Organic Garage Posts Highest Year-End Sales Since Company Inception, 33% Sales Increase in Fourth Quarter

TORONTO – (BUSINESS WIRE) – Organic Garage Ltd. (“Organic garage“or the”Company”) (TSXV: OG, OTCQX: OGGFF, FRA: 9CW1), one of Canada’s leading independent organic grocers, is pleased to announce the Company’s audited financial results for the year ended January 31, 2021 and the quarter ended January 31, 2021 (“Q4”), reporting a significant increase in sales and gross margin for the quarter, resulting in the most profitable and profitable year in the history of the Company. The company has a year-end on January 31.

Q4 financial results (comparison with the quarter ended January 31, 2020):

  • Sales increased 32.7% to $ 7.3 million from $ 5.5 million
  • Gross profit in dollars increased 21.9% to $ 2.2 million, from $ 1.8 million
  • Net loss improved to $ 0.1 million from a loss of $ 3.0 million
  • Loss per share of $ (0.00) compared to a loss per share of $ (0.08)
  • Raised $ 1.0 million through a private placement offer without a broker
  • Working capital $ 1.0 million of a working capital shortfall of $ (1.0) million

Net revenue: The Company recorded a net loss of $ 133,200 for the quarter ended January 31, 2021 compared to a net loss of $ 2,975,318 for the quarter ended January 31, 2020. The increase is due to strong sales of 7,338 $ 592, gross margin of $ 2,199,100 and total expenses of $ 2,323,808. As a percentage of sales, total expenses decreased to 31.8% in the quarter ended January 31, 2021, from 46.6% in the quarter ended January 31, 2020, excluding a goodwill impairment of 2,233,968 $ incurred in January 2020.

Matt Lurie, CEO of Organic Garage, commented, “As our fiscal year comes to an end, we are extremely proud to report on our results on what has been a transformative year for our company. Our fourth quarter marked another period with very positive results and our 33% increase in fourth quarter sales highlights the strengthening of the relationship we have with our existing customers and the growth of our customer base.

“Not only have we significantly increased our revenue every quarter of this year, but we have also been successful in containing and reducing our operating expenses, even with additional expenses related to COVID-19 that we have incurred to ensure the safety of our customers and staff. .

“We ended the fourth quarter with a remarkable improvement in our working capital and cash position compared to a year ago, which has allowed us to continue to be successful in the next fiscal year and to continue to grow. focus on creating value for our shareholders. ”

Year-end financial results (comparison with the year ended January 31, 2020)

  • Sales increased 25.3% to $ 30.3 million from $ 24.1 million
  • Gross profit in dollars increased 33.2%, from $ 6.7 million to $ 8.9 million
  • Net loss improved to $ 0.3 million from a loss of $ (5.1) million
  • Loss per share of $ (0.01) compared to a loss per share of $ (0.14)
  • EBIDTA $ 2.8 million compared to a loss of $ (1.8) million
  • Cash flow from operating activities of $ 1.2 million compared to a loss of $ (0.8) million
  • Cash position strengthened to $ 1.6 million from $ 0.2 million

Net revenue: The Company recorded a net loss of $ 263,322 for the year ended January 31, 2021 compared to a net loss of $ 5,083,566 for the year ended January 31, 2020. The increase is due to strong sales of $ 30,276,372, a gross margin of $ 8,928,134 and total expenses of $ 9,194,583. . As a percentage of sales, total expenses decreased to 30.3% for the year ended January 31, 2021, compared to 39.6% for the year ended January 31, 2020, excluding a depreciation goodwill of $ 2,233,968 incurred in January 2020.

Lurie said: “For the future, we have some very interesting and important catalysts for our business. We announced our acquisition of The Future of Cheese at the end of our fiscal year and have worked diligently since then to prepare the company for the launch of its first three products. I look forward to working with the highly capable team at Future of Cheese led by co-founders Afrim Pristine and Craig Harding to bring their fabulous products to market very soon.

The Company announced in the second quarter of fiscal 2021 its intention to switch to a decentralized distribution model, completing the transition in April 2021 and successfully entering into an agreement to sublet the facility located at 50 Akron Road for the remainder. the duration of the lease. The Company will realize significant operating savings from this change, and in addition to covering the remaining cash payments on the facility of approximately $ 1.0 million, the Company has negotiated a premium on top of the remaining payments. required in the sublease agreement.

“Our record year-end results are a testament to the performance of the entire Organic Garage team,” continued Lurie. “In addition to growing our sales and earnings, we have also continued to reduce our expenses and expect significant savings through our recently announced transition from a centralized distribution model going forward. The future looks very bright and we will continue to capitalize on the growth opportunities that match our value mandate.

Events subsequent to the end of the 2021 financial year

  • Recognized on February 25, 2021 as one of the top 50 companies on the TSX Venture Exchange. The TSX Venture 50 is the stock exchange’s flagship program, ranking the 10 best performing companies in five sectors.

  • Announcing the start of trading on the OTCQX market and DTC eligibility to increase liquidity and opportunities for US-based investors.

  • Generated an additional $ 305,880 in cash for the Company through the exercise of warrants and stock options.

  • Completed the transition from a centralized distribution model to a decentralized distribution model in April 2021. The company expects cost savings of approximately $ 1.0 million on an annual basis.

  • Expansion of the list of handpicked partners to include Cheese Boutique and Tori’s Bakeshop.

  • Continued strong online sales to support sustained revenue growth.

Webcast and conference call details

The company will host a webcast and conference call to discuss financial results, business outlook and updates on The Future of Cheese on Wednesday, June 2.nd at 12:00 p.m. ET / 6:00 p.m. CEST.

Investors and interested parties can join the webcast by visiting the following link:

https://meetingconnectsales.adobeconnect.com/_a989745297/og2021/

Conference call numbers:

Local – Toronto (+1) 416-764-8646

Toll Free – North America (+1) 888-396-8049

ITF – Germany 08007240293

Conference ID 23032246

Please call the conference phone number 10 minutes before the start time. An operator will register your name and phone number.

A replay of the conference call will be available after 2:30 p.m. ET on June 2nd until Monday July 5e, 2021 at 12:00 p.m. EST.

Phone proofreading numbers:

Toronto (+1) 416-764-8691 English

Montreal (+1) 438-798-3291 English

Toll Free – North America (+1) 877-674-6060 English

Reading code: 032246 #

About Organic Garage Ltd.

Organic Garage (TSXV: OG, OTCQX: OGGFF, FRA: 9CW1) is one of the leading independent organic grocers in Canada and is committed to providing its customers with a wide selection of healthy and natural products at affordable prices from all over the world. days. The Company’s stores are located in premier retail locations designed to provide customers with an inclusive, unique and value-driven grocery experience. Founded in 2005 by a fourth generation grocer, Organic Garage is headquartered in Toronto. The Company is focused on continuing to expand its business footprint in the Greater Toronto Area. For more information, please visit the Organic Garage website at www.garageorganique.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution regarding forward-looking statements

This press release contains certain forward-looking statements and forward-looking information (collectively referred to in these “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “Continuous”, “in progress”, “estimate”, “outlook”, “expect”, “could”, “will”, “plan”, “should” or similar words, including their negative aspects, suggesting future results.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, many of which are beyond the control of Organic Garage, which may cause actual results, level of activity, performance. or the achievements of Organic Garage are materially different from those expressed or implied by these forward-looking statements. Although Organic Garage has attempted to identify material factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that may cause the results to be inaccurate. not those anticipated, estimated or anticipated.

Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some of which are described herein. These forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Organic Garage’s actual performance and results to differ materially from any projection of future performance or results expressed or implied by such forward-looking statements. . All forward-looking statements are made as of the date hereof and, except as required by law, Organic Garage assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

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