The Company is pleased to announce its financial results for the quarter ended April 30, 2022 (“Q1”). The Company has a Fiscal Year End of January 31. All figures presented are in Canadian Dollars, the Company’s functional currency.
Q1 Financial Results (comparison to the quarter ended April 30, 2021);
Net loss of $650,278 compared to $907,013 for the quarter ended April 30, 2021;
Store wages and benefits decreased by 11.7% due to management of staffing and improved efficiencies.
Gross Profit of $1,604,718 compared to $2,029,495 for the quarter ended April 30, 2021;
Net loss: The Company had a net loss of $650,278 for the quarter ended April 30, 2022, compared to a net loss of $907,013 for the quarter ended April 30, 2021. Net loss was attributed to a decrease in sales due to the Company’s decision to complete significant renovations at one of the older Organic Garage retail locations, non-cash stock-based compensation of $91,044, and costs incurred during the renovation, offset by decreases in store wages and benefits, professional fees and costs savings related to the Company’s phase-out of warehouse operations.In February 2022, the Company announced the change of its name from Organic Garage Ltd. to Oragin Foods Inc. and the launch of a Consumer Packaged Goods (CPG) Division which currently has one portfolio company, the Future of Cheese, and separate operations through ORAGIN’s Retail Division (Organic Garage).
Matt Lurie, CEO of ORAGIN, commented, “We achieved several operational goals during the quarter, including a significant renovation to one of our locations. The impact of the renovations was felt through our reported results; however, we expect that the short-term negative impacts will be offset by the long-term expectations for the location, including enhanced customer experience and operational efficiencies. Consistent branding and unified offerings across all our locations is a focus for the Company with our existing locations as we plan for future store expansion. The Company now has the majority of its locations with consistent award-winning branding and services, and the decision to engage in the renovation during this time was part of our long-term planning.
“In relation to the Future of Cheese, during Q1 we were excited to announce the addition of industry executive Matt Merson and continue to focus on both domestic expansion and entrance into the U.S. market. The CPG Division continues to actively engage and evaluate select M&A opportunities to grow our portfolio and our bottom line.”
“Looking forward through the rest of the fiscal year, we are expecting fiscal improvements for the associated areas of our operations that faced non-recurring expenses last year. Management continues to focus on incremental operating expense reduction while at the same time maintaining and improving our product and service offering at each of our locations. We acknowledge the challenges facing the business in regard to in-store sales and are working diligently to ensure that we are navigating the macro economic environment that is weighing heavily on businesses across the retail spectrum with strategy and purpose. We are excited for the go forward path of ORAGIN and both of our divisions continue to show opportunity for growth.”