Organto Foods Announces Second Quarter 2025 Financial Results

Executive Summary

• Organto Foods Inc. reported significant financial results for the three and six-month periods ended June 30, 2025, highlighting substantial year-over-year growth in sales and gross profit.
• Second quarter sales reached $17.2 million, a 291% increase compared to the prior year, marking the largest quarterly sales in the company's history.
• The company also announced the details of a non-brokered private placement of 16,000,000 units at $0.50 per unit, intended to support organic growth and debt repayment.

Key Details

• Q2 2025 Financials (Three Months Ended June 30, 2025):
  • Sales: $17.2 million (up 291% from $4.4 million in the prior year); represents 83% of total fiscal 2024 sales.
  • Gross Profit: $1.3 million (up 352% from $0.3 million); Adjusted Gross Profit was $0.7 million (4.1% of sales).
  • Cash Operating Expenses: $1.2 million, or 6.8% of sales (down from 13.4% in the prior year).
  • EBITDA: $(0.5) million.
  • Net Loss: $7.4 million, driven by $2.5 million in derivative losses, $3.8 million in losses on debt settlement, and $0.7 million in debt restructuring costs.
• Six-Month 2025 Financials (Six Months Ended June 30, 2025):
  • Sales: $30.8 million (up 241% from $9.0 million in the prior year); already 49% greater than total fiscal 2024 sales.
  • Gross Profit: $2.4 million (up 325% from $0.6 million); Adjusted Gross Profit was $1.8 million (6.0% of sales).
  • Cash Operating Expenses: $2.1 million, or 6.7% of sales (down from 11.3% in the prior year).
  • EBITDA: $(0.2) million.
  • Net Loss: $7.6 million, including $2.7 million in derivative losses and $3.8 million in losses on debt settlement.
• Balance Sheet Improvements:
  • Working capital improved to $0.2 million from negative $14.6 million at December 31, 2024.
  • Short-term loans and convertible debentures reduced to $2.5 million from $12.5 million at December 31, 2024.
• Private Placement Details:
  • Structure: Non-brokered private placement of 16,000,000 units.
  • Price: $0.50 per unit.
  • Components: Each unit consists of one common share and one-half common share purchase warrant.
  • Warrant Terms: Exercisable at $0.75 per share for 18 months, with acceleration rights if the share price reaches or exceeds $1.00 for ten consecutive trading days.
  • Use of Proceeds: Growth of organic/fairtrade products, development of technology platform, general working capital, and potential repayment of short-term debt.

Notable Quotes

• "We're quite pleased with our results thus far in 2025, which we believe are a solid reflection of the strong momentum we are building in our business. These results are the result of the extensive restructuring and business realignment we've executed over the past 18 months, which we believe sets a solid foundation for sustained growth, stability, and a clear path to profitability." — Steve Bromley, Co-Chair and Chief Executive Officer