One of Canada’s leading independent organic grocers has released the Company’s financial results for the first quarter ended April 30, 2020, and is pleased to announce an increase in sales, gross profit and positive earnings per share for the quarter. The Company has a Fiscal Year-End of January 31.
“Clearly Q1 presented certain operational challenges related to COVID-19,” Organic Garage CEO Matt Lurie stated. “However, the Company was extremely pleased with how management and staff embraced the challenges to keep our customers and staff safe and healthy, while at the same time continuing to provide the products and services in which Organic Garage takes such great pride.”
The interim condensed unaudited consolidated financial statements for the Company including the operating company and all subsidiaries and related management’s discussion and analysis for the period are available under the Company’s profile on SEDAR at www.sedar.com. All amounts are expressed in Canadian dollars.
Q1 Financial Results (comparison to the quarter ended April 30, 2019):
– Sales increased 19% to $8.0 million from $6.7 million
– Gross profit percentage increased to 30.6% from 29.4%
– Gross profit dollars increased 24% to $2.4 million from $2.0 million
– Net income of $0.01 per share compared to a net loss of $0.01 per share
– EBITDA increased 157% to $1.2 million from $0.4 million
Cash balance: Increased to $1.2 million as compared to $0.2 million as of January 31, 2020.
Net Income: The Company had a net income of $189,403 for the quarter ended April 30, 2020, compared to a loss of $241,950 for the quarter ended April 30, 2019. The increase in net income was due to strong sales of $7,952,876, gross margin of $2,433,910 and total expenses of $2,245,073. As a percentage of sales, total expenses decreased to 28.2% during the quarter ended April 30, 2020, from 33.1% in the quarter ended April 30, 2019.
Q1 Operational Highlights:
Management continues to effect change and see positive results through its implementation of new strategies to contain and reduce corporate expenses and improve efficiency.
The Company has experienced significant growth in online sales through Cornershop, increasing to 6.6% of overall sales in April, up from 3.5% of overall sales in March and up from 1.3% of overall sales in February 2020.
The Company also announced the implementation of the following measures to ensure the safety and satisfaction of both its customers and employees in response to COVID-19:
– Implemented a “Curbside Pickup” option at its Oakville and Thornhill stores.
– Enhanced health and safety, cleaning and sanitization protocols, installed equipment such as plexiglass dividers on front cash and features such as floor markings at checkout and throughout every store to encourage responsible social distancing.
– Increased hourly wages for all team members in the Company.
“We are cognizant of the ongoing challenges faced by the Company regarding COVID-19 and will remain focused on prioritizing the safety of our community. We are confident that management and staff will do whatever we can in order to provide our customers with safe shopping experiences,” continued Matt Lurie. “Subsequent to quarter-end, the Company has continued to experience an increase of in-store and online sales as consumers continue to shift their purchasing trends and Organic Garage expands its customer base.”
