Oragin Foods Inc. Reports Second Quarter Results

ORAGIN Foods Inc. (“ORAGIN”, “Oragin Foods” or the “Company”) (TSXV: OG) (OTC: OGGFF) (FRA: 9CW) is a Canadian multi-faceted food company operating a Consumer Packaged Goods (CPG) Division where new and innovative food and beverage brands are developed, acquired, grown and commercialized as well as a Retail Division that operates one of Canada’s leading natural and organic food retailers, Organic Garage. The Company is pleased to announce its financial results for the quarter ended July 31, 2022 (“Q2”). The Company has a Fiscal Year End of January 31. All figures presented are in Canadian Dollars, the Company’s functional currency.

Q2 Financial Results (comparison to quarter ended July 31, 2021);

• Net loss of $789,768 compared to $383,130 for the quarter ended July 31, 2021;
• Sales decreased 17.3% from $6.8 million to $5.7 million and was impacted by renovations to one of its older retail store locations that reached completion in June;
• Gross Profit of $1,685,845 compared to $2,249,196 for the quarter ended July 31, 2021;
• Store wages and benefits decreased by 7.9% due to management of staffing and improved efficiencies.

Net loss: The Company had a net loss of $789,768 for the quarter ended July 31, 2022, compared to a net loss of $383,130 for the quarter ended July 31, 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 which was finalized during the second quarter, non-cash stock-based compensation of $46,498, non-capitalized costs incurred during the renovation and non-cash depreciation of $428,932, offset by decreases in store wages and benefits and costs savings related to the Company’s phase-out of warehouse operations.

In June, the Company was named to the Corporate Knights’ inaugural Future 50 Fast-Growing Sustainable Companies in the Canada list. Recognition as a market leader in the transition to a global clean economy resonates with our loyal customer base and reiterates the Company’s commitment to provide sustainable products and business practices.

Matt Lurie, CEO of ORAGIN, commented, “We continue to focus on and prioritize our operational goals for both the short- and long-term as well as strategies to increase in-store sales, including enhanced and targeted advertising and promotion. The renovations impacted our second quarter sales and results; however, we expect that the short-term negative impacts will be offset by the long-term expectations for the location.