Organto Releases Fiscal 2024 Second Quarter Financial Results
Organto Foods released its Q2 2024 financial results, showing significant improvements. Sales reached $4.4 million in Q2, up 24% from prior year, while year-to-date sales hit $9.0 million, a 23% increase. The company reported Q2 gross profit of $0.3 million (6.4% of sales) and a net income of $2.1 million, including a $2.7 million gain from selling three Dutch subsidiaries. Cash overhead costs decreased to 13% of sales in Q2, reflecting business streamlining efforts. The company is working to lift its current Cease Trade Order and restructure convertible debenture obligations for reduced debt levels and greater operational flexibility.
Organto Foods ha pubblicato i risultati finanziari per il secondo trimestre del 2024, mostrando miglioramenti significativi. Le vendite hanno raggiunto 4,4 milioni di dollari nel secondo trimestre, con un aumento del 24% rispetto all'anno precedente, mentre le vendite dall'inizio dell'anno hanno toccato 9,0 milioni di dollari, con un incremento del 23%. L'azienda ha riportato un utile lordo nel secondo trimestre di 0,3 milioni di dollari (6,4% delle vendite) e un reddito netto di 2,1 milioni di dollari, includendo un guadagno di 2,7 milioni di dollari dalla vendita di tre filiali olandesi. I costi generali in contante sono diminuiti al 13% delle vendite nel secondo trimestre, riflettendo gli sforzi di razionalizzazione aziendale. L'azienda sta lavorando per sollevare l'attuale Ordine di Cessazione del Commercio e ristrutturare le obbligazioni delle obbligazioni convertibili per ridurre i livelli di debito e garantire una maggiore flessibilità operativa.
Organto Foods ha publicado sus resultados financieros del segundo trimestre de 2024, mostrando mejoras significativas. Las ventas alcanzaron 4,4 millones de dólares en el segundo trimestre, un aumento del 24% en comparación con el año anterior, mientras que las ventas acumuladas hasta la fecha alcanzaron 9,0 millones de dólares, un incremento del 23%. La empresa reportó un beneficio bruto de 0,3 millones de dólares en el segundo trimestre (6,4% de las ventas) y un ingreso neto de 2,1 millones de dólares, incluyendo una ganancia de 2,7 millones de dólares por la venta de tres filiales neerlandesas. Los costos generales en efectivo disminuyeron al 13% de las ventas en el segundo trimestre, reflejando los esfuerzos de optimización del negocio. La compañía está trabajando para levantar su actual Orden de Cese de Comercio y reestructurar las obligaciones de los bonos convertibles para reducir los niveles de deuda y lograr una mayor flexibilidad operativa.
Organto Foods는 2024년 2분기 재무 결과를 발표하며 상당한 개선을 보여주었습니다. 2분기 매출은 440만 달러에 달하며, 작년 대비 24% 증가했으며, 연간 매출은 900만 달러로 23% 증가했습니다. 회사는 2분기 총 이익이 30만 달러(매출의 6.4%)와 순이익이 210만 달러라고 보고했으며, 이는 네덜란드 자회사를 세 곳 매각하여 270만 달러의 이익을 포함한 수치입니다. 현금 고정비용은 2분기 매출의 13%로 감소했으며, 이는 비즈니스 효율화 노력의 반영입니다. 이 회사는 현재의 거래 중지 명령을 해제하고, 부채 수준을 줄이고 운영의 유연성을 높이기 위해 전환사채 의무를 재구성하기 위해 노력하고 있습니다.
Organto Foods a publié ses résultats financiers pour le deuxième trimestre de 2024, montrant des améliorations significatives. Les ventes ont atteint 4,4 millions de dollars au deuxième trimestre, soit une augmentation de 24 % par rapport à l'année précédente, tandis que les ventes cumulées depuis le début de l'année s'élèvent à 9,0 millions de dollars, enregistrant une hausse de 23 %. L'entreprise a rapporté un bénéfice brut de 0,3 million de dollars au deuxième trimestre (6,4 % des ventes) et un revenu net de 2,1 millions de dollars, incluant un gain de 2,7 millions de dollars provenant de la vente de trois filiales néerlandaises. Les frais généraux en espèces ont diminué pour atteindre 13 % des ventes au deuxième trimestre, ce qui reflète les efforts de rationalisation des activités. L'entreprise travaille à lever son Ordre de Cessation de Commerce actuel et à restructurer ses obligations de débentures convertibles afin de réduire le niveau de la dette et d'accroître la flexibilité opérationnelle.
Organto Foods hat seine Finanzzahlen für das zweite Quartal 2024 veröffentlicht, die signifikante Verbesserungen zeigen. Die Verkaufszahlen erreichten im zweiten Quartal 4,4 Millionen Dollar, was einem Anstieg von 24 % im Vergleich zum Vorjahr entspricht, während die Verkaufszahlen seit Jahresbeginn 9,0 Millionen Dollar erreicht haben, was einem Anstieg von 23 % entspricht. Das Unternehmen berichtete für das zweite Quartal von einem Bruttogewinn von 0,3 Millionen Dollar (6,4 % des Umsatzes) und einem Nettoeinkommen von 2,1 Millionen Dollar, einschließlich eines Gewinns von 2,7 Millionen Dollar aus dem Verkauf von drei niederländischen Tochtergesellschaften. Die allgemeinen Kosten in bar sanken im zweiten Quartal auf 13 % des Umsatzes, was die Bestrebungen zur Straffung des Geschäfts widerspiegelt. Das Unternehmen arbeitet daran, seine derzeitige Handelsstoppverfügung aufzuheben und die Verpflichtungen aus konvertierbaren Anleihen neu zu strukturieren, um die Schuldenlast zu reduzieren und die betriebliche Flexibilität zu erhöhen.
- Q2 2024 sales increased 24% YoY to $4.4 million
- Year-to-date sales grew 23% to $9.0 million
- Net income of $2.1 million in Q2 2024 vs net loss of $2.3 million in prior year
- Cash overhead costs reduced to 13% of sales from 15% in prior year
- Gain of $2.7 million from sale of Dutch subsidiaries
- Gross profit margin declined to 6.4% in Q2 from 8.0% prior year
- Adjusted gross profit margin decreased to 5.8% from 6.6% prior year
- Loss from discontinued operations of $0.4 million in Q2
- Operating under Cease Trade Order
- Ongoing need for convertible debenture restructuring
VANCOUVER, BC and BREDA, THE NETHERLANDS / ACCESSWIRE / November 12, 2024 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF)(FSE:OGF) ("Organto" or "the Company"), a provider of branded, private label and bulk distributed healthy and organic fruit and vegetable products today announced it has released its financial results for the three-and six-month periods ended June 30, 2024. All amounts are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS), except where specifically noted.
"Our financial results for the second quarter of 2024 reflect a significant improvement over previous quarters as we continue to restructure both our operations and our balance sheet with the goal of repositioning our business for profitable growth, and more importantly, achieving profitability and long-term stability. We believe we are making good progress in our repositioning, including streamlining our product portfolio to categories where we believe we can win, refocusing our marketing strategies and reducing our operating costs via internal reorganization and reprioritization. In addition, we continue to focus on the restructuring of our convertible debenture obligations, which is expected to result in reduced debt levels and greater operating flexibility. We believe the impact of these initiatives will continue to be apparent as we report our results in the coming periods." commented Steve Bromley, Chair and Chief Executive Officer.
Bromley commented further, "With the filing of our Financial Statements and Management Discussion and Analysis for the second quarter of 2024 complete, we believe we have met the key requirements to apply to have the current Cease Trade Order lifted and will immediately begin this process. We are also confident that we will meet the deadline for filing of financial statements for the third quarter of 2024 in accordance with established regulatory timelines. The delays we experienced in filing our financial statements due to personnel and systems changes at the end of 2023 and beginning of 2024 were unfortunate and we appreciate the work done by all involved in completing these financial statements and bringing our filings up to date. We also appreciate the continued support we have received from our shareholders, debenture holders and key operating partners as we work through this restructuring period. We remain committed to building a world class foods company focused on serving growing global healthy foods markets with the goal of building long-term shareholder value."
Financial Results Overview
Gain of
$2.7 million on the sales of three of our wholly owned Dutch operating subsidiaries (see July 12, 2024 and June 5, 2024 news releases) and gain of$0.4 million on the dissolution of a subsidiary.As a result of the sales of the three subsidiaries, all revenue and expenses, as well as any gains and losses relating to the operations of the sold subsidiaries have been eliminated from our continuing operations and instead are shown as a single line item, loss from discontinued operations, for both the current period and any comparative historical periods.
Year-to-date sales of
$9.0 million versus sales of$7.3 million in the prior year, an increase of23% .Current quarter sales of
$4.4 million versus sales of$3.5 million in the prior year, an increase of24% .Year-to-date gross profit of
$0.6 million or6.2% of sales versus$0.6 million or8.8% of sales in the prior year. When adjusted for realized gains derived from currency hedging directly related to product purchases, adjusted gross profit(1) was approximately5.2% of sales versus7.9% in the prior year. Gross profit was negatively impacted by unfavorable currency fluctuations and market conditions.Current quarter gross profit of
$0.3 million or6.4% of sales versus$0.3 million or8.0% of sales in the prior year. When adjusted for realized gains derived from currency hedging directly related to product purchases, adjusted gross profit(1) was approximately5.8% of sales versus6.6% in the prior year.Cash overhead costs declined to
13% of sales for the current quarter and12% of sales year-to-date versus15% and13% in the prior year. The decrease in cash operating costs reflects the impact of efforts to streamline and simplify the business, refocused marketing strategies, and the realignment and refocusing of internal resources and spending.Current quarter income from continuing operations was
$2.4 million . Excluding the gains from the dissolution and sales of subsidiaries, the current quarter loss from continuing operations was$0.6 million versus$1.0 million in the prior year.Year-to-date income from continuing operations was
$2.0 million . Excluding the gains from the dissolution and sales of subsidiaries, the year-to-date loss from continuing operations was$1.1 million versus$1.6 million in the prior year.Current quarter loss from discontinued operations was
$0.4 million versus$1.3 million in the prior year.Year-to-date loss from discontinued operations was
$1.4 million versus$2.7 million in the prior year.Current quarter net income was
$2.1 million versus a net loss of$2.3 million in the prior year.Year-to-date net income was
$0.6 million versus a net loss of$4.3 million in the prior year.
Interested parties may access the Company's filings including Financial Statements and accompanying Management's Discussion and Analysis for the period ended June 30, 2024 at www.SEDARplus.ca or at the Company's website at www.organto.com under the Investors tab.
ON BEHALF OF THE BOARD,
Steve Bromley
Chair 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 Relations
info@organto.com
John Rathwell, Senior Vice President, Corporate Development and Investor Relations
647 629 0018
(1) The information presented herein refers to the non-IFRS financial measure of adjusted gross profit. 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. This measure is not a recognized measure under IFRS and does 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 good progress in the restructuring of its business and is focused on a clear path to profitability; Organto's belief that its efforts to restructure its convertible debt portfolio is expected to result in reduced debt levels and greater operating flexibility; Organto's belief that as it is now current with its filing obligations, that it will meet the key requirements to have the Cease Trade Order rescinded under the securities legislation of British Columbia; Organto's belief that it will file its financial statements for the third quarter of 2024 in accordance with established regulatory guidelines; Organto's belief that it remains focused on building a world class company focused on growing healthy foods markets with the goal of building long-term 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.
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