Organic food Inc., an integrated supplier of organic and organic value-added fruits and vegetables, today announced its financial results for the three and nine month periods ended September 30, 2021. All amounts are in Canadian dollars and in accordance with International Financial Reporting Standards. (IFRS), unless otherwise indicated.
Third quarter 2021 operating results:
- Record third quarter revenues of $ 4,298,282 compared to revenues of $ 2,737,081 the previous year, an increase of approximately 57% from the same quarter last year. Third quarter revenues represent the largest third quarter revenues in Organto’s history and the ninth consecutive quarter of record revenue growth compared to the same quarter a year earlier. Growth in the quarter compared to the previous year was driven by higher volumes of avocados, ginger, herbs and asparagus sold to a variety of customers across Europe. These record results were achieved despite global logistical challenges caused by the availability of containers and transportation which impacted deliveries to a number of growing regions and a one-year unfavorable currency impact on the other.
- Record third quarter gross profit of $ 529,018 or 12.3% of revenue versus $ 285,951 or 10.4% of revenue the previous year, an increase of about 85%. The gross margin for the third quarter of 2021 represents the largest third quarter gross margin in the history of the Company and the largest gross margin as a percentage of revenues in the history of the Company. The increase of 190 basis points over the previous year was driven by a higher mix of private label and value-added branded products, and was achieved despite global logistical challenges that resulted in increases in inflationary costs.
- Overheads cashed for the quarter were 33.6% of revenue, 23.1% of revenue on an adjusted basis, up from 22.7% the previous year, reflecting investment in infrastructure and required resources to support current and expected growth. Costs for the quarter include expenses of $ 453,810 related to the development of branded retail products and online digital transformation activities, acquisition and business development costs, all of which are expected to generate positive future earnings.
Third Quarter 2021 Results
Revenue for the quarter ended September 30, 2021 was $ 4,298,282, compared to $ 2,737,081 for the same period of the previous year, an increase of 57% and the ninth consecutive quarter of record growth income compared to the same period of the previous year. Sales of vegetable and fruit products including fresh organic asparagus, avocado, ginger, fresh cut herbs and others were sold to a variety of customers across Europe.
The third quarter is traditionally a seasonally low quarter in European markets due to a combination of the increased local supply of fresh fruit and vegetables and the holiday season in Europe, both of which have an impact on product demand. Retail.
As volumes of key products continued to grow, sales were affected during the quarter by logistics issues caused by the COVID-19 pandemic that impacted the timing and availability of containers needed to deliver the goods. produced in Europe and by a reduced euro / Canadian dollar exchange rate.
Click here to read the full press release.
For more information: www.organto.com