Organto Foods Inc., a provider of organic and value-added organic fruit and vegetable products today announced financial results for the year and quarter ended December 31, 2022, and reconfirmed sales and gross profit estimates for fiscal 2023. All amounts are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS), except where specifically noted.
Fiscal 2022 Operating Highlights
- Sales of $22,124,527 versus sales of $19,518,647 in the prior year, an increase of approximately 22% on a currency adjusted basis, and 13% unadjusted. Fiscal 2022 sales represent the largest annual sales in the history of Organto and were achieved despite the impacts of the Russia Ukraine war, supply chain challenges, currency fluctuations and rapidly rising inflation.
- Gross profit of $1,264,667 or 5.7% of sales versus $1,986,630 or 10.2% of sales in the prior year. When adjusted for the realized gain on derivative assets of $296,304 which is from currency hedging directly related to product purchases, adjusted gross profit(1) was $1,560,971 or approximately 7.1% of sales. Gross profit for the year was impacted by significant supply chain, inflationary and supply chain challenges. The Company continues to take a variety of actions to address these challenges and expects these to have a positive impact moving forward.
- Cash overhead costs for the year were 32.1% of sales, 24.3% on an adjusted basis, versus 29.0% in the prior year. These costs include investments in infrastructure and resources required to support growth initiatives. These costs include expenditures not related to day-to-day operations of $1,722,589 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 highlights
- Fourth quarter sales of $5,466,870 versus sales in the prior year of $5,075,141, an increase of approximately 8% versus the same quarter in the prior year. Sales in the fourth quarter represent the largest fourth-quarter sales in the history of Organto and fourteenth consecutive of currency adjusted revenue growth versus the same quarter in the prior year.
- Fourth quarter gross profit of $219,855 or 4.0% of sales versus $350,810 or 6.9% of sales in the prior year. When adjusted for the realized gain on derivative assets of $107,227 which is from currency hedging directly related to product purchases, adjusted gross profit was $327,082 or approximately 6.0% of sales. Gross profit in the quarter was impacted by significant supply chain and inflation related challenges that were experienced during the quarter.
- Cash overhead costs for the quarter were 35.2% of sales, 26.6% on an adjusted basis, versus 32.5% in the prior year. These costs include investments in infrastructure and resources required to support growth initiatives.
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For more information: 
Organto Foods Inc.
36 Toronto Street, Suite 805
Toronto, ON M5C 2C5 - Canada
Phone: +1 647 629 0018
www.organto.com