Organic Garage (TSX-V:OG) Ltd released its 3Q 2021 results that showed its gross profit margins increased despite inflationary pressures and supply chain issues that faced many retailers this year.
The grocery store chain posted revenue of $5.9 million during the three-month period to end October 31, 2021, compared to $6.9 million in the same year-ago quarter as the impact of pandemic-related overstocking subsided, according to Organic Garage.
Gross profit margin, however, increased from 30.4% to 31.3%.
READ: Organic Garage says Future of Cheese has launched a truffle-infused plant-based butter for the holiday season
Organic Garage noted that its third quarter sales total did not include any material contribution from its Future of Cheese division due to the timing of the launch of the company’s products at the end of the quarter.
The company ended its quarter with a beefed-up cash position of $2.1 million, up from the $0.8 million it had in its coffers in fiscal 3Q 2020.
“We are pleased with our 3Q results and both the financial and strategic positions in which the company has finished the calendar year. We continue to see strong results in our gross profit from management’s concise and methodic purchasing strategies,” CEO Matt Lurie said in a statement.
“Having improved our margins while facing increased inflationary pressures, supply management issues, and labour shortages was a significant accomplishment during the quarter. Our Hand-Picked Partners roster has garnered great feedback from our customers and our recent addition of non-alcoholic beer, wine and spirits through our partnership with Rival House Limited will no doubt improve the shopping experience at our store locations.”
The company reported a net loss of $815,000 compared to a loss of $118,000 in the same year-ago period, primarily related to a decrease in sales, non-cash stock-based compensation and costs incurred during the renovation of one of its locations, which also affected sales at the store.
CEO Lurie noted online deliveries saw strong demand and positive reactions from customers, who are now able to complete online orders from a large geographical footprint.
“The Future of Cheese operations continue to ramp up, and we were extremely excited to officially launch our line of butters across selected retailers in Ontario in October along with the successful launch of our plant-based brie and truffle-infused butter in December,” Lurie added.
“The products have been in high demand and have been received very positively by retail customers and our restaurant partners. It has been very gratifying to see our products on the shelves of not only Organic Garage, but other retailers and partners, and we look forward to building on the success achieved to date.”
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