ORAGIN Foods Inc. has announced its results for the second quarter ended July 31, 2022 which were impacted by significant renovations at one of its retail locations.
The company said the short-term impact of the renovations are expected to be offset by long-term benefits.
In a statement, Matt Lurie, CEO of ORAGIN commented: "We continue to focus on and prioritize our operational goals for both the short- and long-term as well as strategies to increase in-store sales, including enhanced and targeted advertising and promotion.
“The renovations impacted our second quarter sales and results; however, we expect that the short-term negative impacts will be offset by the long-term expectations for the location.”
READ: Oragin Foods says Q1 results see short-term impact from renovations
Net losses amounted to $789,768 in the quarter, compared to a loss of $383,130 for the same period in in 2021.
Sales decreased 17.3% from $6.8 million to $5.7 million due to renovations at one of the older Organic Garage retail locations, which was finalized during the second quarter.
Store wages and benefits decreased by 7.9% due to management of staffing and improved efficiencies.
"Management acknowledges that there are continuing challenges facing the business regarding in-store sales, distribution, and the labour market, and are working diligently to ensure that we are navigating the economic environment with strategic purpose,” said Lurie.
"Looking forward through the third and fourth quarters, we are focusing on fiscal improvements for the associated areas of our operations that faced non-recurring expenses last year, a recovery of in-store sales, and improved gross margin.
“We continue to remain excited and optimistic for the go-forward path of Oragin Foods and both of our divisions continue to show opportunity for growth," the CEO concluded.
ORAGIN Foods is a Canadian multi-pronged food company, where new and innovative food and beverage brands are developed, acquired, grown and commercialized through a consumer packaged goods (CPG) division.
The company also houses a retail division, which owns and operates one of Canada's leading natural and organic food retailers, Organic Garage.
Contact the author at jon.hopkins@proactiveinvestors.com