Organto Announces Record Third Quarter Financial Results

About this update from Organto Foods, Inc.

[{"type":"text","content":"Organto Announces Record Third Quarter Financial ResultsLargest Third Quarter Revenues and Gross Profit in Company's HistoryVANCOUVER, BC and BREDA, THE NETHERLANDS / November 26, 2021 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF)(FSE:OGF) (\"Organto\" or \"the Company\"), an integrated provider of organic and value-added organic fruits and vegetables today announced financial results for the three- and nine-month periods ended September 30, 2021. All amounts are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS), except where specifically noted.Highlights:Third Quarter 2021 Operating Results:Record third quarter revenues of $4,298,282 versus revenues of $2,737,081 in the prior year, an increase of approximately 57% versus the same quarter in the prior year. Third quarter revenues represent the largest third quarter revenues in the history of Organto and the nineth consecutive quarter of record revenue growth versus the same quarter in the prior year. Growth in the quarter versus the prior year was driven by increased volumes of avocados, ginger, herbs and asparagus sold to a variety of customers throughout Europe. These record results were achieved despite global logistics challenges caused by container and transportation availability which impacted deliveries from a number of growing regions and an unfavorable foreign exchange impact year over year.Record third quarter gross profit of $529,018 or 12.3% of revenues versus $285,951 or 10.4% of revenues in the prior year, an increase of approximately 85%. The gross profit in the third quarter of 2021 represents the largest third quarter gross profit in the Company's history and largest gross profit as a percentage of revenues in the history of the Company. The increase of 190 basis points versus the previous year was driven by a higher mix of value-added private label and branded products, and was achieved despite global logistics challenges which have driven inflationary cost increases.Cash overhead costs for the quarter were 33.6% of revenues, 23.1% of revenues on an adjusted basis, versus 22.7% in the prior year, reflecting investments in infrastructure and resources required to support current and expected growth. Costs in the quarter include expenditures of $453,810 related to retail branded product development and on-li...

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