Organto Provides Fiscal 2023 Estimates and Operational Outlook

Projects Strong Sales and Gross Profit Growth

VANCOUVER, BC and BREDA, the NETHERLANDS / ACCESSWIRE / January 30, 2023 / Organto Foods Inc. (TSX-V:OGO)(OTCQB:OGOFF)(FSE:OGF) ("Organto" or "the Company"), a leading provider of organic and non-GMO value-added fruit and vegetable products, today provided fiscal 2023 sales, gross profit and EBITDA estimates and operational updates, plus preliminary unaudited fourth quarter sales and full year 2022 sales and gross profit estimates.

Highlights:

Preliminary Fiscal 2023 Financial and Operational Outlook

• Expected $CDN sales dollar growth of approximately 135% versus fiscal 2022.
• Expected $CDN gross profit dollar growth of approximately 200% versus fiscal 2022.
• Expected to be EBITDA positive in the back half of 2023.
• Full integration of recently acquired The New Fruit Group (see January 3rd news release) over the course of the year.
• Expected on-boarding of a number of new retail and wholesale customers throughout Europe.
• Expected sales growth of the Company's flagship I AM Organic brand of approx. 35% versus fiscal 2022.
• Continued implementation of digital platform technologies which are expected to drive significant business opportunities and efficiencies throughout the organization.
• Launch of new consumer-friendly brands including the = AWESOME Fruits non-GMO brand which was launched earlier this month (see January 18th news release).

Preliminary Unaudited Fourth Quarter and Full Year 2022 Sales Estimates

• For the fourth quarter of 2022, sales grew to approximately $5.5 million, representing an approximate 12% increase year-over-year on a currency-adjusted basis, the largest fourth quarter in the history of the Company, and the fourteenth consecutive quarter of record sales growth versus the same quarter in the prior year.
• For the full year 2022, sales increased approximately 14%, and approximately 23% on a currency adjusted basis, to approximately $22 million as compared to 2021, a significant increase as compared to 2020 pre-pandemic revenue of CDN $11.5 million, and the fourth consecutive year of record sales growth versus the prior year, and largest annual sales in the history of the Company. Adjusted gross profit⁽¹⁾ as a percentage sales was approximately 7.0 % for the full year.
• The Company's year-end cash balance remained healthy at approximately $5.8 million.

"In 2022, our business realized sales growth of approximately 14% before the impacts of a reduced Euro to Canadian dollar exchange rate. Currency-adjusted revenues increased by approximately 23%. Significant macroeconomic challenges impacted the industry and our business including a rapid increase in inflation, continued supply chain challenges, rapid changes in foreign exchange, the lingering effects of the global COVID-19 pandemic, and the Russia/Ukraine war, all of which impacted our customer base, supply chains, and costs. Despite these challenges, experience and management depth played a major role in navigating all of these and we were able to realize record sales, continue to develop our brands and related technologies, and complete the strategic and accretive acquisition of the New Fruit Group." commented Rients van der Wal, Co-CEO of Organto Foods Inc. and CEO of Organto Europe BV.