The Albany Gazette - Organto Foods Announces Record First Quarter 2026 Financial Results

TORONTO, ON AND BREDA, THE NETHERLANDS / ACCESS Newswire / May 26, 2026 / Organto Foods Inc. (TSXV:OGO)(OTCQX:OGOFF)(FSE:OGF0) ("Organto" or "the Company"), is pleased to announce its financial results for the three months ended March 31, 2026. All amounts are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS), except where specifically noted.

"We are very pleased with our first quarter 2026 results which we believe reflect the strong momentum and operating leverage we are realizing in our business, combined with the solid financial platform we now have in place. During the first quarter we on-boarded a number of new customers, suppliers and logistics partners, which contributed to the growth we realized. The combination of our growing business, which delivered record results in the quarter, and our strengthened financial position, leads to our optimism as we work to build a world-class organic and fairtrade foods company. With continued execution we believe we are on the path to creating lasting value for our partners, customers, team members and shareholders." commented Steve Bromley, Co-Chair and Chief Executive Officer.

Hi-Lites

• First quarter sales of $25.6 million versus $13.6 million in the prior year, an increase of approximately 88% versus the prior year. Largest quarterly sales in the history of the Company.

• Gross profit of $1.8 million versus $1.1 million in the prior year, an increase of approximately 62% versus the prior year and before the impact of foreign currency hedging contracts. Largest quarterly gross profit dollars in the history of the Company.

• Cash operating costs of 6.2% of sales versus 6.5% in the same quarter in the prior year and 7.6% for the entire prior year. Cash operating costs as a percentage of sales continue to decline as the business scales and overheads are leveraged.

• EBITDA⁽¹⁾ (Earnings before interest, taxes, depreciation and amortization) of $0.1 million in the quarter reflecting strengthening operating results offset by the cost of logistical challenges as the Company expanded its supply and logistics platform combined with the impact of losses on derivatives used to manage currency risk.

• Balance sheet strengthened in the quarter as a result of improved operations and the completion of the early warrant exercise program in February 2026:

  • Cash of $4.1 million (excluding restricted cash) versus $5.7 million on December 31, 2025. Restricted cash of $0.6 million versus $1.1 million in the prior year.

  • Working capital of $14.5 million versus working capital of $7.6 million on December 31, 2025, an improvement of approximately $6.9 million.

  • Net equity of $15.7 million versus equity of 8.8 million on December 31, 2025, an improvement of approximately $6.9 million.

"We are very pleased to now be running at an annualized sales rate in excess of $100 million with our EBITDA trending positively, as expected. These strong results were realized despite the impact of operational challenges in the first quarter as we significantly expanded our supply and logistics base to meet business growth, combined with difficult conditions for sea freight and fuel costs as a result of the conflict in the Middle East. Our team continues to proactively manage these challenges, and we remain focused and committed to building a world-class organic and fairtrade foods company serving growing global healthy and sustainable foods markets, with the goal of creating long-term value for our operating partners, customers, team members and shareholders."

Fiscal 2026 First Quarter Results Overview

• First quarter 2026 sales of $25.6 million versus $13.6 million in the prior year, an increase of approximately 88%. Sales increased throughout the quarter as new business was on-boarded and existing customers expanded their sales versus the prior year. Sales for the first quarter of 2026 are the largest quarterly sales in the Company's history.

• Gross profit of $1.8 million or 7.1% of sales, versus $1.1 million or 8.2% of sales in the prior year, an increase of approximately 62% in gross profit dollars. Adjusted gross profit⁽¹⁾ of $1.7 million or 6.6% of sales when accounting for the impact of realized losses on derivatives versus 8.3% of sales in the prior year. Gross profit dollars for the first quarter of 2026 are the largest quarterly gross profit dollars in the history of the Company. Gross profit in the first quarter was impacted by a combination of extra costs associated with onboarding new customers and related supply chain partners, plus additional logistics related costs resulting from the war in the Middle East, with an estimated impact of approximately $0.3 million in the quarter.

• Cash operating expenses of $1.6 million or 6.2% of sales versus $0.9 or 6.5% of sales in the prior year. Cash operating costs as percentage of sales improved versus the prior periods as the business continues to grow and scale and overheads are leveraged on an expanded platform. Costs in the first quarter of fiscal 2025 were low versus the balance of the year as a number of additional resources were added in the second quarter of 2025 and beyond to manage growth in the business. Costs during the first quarter of 2026 include additional administrative and logistic resources required to support the significant growth in the business.

• Income from operations excluding stock-based compensation of $0.1 million versus $0.2 million in the prior year. Loss from operations of $1.0 million versus income of $0.1 million in the prior year includes stock-based compensation of $1.1 million versus $0.1 million in the prior year.

• Net interest and accretion costs of $0.0 million versus $0.3 million in the prior year, reflecting lower costs as debt was repaid or restructured in 2025, resulted in no long-term debt being outstanding as of March 31, 2026.

• Realized loss of $0.1 million on derivatives versus a gain of $0.0 in the first quarter of 2025. Unrealized gain on derivative assets of $1.3 million versus an unrealized loss of $0.2 million in the prior year. Derivative assets represent hedges on foreign currencies which are intended to protect the Company's gross margin.

• Net loss from continuing operations for the first quarter of $0.0 million versus a loss of $0.3 million in the first quarter of the prior year.

Investor Conference Call

The Company will host a conference call for investors and analysts to discuss its first quarter 2026 financial results on Thursday, May 28, 2026 at 12:00 pm EST. Organto Food's CEO and Co-Chair, Steve Bromley, will provide a corporate update, review the financial results, and discuss the Company's outlook, followed by a Q&A session.

Details on how to attend are detailed below:

• Registration link: https://organto.com/organto-webinar-2026-05-28-nr/

• Date: May 28, 2026

• Time: 12:00 pm EST

The Company's filings including unaudited Financial Statements and accompanying Management's Discussion and Analysis for the quarter ended March 31, 2026, and Audited Financial Statements and accompanying Management's Discussion and Analysis for the year ended December 31, 2025, can be found at www.SEDARplus.ca or at the Company's website at www.organto.com under the Investors tab.

ON BEHALF OF THE BOARD,

Steve Bromley
Co-Chair and Chief Executive Officer

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 news release.

For more information contact:

[email protected]
John Rathwell, Senior Vice President, Corporate Development
647 629 0018

1. The information presented herein refers to the non-IFRS financial measures of adjusted gross profit and EBITDA. We hedge currencies for certain product categories where either the supply or sales commitments are fixed in foreign currencies. The gains and losses from these hedging activities are combined with gross profit to determine adjusted gross profit. We also refer to EBITDA, which is Earnings before interest, taxes, depreciation and amortization. These two measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Non-IFRS financial measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS and are unlikely to be comparable to similar measures presented by other issuers. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective and thus highlight trends in its business that may not otherwise be apparent when relying solely on IFRS measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of the Company. The Company's management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period and to prepare annual operating budgets and forecasts.

ABOUT ORGANTO FOODS

Organto Foods Inc. (TSXV:OGO)(OTCQX:OGOFF)(FSE:OGF0) is a Canadian-headquartered company supplying certified organic and fairtrade produce to leading international retailers. Organto manages global sourcing, logistics, and distribution through an integrated, capital-efficient model that connects growers and consumers with transparency, sustainability, and operational excellence.

FORWARD LOOKING STATEMENTS

This news release may include certain forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"). In particular, and without limitation, this news release contains forward-looking statements respecting Organto's business model and markets; Organto's belief that the Company has made solid progress and is focused on a clear path to profitability, sustained growth, long-term stability and the opportunity to execute on strategic expansion opportunities: Organto's belief that during the first quarter it on-boarded a number of new customer, suppliers and logistics partners which contributed to the growth realized; Organto's belief that based on first quarter sales the Company is now running at an annualized sales run rate in excess of $100 million; Organto's belief that the combination of its growing business, combined with its strengthened financial position, leads to optimism for the future; Organto's belief that it remains focused on building a world class company focused on growing healthy foods markets with the goal of building lasting shareholder value; Organto's belief that its leadership team continues to proactively manage supply chain and logistics challenges; management's beliefs, assumptions and expectations; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about the following: the ability and time frame within which Organto's business model will be implemented and product supply will be increased; cost increases; dependence on suppliers, partners, and contractual counter-parties; changes in the business or prospects of Organto; unforeseen circumstances; risks associated with the organic produce business generally, including inclement weather, unfavorable growing conditions, low crop yields, variations in crop quality, spoilage, import and export laws, and similar risks; transportation costs and risks; general business and economic conditions; and ongoing relations with distributors, customers, employees, suppliers, consultants, contractors, and partners. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing except as required by law.

SOURCE: Organto Foods, Inc.

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(T.Martin--TAG)