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The company ended its quarter with a strengthened cash position of $ 2.1 million, up from the $ 0.8 million it had in its coffers in 3Q 2020
Organic Garage (TSX-V: OG) Ltd has released its 3Q 2021 results which show its gross profit margins have increased despite inflationary pressures and supply chain issues faced by many retailers this year.
The grocery chain reported $ 5.9 million in revenue in the three-month period ending Oct. 31, 2021, up from $ 6.9 million in the same quarter last year, so that the impact of overstocking linked to the pandemic has eased, according to Organic Garage.
The gross profit margin, however, fell from 30.4% to 31.3%.
READ: Organic Garage says Future of Cheese launched truffle-infused vegetable butter for the holiday season
Organic Garage noted that its total third quarter sales did not include any significant contributions from its Future of Cheese division due to the timing of the company’s product launch at the end of the quarter.
The company ended its quarter with a strengthened cash position of $ 2.1 million, compared to $ 0.8 million in its coffers in the third quarter of fiscal 2020.
“We are satisfied with our third quarter results and the financial and strategic positions in which the company ended the calendar year. We continue to see strong results in our gross margin thanks to management’s concise and methodical purchasing strategies, â€CEO Matt Lurie said in a statement.
“Improving our margins while dealing with increased inflationary pressures, supply management issues and labor shortages was a significant achievement during the quarter. Our handpicked list of partners has garnered excellent feedback from our customers and our recent addition of non-alcoholic beer, wine and spirits through our partnership with Rival House Limited will undoubtedly enhance the shopping experience in our shops.
The company reported a net loss of $ 815,000 compared to a loss of $ 118,000 during the same period last year, primarily related to lower sales, non-cash stock-based compensation and the costs incurred during the renovation of one of its locations, which also affected the sales of the store.
CEO Lurie noted that online deliveries have generated strong demand and positive feedback from customers, who are now able to order online from a large geographic footprint.
“Future of Cheese operations continue to scale up and we were extremely pleased to officially launch our butters line at select retailers in Ontario in October, as well as the successful launch of our plant-based brie and infused butter. with truffles in December, â€added Lurie.
“The products have been in high demand and have been very positively received by retail customers and our partner restaurants. It has been very gratifying to see our products on the shelves not only of Organic Garage, but other retailers and partners, and we look forward to building on the success to date.
Contact Angela at angela@proactiveinvestors.com
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