Expect Largest Quarterly Revenues in Company's History
VANCOUVER, BC / ACCESSWIRE / September 30, 2020 / Organto Foods Inc. (TSXV:OGO)(OTC:OGOFF)(FSE:OGF) ("Organto" or "the Company"), an integrated provider of organic and value-added organic fruits and vegetables today provided record third quarter revenue guidance and reaffirmed its previously announced targets of exiting fiscal 2020 with an annualized revenue run rate of CDN $20 million and achieving cash-flow breakeven.
For the third quarter ended September 30, 2020 Organto expects to realize record third quarter revenues of approximately CDN $2.6 to CDN $2.7 million, representing the largest quarterly revenues in the history of the Company, and an increase of over 30% versus the same quarter in the prior year. These results will be the fifth consecutive quarter of record quarterly revenues for the Company. Revenues in September are expected to be the largest monthly revenues in the history of Organto, reflecting an annualized revenue run-rate of approximately CDN $15 million.
Third quarter revenues are being driven by sales of organic avocado, asparagus, ginger, lime and soft fruits. The Company continues to expand product offerings and increase distribution channels to a diverse customer base of traditional retailers, specialty organic retailers, on-line retailers and distributors throughout Europe. Gross profit is also expected to be a quarterly record for the Company and a significant increase versus the prior year.
"Our business continues to grow and we are extremely pleased with our revenues and gross profit for the third quarter, which will be the largest quarterly revenues in the history of Organto." commented Steve Bromley and Rients van der Wal, Co-CEO's. "Demand remains strong for healthy and nutritious organic fruit and vegetable products and we are excited by the progress we are making as we expand our supply of these products. We are looking forward to continued exciting growth in the fourth quarter and beyond as we bring healthy organic fruits and vegetables to the market to meet expected increases in demand."
Investor Webinar - Thursday, October 8, 2020 at 10:00 AM EST
Steve Bromley, Chair and Co-CEO and Rients van der Wal, Co-CEO and CEO of Organto Europe B.V. will host an investor call on Thursday, October 8, 2020 at 10:00 AM EST to discuss preliminary Q-3 results and provide additional information on the business. After opening remarks there will be a question and answer period. To join the meeting, please click on the following URL in advance of the meeting: https://zoom.us/j/94419958329?pwd=Y2V5UVNKM2JOVTk3VDlJOEhQT3B2dz09
Meeting ID: 944 1995 8329
To dial in based on your location use one of the following numbers:
+1 929 436 2866 US (New York)
+1 647 374 4685 Canada
+31 20 794 6520 Netherlands
+44 203 901 7895 United Kingdom
ON BEHALF OF THE BOARD
Chair and Co-Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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Organto's business model is rooted in its commitment to sustainable business practices focused on environmental responsibility and a commitment to the communities where it operates, its people and its shareholders. Organto is an integrated provider of branded, private label and bulk distributed organic and non-GMO fruit and vegetable products using an asset-light business model to serve a growing socially responsible and health conscious consumer around the globe.
FORWARD LOOKING STATEMENTS
This news release may include certain forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"). In particular, and without limitation, this news release contains forward-looking statements respecting Organto's business model, markets and customers; Organtos's belief that demand for fresh organic fruits and vegetables continues to grow and demand in European markets remains strong; Organto's belief that third quarter revenues will be in the range of CDN $2.6 million to CDN $2.8 million, a quarterly revenue record for the Company and gross profit will be also be a record and significantly improved versus the prior year; Organto's belief it will exit fiscal 2020 with a CDN $20 million revenue run rate and cash-flow breakeven; management's beliefs, assumptions and expectations; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about the following: the ability and time frame within which Organto's business model will be implemented; cost increases; dependence on suppliers, partners and contractual counter-parties; changes in the business or prospects of Organto; unforeseen circumstances; risks associated with the organic produce business generally, including inclement weather, unfavorable growing conditions, low crop yields, variations in crop quality, spoilage, import and export laws and similar risks; transportation costs and risks; general business and economic conditions; ongoing relations with distributors, customers, employees, suppliers, consultants, contractors and partners and joint venturers; and risks associated with cannabis operations and receipt of required licenses in Colombia. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing.
SOURCE: Organto Foods Inc.
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