Organto Releases Fiscal 2024 Third Quarter Financial Results
Organto Foods reported Q3 2024 financial results showing significant improvements. Sales increased 47% to $5.2 million, with gross profit rising 63% to $0.6 million (11.8% of sales). The company's restructuring efforts, including streamlined product portfolio and marketing strategy, yielded positive results. Q3 loss narrowed to $0.8 million from $1.6 million year-over-year. Year-to-date sales grew 31% to $14.3 million, with gross profit at $1.2 million. The company recorded a $2.6 million gain from selling three Dutch subsidiaries and continues to focus on restructuring convertible debenture obligations for improved operational flexibility.
Organto Foods ha pubblicato i risultati finanziari del terzo trimestre 2024, evidenziando miglioramenti significativi. Le vendite sono aumentate del 47% a $5,2 milioni, con il profitto lordo che è cresciuto del 63% a $0,6 milioni (11,8% delle vendite). Gli sforzi di ristrutturazione dell'azienda, inclusi un portafoglio prodotti razionalizzato e una strategia di marketing più efficiente, hanno prodotto risultati positivi. La perdita del terzo trimestre si è ridotta a $0,8 milioni rispetto a $1,6 milioni dell'anno precedente. Le vendite da inizio anno sono aumentate del 31% a $14,3 milioni, con un profitto lordo di $1,2 milioni. L'azienda ha registrato un guadagno di $2,6 milioni dalla vendita di tre filiali olandesi e continua a concentrarsi sulla ristrutturazione delle obbligazioni convertibili per migliorare la flessibilità operativa.
Organto Foods reportó los resultados financieros del tercer trimestre de 2024, mostrando mejoras significativas. Las ventas aumentaron un 47% a $5.2 millones, mientras que la ganancia bruta se elevó un 63% a $0.6 millones (11.8% de las ventas). Los esfuerzos de reestructuración de la compañía, que incluyen un portafolio de productos optimizado y una estrategia de marketing más eficiente, dieron resultados positivos. La pérdida del tercer trimestre se redujo a $0.8 millones desde $1.6 millones del año anterior. Las ventas acumuladas hasta la fecha crecieron un 31% a $14.3 millones, con una ganancia bruta de $1.2 millones. La compañía registró una ganancia de $2.6 millones por la venta de tres subsidiarias holandesas y sigue enfocándose en reestructurar las obligaciones de bonos convertibles para mejorar la flexibilidad operativa.
Organto Foods는 2024년 3분기 재무 결과를 발표하며 의미 있는 개선을 보여주었습니다. 매출은 47% 증가하여 $5.2백만에 이르렀으며, 총 이익은 63% 증가하여 $0.6백만 (매출의 11.8%)에 달했습니다. 회사의 재구성 노력, 즉 간소화된 제품 포트폴리오와 마케팅 전략이 긍정적인 결과를 가져왔습니다. 3분기 손실은 지난해 같은 기간의 $1.6백만에서 $0.8백만으로 줄어들었습니다. 年度 누적 매출은 31% 증가하여 $14.3백만에 이르고, 총 이익은 $1.2백만입니다. 회사는 세 개의 네덜란드 자회사를 매각하여 $2.6백만의 이익을 기록하였으며, 운영 유연성을 향상시키기 위해 전환사채 의무 재구성에 집중하고 있습니다.
Organto Foods a publié les résultats financiers du troisième trimestre 2024, montrant des améliorations significatives. Les ventes ont augmenté de 47% pour atteindre $5,2 millions, avec un bénéfice brut en hausse de 63% à $0,6 million (11,8% des ventes). Les efforts de restructuration de l'entreprise, y compris un portefeuille de produits rationalisé et une stratégie marketing améliorée, ont produit des résultats positifs. La perte du troisième trimestre s'est réduite à $0,8 million par rapport à $1,6 millions de l'année précédente. Les ventes depuis le début de l'année ont augmenté de 31% pour atteindre $14,3 millions, avec un bénéfice brut de $1,2 million. L'entreprise a enregistré un gain de $2,6 millions provenant de la vente de trois filiales néerlandaises et continue de se concentrer sur la restructuration de ses obligations de débentures convertibles pour améliorer la flexibilité opérationnelle.
Organto Foods hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, die erhebliche Verbesserungen zeigen. Der Umsatz stieg um 47% auf $5,2 Millionen, während der Bruttogewinn um 63% auf $0,6 Millionen (11,8% des Umsatzes) anstieg. Die Umstrukturierungsmaßnahmen des Unternehmens, einschließlich eines gestrafften Produktportfolios und einer optimierten Marketingstrategie, erzielten positive Ergebnisse. Der Verlust im dritten Quartal verringerte sich auf $0,8 Millionen im Vergleich zu $1,6 Millionen im Vorjahr. Die bisherigen Verkaufszahlen stiegen um 31% auf $14,3 Millionen, mit einem Bruttogewinn von $1,2 Millionen. Das Unternehmen verzeichnete einen Gewinn von $2,6 Millionen aus dem Verkauf dreier niederländischer Tochtergesellschaften und konzentriert sich weiterhin darauf, die Verpflichtungen aus Wandelanleihen umzugestalten, um die operationale Flexibilität zu verbessern.
- Sales growth of 47% YoY in Q3 2024
- Gross profit increased 63% YoY in Q3 2024
- Q3 loss reduced by 50% from $1.6M to $0.8M
- $2.6M gain from sale of Dutch subsidiaries
- YTD sales up 31% to $14.3M
- YTD loss significantly improved from $5.9M to $0.3M
- Cash overhead costs increased to 19% of sales vs 13% in prior year
- YTD gross profit margin declined to 8.2% from 9.4%
- Ongoing restructuring and cease trade order activities adding costs
- Still operating at a loss despite improvements
VANCOUVER, BC and BREDA, THE NETHERLANDS / ACCESSWIRE / November 27, 2024 / Organto Foods Inc. (TSXV:OGO)(OTCQB: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 its financial results for the three and nine-month periods ended September 30, 2024. All amounts are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS), except where specifically noted.
"We are pleased with our financial results for the third quarter of 2024 which reflect the impact of our operational restructuring which has streamlined our product portfolio, shifted our marketing strategy and re-engineered our ongoing operating costs. We believe the results for the third quarter reflect the benefits of our repositioning efforts, including sales growth of
Bromley commented further, "Immediately following the filing of our Financial Statements and Management Discussion and Analysis for the second quarter of 2024, we submitted our application to have the current Cease Trade Order lifted. This process is ongoing, and we are hopeful it will be concluded in the near term. We believe we are now fully current with all financial related filings, and when combined with the performance of our restructured business, are looking forward to an exciting future. We truly appreciate the continued support we have received from our shareholders, debenture holders and key operating partners as we have worked through the restructuring of our business. 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."
Third Quarter 2024 Financial Results Overview
As a result of the sales of the three subsidiaries in June 2024, all sales and expenses, as well as any gains and losses relating to the operations of the sold subsidiaries have been eliminated from 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.
Sales of
$5.2 million versus sales of$3.5 million in the prior year, an increase of47% , driven by strong growth in sales of organic and fairtrade bananas to European customers.Gross profit of
$0.6 million or11.8% of sales versus$0.4 million or10.6% of sales in the prior year. Third quarter gross profit includes a one-time favorable adjustment of approximately$104,000 t o properly allocate sales commissions to selling, general and administration expenses for the first and second quarters of 2024. Excluding this adjustment, gross profit for the third quarter of 2024 was$0.5 million or9.8% of sales.Cash overhead costs increased to
19% of sales versus13% in the prior year. Third quarter 2024 costs include approximately$113,000 related to ongoing restructuring, reorganization and cease trade order activities combined with additional costs to complete the 2023 financial audit. Excluding this, the increase in ongoing costs was driven by the retention of costs and resources which were previously included in sold subsidiaries, offset by the savings realized from our efforts to streamline and simplify the business.The current quarter loss for the period was
$0.8 million versus a loss of$1.6 million in the prior year, reflecting improvement as the business has been and continues to be restructured and positioned for future growth and profitability.
Year to Date 2024 Financial Results Overview
Sales of
$14.3 million versus sales of$10.9 million in the prior year, an increase of31% , driven by strong growth in sales of organic and fairtrade bananas to European customers.Gross profit of
$1.2 million or8.2% of sales versus$1.0 million or9.4% of sales in the prior year, a dollar increase of15% . Year-over-year gross profit as a percentage of sales was impacted by currency fluctuations and supply chain costs.Cash overhead costs remained flat at
14% of sales. Our third quarter 2024 included approximately$113,000 related to ongoing restructuring, reorganization and cease trade order activities combined with additional costs to complete the 2023 financial audit. These costs plus incremental costs driven by the retention of resources which were previously included in sold subsidiaries were offset by the savings realized from our efforts to streamline and simplify the business.Gain of
$2.6 million on the sales of three of our wholly owned Dutch operating subsidiaries (see July 12, 2024 and June 5, 2024 news releases) as well as a gain of$0.4 million on the dissolution of an inactive subsidiary.Loss for the year of
$0.3 million versus a loss of$5.9 million in the prior year, reflecting a substantial improvement as the business has been and continues to be restructured and positioned for future growth and profitability.
Interested parties may access the Company's filings including Financial Statements and accompanying Management's Discussion and Analysis for the period ended September 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
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 and believe that its application to have the current Cease Trade Order revoked as per the terms of securities legislation of British Columbia will be concluded in the near term; 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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