies compared to the previous comparative period;
Gross Profit of $1,604,718 compared to $2,029,495 for the quarter ended April 30, 2021;
Net loss: The Company had a net loss of $650,278 for the quarter ended April 30, 2022, compared to a net loss of $907,013 for the quarter ended April 30, 2021. Net loss was attributed to a decrease in sales due to the Company’s decision to complete significant renovations at one of the older Organic Garage retail locations, non-cash stock-based compensation of $91,044, and costs incurred during the renovation, offset by decreases in store wages and benefits, professional fees and costs savings related to the Company’s phase-out of warehouse operations.
In February 2022, the Company announced the change of its name from Organic Garage Ltd. to Oragin Foods Inc. and the launch of a Consumer Packaged Goods (CPG) Division which currently has one portfolio company, the Future of Cheese, and separate operations through ORAGIN’s Retail Division (Organic Garage).
Matt Lurie, CEO of ORAGIN, commented, “We achieved several operational goals during the quarter, including a significant renovation to one of our locations. The impact of the renovations was felt through our reported results; however, we expect that the short-term negative impacts will be offset by the long-term expectations for the location, including enhanced customer experience and operational efficiencies. Consistent branding and unified offerings across all our locations is a focus for the Company with our existing locations as we plan for future store expansion. The Company now has the majority of its locations with consistent award-winning branding and services, and the decision to engage in the renovation during this time was part of our long-term planning.
“In relation to the Future of Cheese, during Q1 we were excited to announce the addition of industry executive Matt Merson and continue to focus on both domestic expansion and entrance into the U.S. market. The CPG Division continues to actively engage and evaluate select M&A opportunities to grow our portfolio and our bottom line.
“Looking forward through the rest of the fiscal year, we are expecting fiscal improvements for the associated areas of our operations that faced non-recurring expenses last year. Management continues to focus on incremental operating expense reduction while at the same time maintaining and improving our product and service offering at each of our locations. We acknowledge the challenges facing the business in regard to in-store sales and are working diligently to ensure that we are navigating the macro economic environment that is weighing heavily on businesses across the retail spectrum with strategy and purpose. We are excited for the go forward path of ORAGIN and both of our divisions continue to show opportunity for growth.”
About Oragin Foods Inc. Oragin Foods Inc. (TSXV: OG) (OTCQX: OGGFF) (FRA: 9CW) is a Canadian multi-pronged food company, where new and innovative food and beverage brands are developed, acquired, grown and commercialized through a Consumer Packaged Goods (CPG) Division, and the Company also houses a Retail Division, which owns and operates one of Canada’s leading natural and organic food retailers Organic Garage. For more information, please visit the Oragin website at www.oragin.com.
About Organic Garage Ltd. Organic Garage is one of Canada’s leading independent organic grocers and is committed to offering its customers a wide selection of healthy and natural products at everyday affordable prices. The Company’s stores are in prime retail locations designed to give customers an inclusive, unique and value-focused grocery shopping experience. Founded in 2005 by a fourth-generation grocer, Organic Garage is headquartered in Toronto. The Company is focused on continuing to expand its retail footprint within the Greater Toronto Area. For more information please visit the Organic Garage website at www.organicgarage.com.
About Future of Cheese
The Future of Cheese Inc is a Canadian plant-based cheese innovator and manufacturer led by one of the world's best and recognized cheese makers, along with one of Canada's top chefs, and supported by a team of science minds and sustainability experts. Utilizing unique aging and manufacturing processes, a well-established distribution network and high-profile marketing channels, the Company is set to disrupt the rapidly growing plant-based dairy alternatives market, paving the way for the future of plant-based dairy alternatives! For more information please visit the Future of Cheese website at www.futureofcheese.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Non-IFRS Financial Measures
This press release may include references to certain non-IFRS financial measures. These non-IFRS measures do not have any standardized meanings prescribed by International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation, in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS.
Cautionary Note Regarding Forward-looking Statements
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.
Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of Oragin Foods, that may cause the actual results, level of activity, performance or achievements of Oragin Foods to be materially different from those expressed or implied by such forward looking statements. Oragin Foods is making forward-looking statements with respect to advisors expanded role with the Future of Cheese, and the business plan and impact of the FDA registration on the Company and domestic and international expansion. Although Oragin Foods has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Oragin Foods’ actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, Oragin Foods assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
