Organto Foods Inc., an integrated provider of organic and value-added organic fruit and vegetable products today announced financial results for the year and quarter ended December 31, 2021 and sales estimates for the quarter ended March 31, 2022. All amounts are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS).
Fiscal 2021 Operating Results
- Record sales of $19,518,647 versus sales of $11,448,036 in the prior year, an increase of approximately 70.5%. Fiscal 2021 sales represent the largest annual sales in the history of Organto. Allowing for the year over year impact of the decline of the Euro versus the Canadian dollar, sales increased 77.1%.
- Record gross profit of $1,986,630 or 10.2% of sales versus $1,072,942 or 9.4% of sales in the prior year, an increase of approximately 85.2% on a dollar basis, and the largest annual gross profit in the history of Organto in terms of both total dollars and as a percentage of sales.
- Cash overhead costs for the year were 29.0% of sales, or 20.2% after adjusting for non-recurring items, versus 22.8% in the prior year. The increase in costs reflects investments in infrastructure and resources required to support growth initiatives. These costs include expenditures not related to day to day operations of $1,717,702 including retail branded product development and on-line digital transformation activities, acquisition activities and corporate development costs, all of which are expected to generate positive future benefits.
Fourth Quarter 2021 Operating Results
- Record fourth quarter sales of $5,075,141 versus sales of $4,937,180 in the prior year, an increase of approximately 2.8%. Sales in the fourth quarter represent the largest fourth quarter sales in the history of Organto. Allowing for the year over year impact of the decline of the Euro versus the Canadian dollar, sales increased 10.9%.
- Fourth quarter gross profit of $350,810 or 6.9% of sales versus $394,010 or 8.0% of sales in the prior year. Gross margins in the quarter were impacted by significant supply chain, inflationary and pandemic related challenges that were experienced. The Company continues to implement actions to address these challenges and expects these to have a positive impact moving forward.
- Cash overhead costs for the quarter were 32.5% of sales, or 21.9% after adjusting for non-recurring items, versus 17.9% in the prior year. The increase in costs reflects investments in infrastructure and resources required to support growth initiatives. These costs include expenditures not related to day to day operations of $538,228 including retail branded product development and on-line digital transformation activities, acquisition activities and corporate development costs, all of which are expected to generate positive future benefits.
For more information: organto.com