Organto Foods Inc. has announced its financial results for the first quarter ended March 31, 2025, reporting record-breaking sales and the first positive EBITDA in the company's history. All figures are presented in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS), unless otherwise specified.
For the three-month period, Organto achieved sales of $13.6 million, marking a 193.5% increase compared to the same quarter in the previous year. This represents the largest quarterly sales in the company's history and accounts for 66% of its total sales in fiscal 2024.
Gross profit for the quarter rose to $1.1 million, a 298.1% year-on-year increase, also setting a new record for the company. This represents 8.2% of sales, up from 6.0% in the prior year. When adjusted for realized gains on derivatives, gross profit was $1.1 million or 8.3% of sales, compared to $0.2 million or 4.7% last year.
Cash operating expenses totaled $0.9 million, or 6.8% of sales, significantly reduced from 10.5% of sales in the prior year. These expenses reflect the streamlined cost base following the divestiture of three subsidiaries in the second quarter of 2024. The quarter also included approximately $20,000 in legal and listing fees related to re-listing activities.
Income from operations reached $0.1 million, reversing a loss of $0.3 million in the same quarter last year. When adjusted for re-listing costs and derivative gains, income from operations totaled $0.2 million.
Despite this operational improvement, the company reported a net loss of $0.3 million. This included $0.3 million in interest and accretion costs and $0.2 million in unrealized losses on derivative assets and liabilities. In comparison, the net loss in the first quarter of the previous year was $1.5 million, which included the impact of discontinued operations.
Most notably, Organto achieved positive EBITDA of $0.3 million, compared to a loss of $1.2 million in the previous year, marking the first time the company has recorded a positive EBITDA.
Commenting on the results, Chair and CEO Steve Bromley credited the improvement to the company's restructuring and strategic realignment over the past 18 months. He emphasized strong momentum, a leaner cost base, and renewed market strategies as the foundation for Organto's continued growth and path to profitability.
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For more information:
John Rathwell
Organto Foods
Tel: +1 647 629 0018
Email: [email protected]
www.organto.com