Organto Provides Preliminary 2023 First Quarter Sales and Gross Profit Estimates

Expects Record Revenues and Strong Gross Profit Improvement

VANCOUVER, BC and BREDA, NETHERLANDS / ACCESSWIRE / May 9, 2023 / Organto Foods Inc. (TSX-V:OGO)(OTC:OGOFF)(FSE:OGF) ("Organto" or "the Company"), a leading provider of organic and non-GMO value-added fruit and vegetable products, today provided preliminary unaudited sales and gross profit estimates for the quarter ended March 31, 2023, and reconfirmed fiscal 2023 financial and operational targets.

Organto is pleased to report record preliminary first quarter 2023 sales and strong gross profit improvement versus 2022. These results have been driven by a combination of new business growth initiatives, the acquisition of the New Fruit Group (see January 3, 2023 news release), and actions taken to address the challenging macroeconomic conditions which impacted operations in fiscal 2022.

Preliminary Fiscal 2023 Financial and Operational Outlook

• Record first quarter sales in the range of CDN $7.4 million to CDN $7.5 million, an increase in the range of 5% to 7% versus the same quarter in the prior year. These first quarter sales represent the largest quarterly sales in the history of the Company, and the fifteenth consecutive quarter of currency adjusted sales versus the same quarter in the prior year.
• Adjusted gross profit⁽¹⁾ as a percentage of sales for the first quarter of approximately 9.4% to 9.6%, a significant improvement versus fourth quarter fiscal 2022 adjusted gross profit⁽¹⁾ of 6.0% and fiscal 2022 adjusted gross profit⁽¹⁾ of 7.1%. The improvement in adjusted gross profit is the biproduct of actions taken by the Company to address challenges experienced throughout fiscal 2022.

Fiscal 2023 Financial Estimates Reconfirmed

• Expected $CDN sales dollar growth of approximately 135% versus fiscal 2022.
• Expected $CDN gross profit⁽¹⁾ dollar growth of approximately 200% versus fiscal 2022.
• Expected to be EBITDA positive during the back half of 2023.

"We are pleased with our progress in the first quarter as we have realized the largest quarterly sales in our history, and more importantly, started to realize the benefits of initiatives we continue to implement to improve our gross profit profile after the challenges we faced in 2022 caused by a number of factors including a rapid rise in inflation and the Russia-Ukraine war. While we still have a lot of work to do, we believe we have good momentum in the business as we exit the first quarter and are looking forward to continued growth through the balance of the year." commented Steve Bromley, Chair and Co-CEO of Organto Foods Inc. and Rients van der Wal, Co-CEO of Organto Foods Inc. and CEO of Organto Europe BV.