Organto Foods Announces Third Quarter 2025 Financial Results

Rhea-AI Summary

Organto Foods (OTCQX:OGOFF) reported third quarter results for the period ended September 30, 2025, showing continued record growth and a strengthened balance sheet.

Key Q3 highlights: sales $15.1M (+189% YoY), gross profit $1.2M (+101% YoY), cash operating expenses 8.7% of sales, and EBITDA of $(0.7)M. Nine-month results: sales $45.9M (+222% YoY), gross profit $3.6M, EBITDA $(0.9)M. Balance sheet improvements include cash of $8.8M, working capital $8.6M, and short-term loans/convertibles reduced to $2.5M. Reported net loss includes non-recurring debt settlement losses and derivative losses impacting results.

Positive

• Q3 sales of $15.1M (+189% YoY)
• Nine-month sales of $45.9M (+222% YoY)
• Cash balance of $8.8M at September 30, 2025
• Working capital improved to $8.6M versus -$14.6M

Negative

• Nine-month net loss of $9.6M
• Net losses on derivatives totaled $2.3M in nine months
• Losses on settlement of debt of $5.5M in nine months
• Adjusted gross margin fell to 5.5% (nine months, hedging impact)

Strengthened Balance Sheet and Continued Record Growth

TORONTO, ON AND BREDA, THE NETHERLANDS / ACCESS Newswire / November 18, 2025 / Organto Foods Inc. (TSX-V:OGO)(OTCQX:OGOFF)(FSE:OGF0) ("Organto" or "the Company"), is pleased to announce its financial results for the three and nine-month periods ended September 30, 2025. All amounts are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS), except where specifically noted.

Hi-Lites

Quarter Ended September 30, 2025

• Third quarter sales of $15.1 million, an increase of 189% versus the prior year. Largest third quarter sales in the history of the Company.

• Gross profit of $1.2 million, an increase of 101% versus the prior year. Largest third quarter gross profit dollars in the history of the Company.

• Cash operating expenses of 8.7% of sales versus 18.2% in the prior year. Cash operating costs as percentage of sales improved as business scales and overheads are leveraged.

• EBITDA⁽¹⁾ (Earnings before interest, taxes, depreciation and amortization) of $(0.7) million, reflecting improved operating results offset by the impact of losses on derivatives used to manage currency risk.

Nine-Month Period Ended June 30, 2025

• Sales of $45.9 million, an increase of 222% versus the prior year, and already 122% greater than fiscal 2024 total sales of $20.7 million.

• Gross profit of $3.6 million, an increase of 208% versus the first nine months of the prior year, and already 100% greater than fiscal 2024 total gross profit of $1.8 million.

• Cash operating expenses of 7.3% of sales versus 13.4% in the prior year. Cash operating costs as percentage of sales demonstrate continued improvement as the business scales and overheads are leveraged.

• EBITDA⁽¹⁾ (Earnings before interest, taxes, depreciation and amortization) of $(0.9) million, reflecting improved operating results offset by the impact of losses on derivatives used to manage currency risk.

• Balance sheet significantly strengthened as a result of improved operations, debt restructuring and financing activities:

• Cash of $8.8 million (excluding restricted cash) versus $0.3 million at December 31, 2024.

• Working capital of $8.6 million versus negative working capital of $14.6 million at December 31, 2024.

• Short-term loans and convertible debentures reduced to $2.5 million versus $12.5 million at December 31, 2024.

"We believe our results for the third quarter are a solid reflection of the strong momentum and financial strength we are building in our business. These results are the outcome of the extensive restructuring and business realignment we've executed over the past 21 months, which we believe sets a solid foundation for sustained growth, stability, and a clear path to profitability. The combination of our growing business, which continues to deliver, and our strengthened financial position, leads to our optimism as we continue to build a world-class company serving growing healthy foods markets and in doing so creating lasting value for our partners, customers, team members and shareholders", commented Steve Bromley, Co-Chair and Chief Executive Officer.

Fiscal 2025 Third Quarter Results Overview

• Sales of $15.1 million versus $5.2 million in the prior year, an increase of approximately 189%. Sales grew as new customers were added, while a number of existing customers increased their purchases. Q-3 sales represent the largest third quarter sales in the history of the Company and 73% of total fiscal 2024 sales of $20.7 million.

• Gross profit of $1.2 million or 8.2% of sales, versus $0.6 million or 11.8% of sales in the prior year, an increase of approximately 101% in gross profit dollars. Adjusted gross profit⁽¹⁾ was $0.7 million or 4.5% of sales when accounting for the impact of realized currency hedging activities, versus $0.6 million or 11.8% of sales in the prior year when there was no impact from hedging activities.

• Cash operating expenses of $1.3 million or 8.7% of sales versus $0.9 million or 18.2% of sales in the prior year. Operating expenses have stabilized following the sale of three subsidiaries in Q-2 2024, and reflect incremental costs to support the growth of our business and costs related to our rebranding initiatives.

• Loss from operations of $0.4 million versus a loss of $0.5 million in the prior year.

• Net loss for the period of $2.0 million after accounting for interest and accretion costs of $0.1 million and net losses on derivatives totaling $0.4 million. Net loss also includes a number of non-recurring costs including debt restructuring costs of $0.1 million and losses on the settlement of debt of $1.7 million. Adjusted for non-recurring costs, adjusted net income was $0.2 million versus a net loss in the prior year of $0.8 million.

Fiscal 2025 Nine-Month Results Overview

• Sales of $45.9 million versus $14.3 million in the prior year, an increase of approximately 222%. Sales have grown as new customers were added, and a number of existing customers increased their purchases. Nine-month sales represent an increase of 122% over total fiscal 2024 sales of $20.7 million.

• Gross profit of $3.6 million or 7.7% of sales, versus $1.2 million or 8.2% of sales in the prior year, an increase of approximately 208% in gross profit dollars. Adjusted gross profit⁽¹⁾ was $2.5 million or 5.5% of sales when accounting for the impact of realized currency hedging activities, versus $1.1 million or 7.6% of sales in the prior year.

• Cash operating expenses of $3.4 million or 7.3% of sales versus $1.9 million or 13.4% of sales in the prior year. Operating expenses have stabilized following the sale of three subsidiaries in Q-2 2024, though have increased due to the assumption of operating expenses that were previously borne by the subsidiaries sold, as well as incremental costs to support the growth of our business.

• Loss from operations of $0.6 million versus a loss of $1.1 million in the prior year.

• Net loss for the period of $9.6 million after accounting for interest and accretion costs of $0.6 million and net losses on derivatives of $2.3 million. Net loss also includes a number of non-recurring costs including debt restructuring costs of $0.8 million and losses on the settlement of debt of $5.5 million. Net loss in the prior year was $0.3 million, driven by a gain from the dissolution of one of our subsidiaries of $0.4 million and income related to the sale of three operating subsidiaries of $1.2 million, offset by losses related to continuing operations.

The Company's Financial Statements and Management Discussion and Analysis for the three and nine-month periods ended September 30, 2025., as well as its Audited Financial Statements and accompanying Management's Discussion and Analysis for the year ended December 31, 2024 are available at www.SEDARplus.ca or at the Company's website at www.organto.com under the Investors tab.

Exercise of Warrants

In June 2025 the Company closed a private placement and issued 4,000,000 units at a price of $0.25 per unit for proceeds of $1,000,000. Each unit consisted of one common share and one half of a share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $0.35 until December 2026. The holder of 2,000,000 half a share purchase warrants has exercised their right to purchase 1,000,000 million common shares at a price of $0.35 per share. The Company received proceeds of $350,000, and as a result, issued 1,000,000 common shares. The common shares were subject to a hold period that expired on October 27, 2025.

ON BEHALF OF THE BOARD,

Steve Bromley
Co-Chair and 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.

For more information contact:
info@organto.com
John Rathwell, Senior Vice President, Corporate Development
647 629 0018

(1) The information presented herein refers to the non-IFRS financial measures of adjusted gross profit and EBITDA. We hedge currencies for certain product categories where either the supply or sales commitments are fixed in foreign currencies. The gains and losses from these hedging activities are combined with gross profit to determine adjusted gross profit. We also refer to EBITDA, which is Earnings before interest, taxes, depreciation and amortization. These two measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Non-IFRS financial measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS and are unlikely to be comparable to similar measures presented by other issuers. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective and thus highlight trends in its business that may not otherwise be apparent when relying solely on IFRS measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of the Company. The Company's management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period and to prepare annual operating budgets and forecasts.

ABOUT ORGANTO FOODS

Organto is an integrated provider of branded, private label, and distributed organic and non-GMO fruit and vegetable products using a strategic asset-light business model to serve a growing socially responsible and health-conscious consumer around the globe. 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.

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 and markets; Organto's belief that the Company has made solid progress in the restructuring and realignment of its business focused on a clear path to profitability, sustained growth and long-term stability; Organto's belief that the impact of these restructuring efforts is a key driver of its third quarter and nine-month results; Organto's belief that the combination of its growing business, combined with its strengthened financial position, leads to optimism for the future; Organto's belief that it remains focused on building a world class company focused on growing healthy foods markets with the goal of building lasting shareholder value; 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 and product supply will be increased; 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; and ongoing relations with distributors, customers, employees, suppliers, consultants, contractors, and partners. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing except as required by law.

SOURCE: Organto Foods, Inc.

View the original press release on ACCESS Newswire

FAQ

What were Organto Foods (OGOFF) third quarter 2025 sales and growth rate?

Organto reported Q3 2025 sales of $15.1M, an increase of approximately 189% YoY.

How did Organto's nine-month 2025 sales compare to prior year?

Nine-month 2025 sales were $45.9M, up approximately 222% YoY.

What is Organto's cash and working capital position at September 30, 2025?

Cash was $8.8M (excluding restricted cash) and working capital was $8.6M.

Why did Organto report a net loss despite higher sales in 2025?

Net loss reflects interest/accretion, net derivative losses, and non-recurring debt settlement costs.

How much did Organto reduce short-term loans and convertible debentures by 2025?

Short-term loans and convertible debentures were reduced to $2.5M from $12.5M at Dec 31, 2024.

Did any warrant exercises affect Organto's share count in 2025?

Yes; a holder exercised warrants to purchase 1,000,000 shares at $0.35, generating $350,000 proceeds.