Organic Garage Reports Highest Year-End Sales Since Company Inception And 33% Sales Increase In Fourth Quarter
TORONTO – (BUSINESS WIRE) – Organic Garage Ltd. (“Organic garage“or the”Company”) (TSXV: OG, OTCQX: OGGFF, FRA: 9CW1), one of Canada’s leading independent organic grocers, is pleased to announce the Company’s audited financial results for the year ended January 31, 2021 and the quarter ended January 31, 2021 (“Q4”), reporting a significant increase in sales and gross margin for the quarter, which resulted in the most profitable and profitable year in the history of the company. The company has a year-end on January 31.
Q4 financial results (comparison with the quarter ended January 31, 2020):
- Sales increased 32.7% to $ 7.3 million from $ 5.5 million
- Gross profit in dollars increased 21.9% to $ 2.2 million, from $ 1.8 million
- Net loss improved to $ 0.1 million from a loss of $ 3.0 million
- Loss per share of $ (0.00) compared to a loss per share of $ (0.08)
- Raised $ 1.0 million through a private placement offer without a broker
- Working capital $ 1.0 million of a working capital shortfall of $ (1.0) million
Net revenue: The Company recorded a net loss of $ 133,200 for the quarter ended January 31, 2021 compared to a net loss of $ 2,975,318 for the quarter ended January 31, 2020. The increase is due to strong sales of 7,338 $ 592, a gross margin of $ 2,199,100 and $ 2,323,808. As a percentage of sales, total expenses decreased to 31.8% in the quarter ended January 31, 2021, from 46.6% in the quarter ended January 31, 2020, excluding a goodwill impairment of 2,233,968 $ incurred in January 2020.
Matt Lurie, CEO of Organic Garage, said: “With the end of our fiscal year, we are extremely proud to report on our results on what has been a transformative year for our company. Our fourth quarter marked another period with very positive results and our 33% increase in fourth quarter sales highlights the strengthening of the relationship we have with our existing customers and the growth of our customer base.
“Not only have we dramatically increased our annual revenues each quarter of this year, but we’ve also been successful in containing and reducing our operating expenses, even with additional expenses related to COVID-19 that we have incurred to ensure security. of our customers and our staff. .
“We ended the fourth quarter with a remarkable improvement in our working capital and cash position compared to a year ago, which has allowed us to continue to be successful in the next fiscal year and to continue to grow. focus on creating value for our shareholders. ”
Year-end financial results (comparison with the fiscal year ended January 31, 2020)
- Sales increased 25.3% to $ 30.3 million, from $ 24.1 million
- Gross profit in dollars increased 33.2%, from $ 6.7 million to $ 8.9 million
- Net loss improved to $ 0.3 million following a loss of $ (5.1) million
- Loss per share of $ (0.01) compared to a loss per share of $ (0.14)
- EBIDTA $ 2.8 million compared to a loss of $ (1.8) million
- Cash flow from operating activities of $ 1.2 million compared to a loss of $ (0.8) million
- Cash position strengthened to $ 1.6 million from $ 0.2 million
Net revenue: The Company recorded a net loss of $ 263,322 for the year ended January 31, 2021 compared to a net loss of $ 5,083,566 for the year ended January 31, 2020. The increase is due to strong sales of $ 30,276,372, a gross margin of $ 8,928,134 and total expenses of $ 9,194,583. As a percentage of sales, total expenses decreased to 30.3% for the year ended January 31, 2021, from 39.6% for the year ended January 31, 2020, excluding goodwill impairment of $ 2,233,968 incurred in January 2020.
Lurie said: “For the future, we have some very interesting and important catalysts for our business. We announced our acquisition of The Future of Cheese at the end of our fiscal year and have worked diligently since then to prepare the company for the launch of its first three products. I look forward to working with the highly knowledgeable team at Future of Cheese led by Co-Founders Afrim Pristine and Craig Harding to bring their fabulous products to market very soon.
The company announced in the second quarter of fiscal 2021 its intention to switch to a decentralized distribution model, complete the transition in April 2021 and successfully conclude an agreement to sublet the facility located at 50, Akron Road for the remainder of the term of the lease. The company will realize significant operational savings from this change and, in addition to covering the remaining lease payments on the facility of approximately $ 1.0 million, the company has negotiated a premium on top of the remaining payments required in the sublease contract.
“Our record year-end results are a testament to the performance of the entire Organic Garage team,” continued Lurie. “In addition to growing our sales and earnings, we have also continued to reduce our expenses and expect significant savings through our recently announced transition from a centralized distribution model going forward. The future looks very bright and we will continue to capitalize on the growth opportunities that match our value mandate. ”
Events subsequent to the end of the 2021 financial year
Recognized on February 25, 2021 as one of the top 50 companies on the TSX Venture Exchange. The TSX Venture 50 is the exchange’s flagship program, ranking the 10 best performing companies in five sectors.
Announcing the start of trading on the OTCQX market and DTC eligibility to increase liquidity and opportunities for US-based investors.
Generated $ 305,880 in additional cash for the company through the exercise of warrants and stock options.
Completed the transition from a centralized distribution model to a decentralized distribution model in April 2021. The company expects cost savings of approximately $ 1.0 million on an annual basis.
Expanding the list of hand-picked partners to include Cheese Boutique and Tori’s Bakeshop.
Continued strong online sales to support sustained revenue growth.
Webcast and conference call details
The company will host a webcast and conference call to discuss financial results, business outlook and updates on The Future of Cheese on Wednesday, June 2.nd at 12:00 p.m. ET / 6:00 p.m. CEST.
Investors and interested parties can join the webcast by visiting the following link:
Conference call numbers:
Local – Toronto (+1) 416-764-8646
Toll Free – North America (+1) 888-396-8049
ITF – Germany 08007240293
Conference ID 23032246
Please call the conference phone number 10 minutes before the start time. An operator will register your name and phone number.
A replay of the conference call will be available after 2:30 p.m. ET on June 2nd until Monday July 5e, 2021 at 12:00 p.m. EST.
Phone proofreading numbers:
Toronto (+1) 416-764-8691 English
Montreal (+1) 438-798-3291 English
Toll Free – North America (+1) 877-674-6060 English
Reading code: 032246 #
About Organic Garage Ltd.
Organic Garage (TSXV: OG, OTCQX: OGGFF, FRA: 9CW1) is one of the leading independent organic grocers in Canada and is committed to providing its customers with a wide selection of healthy and natural products at affordable prices from all over the world. days. The Company’s stores are located in premier retail locations designed to provide customers with an inclusive, unique and value-driven grocery shopping experience. Founded in 2005 by a fourth generation grocer, Organic Garage is headquartered in Toronto. The company is focused on continuing to expand its retail presence in the Greater Toronto Area. For more information, please visit the Organic Garage website at www.organicgarage.com
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 release.
Caution Regarding Forward-Looking Statements
This press release contains certain forward-looking statements and forward-looking information (collectively referred to in these “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “Continuous”, “in progress”, “estimate”, “prospects”, “expect”, “can”, “will”, “plan”, “should” or similar words, including their negatives, suggesting future results.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, many of which are beyond the control of Organic Garage, which may cause material differences between actual results, level of activity, performances or achievements of Organic Garage. those expressed or implied by these forward-looking statements. Although Organic Garage has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated. , estimated or planned.
Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some of which are described herein. These forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the actual performance and results of Organic Garage to differ materially from any projection of future performance or results expressed or implied by such forward-looking statements. . All forward-looking statements are made as of the date hereof and, except as required by law, Organic Garage assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.