Business
Organto Announces Record First Quarter 2023 Financial Results
VANCOUVER, BC and BREDA, THE NETHERLANDS / ACCESSWIRE / May 30, 2023 / Organto Foods Inc. (TSX-V:...
About this update from Organto Foods, Inc.
[{"type":"text","content":"Organto Announces Record First Quarter 2023 Financial ResultsVANCOUVER, BC and BREDA, THE NETHERLANDS / ACCESSWIRE / May 30, 2023 / Organto Foods Inc. (TSX-V:OGO, OTCQB:OGOFF, FSE:OGF) (\"Organto\" or \"the Company\"), an integrated provider of organic and non-GMO fruit and vegetable products today announced financial results for the quarter ended March 31, 2023. All amounts are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS), except where specifically noted.Highlights:First Quarter 2023 Operating HighlightsSales of $7,503,529 versus sales of $6,999,864 in the prior year, an increase of approximately 7.2% and approximately 4% on a currency adjusted basis.Sales in the first quarter represent the largest quarterly sales in the history of Organto.Sales in the first quarter represent the fifteenth consecutive quarter of record sales growth, currency adjusted, versus the same quarter in the prior year.Sales at the top end of previously provided first quarter sales guidance of $7.4 million to $7.5 million.Gross profit of $731,244 or 9.7% of sales versus $670,602 or 9.6% of sales in the prior year. When adjusted for the realized gain on derivative assets and liabilities which is from currency hedging directly related to product purchases, adjusted gross profit(1)was $736,627 or approximately 9.8% of sales versus 9.7% in the prior year.Gross profit for the quarter represents the largest quarterly gross profit in the history of Organto.First quarter adjusted gross profit(1) as a percentage of sales increased 380 basis points versus the fourth quarter of 2022 as actions taken by the Company to address significant macro-economic challenges realized in 2022 began to contribute positively.Adjusted gross profit(1) for the first quarter of 9.8% exceeded previously provided quarterly gross profit guidance of 9.4% to 9.6%.Cash overhead costs for the quarter were 27.1% of sales, 23.5% on an adjusted basis, versus 25.7% in the prior year. Costs include investments in infrastructure and resources required to support growth initiatives. These costs include expenditures not related to day-to-day operations of $271,226 including retail branded product development and on-line digital transformation activities, acquisition activities and corporate development costs.Balance Sheet Highlights as March...