Organic Garage Ltd sees gross profit margins and cash balance rise in Q3 as online orders heat up

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The company ended its quarter with a strengthened cash position of $2.1 million, compared to $0.8 million it had in its coffers in Q3 2020.

Organic Garage (TSX-V:OG) Ltd has released its Q3 2021 results which show its gross profit margins have increased despite inflationary pressures and supply chain issues that many retailers have faced this year.

The grocery chain posted revenue of $5.9 million in the three-month period ending Oct. 31, 2021, compared to $6.9 million in the same quarter a year ago. The impact of pandemic-related overstocking has eased, according to Organic Garage.

The gross profit margin, however, fell from 30.4% to 31.3%.

READ: Organic Garage says Future of Cheese has launched a truffle-infused vegan butter for the holiday season

Organic Garage noted that its third quarter sales total did not include any significant contribution from its Future of Cheese division due to the timing of the company’s product launches at the end of the quarter.

The company ended its quarter with a strengthened cash position of $2.1 million, compared to $0.8 million it had in its coffers in Q3 2020.

“We are pleased with our 3rd 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 profit thanks to management’s concise and methodical buying strategies. said CEO Matt Lurie in a statement.

“Improving our margins while dealing with increased inflationary pressures, supply management issues and labor shortages was a significant achievement during the quarter. Our hand-picked list of partners has garnered great feedback from our customers and our recent addition of non-alcoholic beer, wine and spirits through our partnership with Rival House Limited will no doubt enhance the shopping experience. purchase in our stores.

The company reported a net loss of $815,000 compared to a loss of $118,000 in the same period a year ago, mainly related to lower sales, non-cash stock-based compensation and costs incurred during the renovation of one of its locations, which also affected store sales.

CEO Lurie noted that online deliveries have garnered strong demand and positive feedback from customers, who are now able to place orders online from a wide geographic footprint.

“Future of Cheese operations continue to ramp up, and we were extremely pleased to officially launch our line of butters at select retailers in Ontario in October, along with the successful launch of our plant-based brie and infused butter. truffle in December,” Lurie added.

“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 of not only Organic Garage, but also other retailers and partners, and we look forward to building on the success to date.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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