Organto Provides Record Third Quarter Revenue Guidance

Rhea-AI Summary

Organto Foods Inc. has announced record third quarter revenue guidance for the period ending September 30, 2020, projecting revenues of approximately CDN $2.6 to CDN $2.7 million. This constitutes over a 30% increase compared to the same quarter last year, marking the fifth consecutive quarter of record revenues. The company aims for an annualized revenue run rate of CDN $20 million by year-end and expects to reach cash-flow breakeven. Strong sales of organic products like avocado, ginger, and asparagus are driving this growth.

Positive

• Record third quarter revenues projected at CDN $2.6 to CDN $2.7 million, up over 30% year-over-year.
• Fifth consecutive quarter of record revenue growth.
• Projected annualized revenue run rate of CDN $20 million by the end of fiscal 2020.
• Strong demand for organic products driving sales.

Negative

• None.

Expect Largest Quarterly Revenues in Company's History

VANCOUVER, BC / ACCESSWIRE / September 30, 2020 / Organto Foods Inc. (TSXV:OGO)(OTC:OGOFF)(FSE:OGF) ("Organto" or "the Company"), an integrated provider of organic and value-added organic fruits and vegetables today provided record third quarter revenue guidance and reaffirmed its previously announced targets of exiting fiscal 2020 with an annualized revenue run rate of CDN $20 million and achieving cash-flow breakeven.

For the third quarter ended September 30, 2020 Organto expects to realize record third quarter revenues of approximately CDN $2.6 to CDN $2.7 million^[1], representing the largest quarterly revenues in the history of the Company, and an increase of over 30% versus the same quarter in the prior year. These results will be the fifth consecutive quarter of record quarterly revenues for the Company. Revenues in September are expected to be the largest monthly revenues in the history of Organto, reflecting an annualized revenue run-rate of approximately CDN $15 million.

Third quarter revenues are being driven by sales of organic avocado, asparagus, ginger, lime and soft fruits. The Company continues to expand product offerings and increase distribution channels to a diverse customer base of traditional retailers, specialty organic retailers, on-line retailers and distributors throughout Europe. Gross profit is also expected to be a quarterly record for the Company and a significant increase versus the prior year.

"Our business continues to grow and we are extremely pleased with our revenues and gross profit for the third quarter, which will be the largest quarterly revenues in the history of Organto." commented Steve Bromley and Rients van der Wal, Co-CEO's. "Demand remains strong for healthy and nutritious organic fruit and vegetable products and we are excited by the progress we are making as we expand our supply of these products. We are looking forward to continued exciting growth in the fourth quarter and beyond as we bring healthy organic fruits and vegetables to the market to meet expected increases in demand."

Investor Webinar - Thursday, October 8, 2020 at 10:00 AM EST

Steve Bromley, Chair and Co-CEO and Rients van der Wal, Co-CEO and CEO of Organto Europe B.V. will host an investor call on Thursday, October 8, 2020 at 10:00 AM EST to discuss preliminary Q-3 results and provide additional information on the business. After opening remarks there will be a question and answer period. To join the meeting, please click on the following URL in advance of the meeting: https://zoom.us/j/94419958329?pwd=Y2V5UVNKM2JOVTk3VDlJOEhQT3B2dz09

Meeting ID: 944 1995 8329
Passcode: 131377

To dial in based on your location use one of the following numbers:

+1 929 436 2866 US (New York)
+1 647 374 4685 Canada
+31 20 794 6520 Netherlands
+44 203 901 7895 United Kingdom

ON BEHALF OF THE BOARD

Steve Bromley
Chair and Co-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 Relations
604-634-0970
1-888-818-1364
info@organto.com

ABOUT ORGANTO

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. Organto is an integrated provider of branded, private label and bulk distributed organic and non-GMO fruit and vegetable products using an asset-light business model to serve a growing socially responsible and health conscious consumer around the globe.

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, markets and customers; Organtos's belief that demand for fresh organic fruits and vegetables continues to grow and demand in European markets remains strong; Organto's belief that third quarter revenues will be in the range of CDN $2.6 million to CDN $2.8 million, a quarterly revenue record for the Company and gross profit will be also be a record and significantly improved versus the prior year; Organto's belief it will exit fiscal 2020 with a CDN $20 million revenue run rate and cash-flow breakeven; 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; 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; ongoing relations with distributors, customers, employees, suppliers, consultants, contractors and partners and joint venturers; and risks associated with cannabis operations and receipt of required licenses in Colombia. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing.

SOURCE: Organto Foods Inc.

View source version on accesswire.com:
https://www.accesswire.com/608578/Organto-Provides-Record-Third-Quarter-Revenue-Guidance

FAQ

What are the expected revenues for Organto Foods in Q3 2020?

Organto Foods expects revenues of approximately CDN $2.6 to CDN $2.7 million for Q3 2020.

How much has Organto's revenue increased compared to last year?

The revenue is projected to increase by over 30% compared to the same quarter last year.

What is Organto's annualized revenue run rate target for 2020?

Organto aims for an annualized revenue run rate of CDN $20 million by the end of fiscal 2020.

What products are driving revenue growth for Organto Foods?

Sales of organic avocado, asparagus, ginger, lime, and soft fruits are driving revenue growth.

When is the investor webinar for Organto Foods?

The investor webinar will be held on Thursday, October 8, 2020, at 10:00 AM EST.