Organic Garage Reports Third Quarter Results
TORONTO – (COMMERCIAL THREAD) – Organic Garage Ltd. (“Bio Garage“or the”Society”) (TSXV: OG, OTCQX: OGGFF, FRA: 9CW1), a leading independent organic grocer in Canada and a developer of herbal products, is pleased to report the Company’s financial results for the quarter ended October 31, 2021 (“Q3”). The Company has a year-end on January 31.
Third Quarter Financial Results (comparison with the quarter ended October 31, 2020):
- Gross margin increased from 30.4% to 31.3%;
- Cash balance $ 2.1 million compared to $ 1.6 million as of January 31, 2021 and $ 0.8 million as of October 31, 2020;
- Sales declined from $ 6.9 million to $ 5.9 million as the impact of Covid-19 overstocking eased. Total third quarter sales did not include any significant contribution from Future of Cheese due to the timing of the Company’s product launch at the end of the third quarter;
- Adjusted net loss1 less an adjusted net loss of $ 117,801 to – $ 288,230;
- Salaries and administrative benefits decreased by 10.0% due to improved efficiency;
- After October 31, 2021 the company received cash proceeds of $ 361,350 from the exercise of the warrants, resulting in a cash balance of approximately $ 2.4 million suitable for storefront growth as well as newly launched Future of Cheese SKUs.
Net loss: The Company recorded a net loss of $ 814,550 for the quarter ended October 31, 2021, compared to a net loss of $ 117,801 for the quarter ended October 31, 2020. The decrease is mainly related to lower sales, not stock-based cash compensation and costs incurred during the refurbishment of one of the Company’s locations (which also affected sales of that location), offset by improved gross margins, lower wages and administrative benefits and transportation costs associated with the phase-out of the Company’s warehouse operations.
The Company completed its transition to a decentralized distribution model in April 2021 and successfully entered into an agreement to sublet the facility located at 50 Akron Road for the remainder of the lease term. During the quarter ended October 31, 2021, the Company’s additional savings amounted to approximately $ 187,000, consisting primarily of savings related to salaries and benefits, transportation and rent.
Matt Lurie, CEO of Organic Garage, commented: “We are satisfied with our third quarter results and the financial and strategic positions in which the company ended the calendar year. We continue to see strong results in our gross margin thanks to management’s concise and methodical purchasing strategies. Improving our margins while dealing with increased inflationary pressures, supply management issues and labor shortages was a significant achievement during the quarter.
“Our handpicked list of partners has garnered excellent feedback from our customers and our recent addition of non-alcoholic beer, wine and spirits through our partnership with Rival House Limited will undoubtedly enhance the shopping experience. in our stores.
“We incurred certain significant non-cash and non-recurring expenses during the quarter, as well as additional expenses incurred to renovate one of our old locations to be in line with the Company’s new locations. We believe these capital expenses and costs will translate into improved operations and improved customer experience.
“Management continues to focus on gradually reducing operating expenses while maintaining and improving our product and service offering. The savings associated with the phase-out of our warehouse continued throughout the quarter, providing management with additional financial flexibility.
“During the quarter and beyond, our online deliveries saw strong demand and positive feedback from customers who are now able to order online from a large geographic footprint.
“Future of Cheese operations continue to scale up and we were extremely pleased to officially launch our butters line at select retailers in Ontario in October, as well as the successful launch of our plant-based brie and infused butter at. the truffle in December. The products have been in high demand and have been very positively received by retail customers and our restaurant partners. It has been very gratifying to see our products on the shelves not only of Organic Garage, but other retailers and partners, and we look forward to building on the success to date.
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 every day. The Company’s stores are located in premier retail locations designed to provide customers with an inclusive, unique and value-driven grocery experience. Founded in 2005 by a fourth generation grocer, Organic Garage is headquartered in Toronto. The Company is focused on continuing to expand its business footprint in the Greater Toronto Area. For more information, please visit the Organic Garage website at www.garageorganique.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.
Non-IFRS financial measures
This press release includes references to certain non-IFRS financial measures. These non-IFRS measures do not have any standardized meanings prescribed by International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and are therefore unlikely to be comparable to similar measures presented by other companies. Therefore, they should not be viewed in isolation, in addition to, or as a substitute for or superior to measures of financial performance prepared in accordance with IFRS.
Caution regarding forward-looking statements
This press release contains certain forward-looking statements and information (collectively referred to herein as “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” , “Continue”, “in progress”, “estimate”, “outlook”, “expect”, “could”, “will”, “plan”, “should” or similar words, including their negative aspects , 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 actual results, level of activity, the performance or achievements of Organic Garage differ materially from 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. In this press release, Organic Garage makes forward-looking statements regarding, but not limited to: the improvement in the shopping experience resulting from the recent addition of beer, wine and non-alcoholic spirits; translating significant non-cash and non-recurring expenses as well as renovation expenses into improved operations and improved customer experience; and building on the success of the Future of Cheese to date.
Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Organic Garage’s actual performance and results to differ materially from any projection of future performance or results expressed or implied by such statements. prospective. 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 not.
1 Adjusted net loss is a non-IFRS measure of financial performance. Adjusted net loss is net loss and other comprehensive income adjusted for non-cash charges, non-cash stock-based compensation and non-recurring non-operating charges.