Organto Provides Update on Operations and Forecast for Record First Quarter 2020 Results

Announces Participation in Investor Update Webinar on Tuesday, March 31, 2020 at 11:00 am EST

VANCOUVER, BC / ACCESSWIRE / March 30, 2020 / Organto Foods Inc. (TSXV:OGO)(OTCPINK:OGOFF) (“Organto” or “the Company”), an integrated provider of fresh organic vegetables and fruits today provided a further update to its previous news release dated March 18, 2020 related to ongoing operations during the COVID-19 pandemic. In addition, Organto provided an update on forecast record revenues and gross profits for the first quarter of 2020, and announced that Steve Bromley, Chair and Interim CEO and Rients van der Wal, COO & CEO of Organto Europe B.V. will be participating in Adelaide Capital Investor Relations webinar series on Tuesday, March 31, 2020 at 11:00 am EST, to provide an update on European operations during the COVID-19 pandemic.

Business Operations During COVID-19 Pandemic

Organto continues to manage operations remotely via the Company’s information technology and communication systems which permit full operational and administrative capabilities from remote locations. Demand for food at retail remains strong throughout key European markets, and to this point the Company’s supply chains have continued to operate in difficult circumstances, as governments prioritize food operations as essential during the crisis. Organto continues to believe its diverse sourcing and logistics expertise combined with flexible supply chain capabilities has positioned the Company for success, both in the short and long term. Organto continues to carefully monitor developments and will update stakeholders as new information becomes available.

First Quarter 2020 Revenue Guidance

For the first quarter ended March 31, 2020 Organto expects to realize record first quarter revenues of approximately CDN $1.6 to CDN $1.65[1] million, an increase of approximately 1,200% versus the same quarter in the prior year. First quarter revenues are being driven by sales of organic asparagus, avocado, mangos and other fruits and vegetables, which are sold to a diverse customer base of traditional retailers, specialty organic retailers and distributors, located in the Netherlands, U.K., Belgium, Germany, France, Spain, Russia, Sweden, Norway and Denmark. Gross profits are also expected to be a first quarter record and significantly improved versus the prior year. Forecast results for the first quarter will represent three consecutive quarters of record revenues and gross profits for the Company, confirming the benefits of the Company’s repositioned business model and demonstrating Organto’s ability to operate effectively during the COVID-19 crisis.

Investor Webinar – Tuesday, March 31, 2020 at 11:00 AM EST

Steve Bromley, Chair and Interim CEO and Rients van der Wal, COO & CEO of Organto Europe B.V. will be participating in Adelaide Capital Investor Relations webinar series on Tuesday, March 31, 2020 at 11:00 am

[1] Forecast is based on shipping a variety of organic and conventional products including avocados, asparagus, mangoes and other products with an average sales price ranging from CDN$4-$11/kilo of sold product. We anticipate sourcing products from numerous suppliers and countries including, but not limited to, Morocco, Peru, Argentina, Zimbabwe and others.

EST to provide an update on European operations during the COVID-19 pandemic. After opening remarks there will be a question and answer period. The presentation for the webinar may be accessed on Organto’s website at www.organto.com/investors/presentations. To register for this webinar, please click the following URL in advance: https://zoom.us/webinar/register/WN_YAOaLs1jQBamDIA1ybUGsg

ON BEHALF OF THE BOARD,

Steve Bromley
Chair and Interim 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:

Investor Relations
604-634-0970
1-888-818-1364
info@organto.com

ABOUT ORGANTO

Organto’s business model is rooted in its commitment to sustainable business practices focused on environmental responsibility and a commitment to the communities where it operates, its people and its shareholders. The Organto Foods Group is an integrated provider of year-round value-added branded organic vegetables and seasonal organic and non-GMO fruit and vegetable products using an asset-light business model to serve a growing socially responsible and health conscious consumer around the globe.

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 ability to continue to manage operations remotely; Organto’s belief that demand at European retail remains strong; Organto’s belief that certain governments are focused on keeping food retail businesses and supply chains operational during the COVID-19 pandemic; Organto’s belief that supply chain partners are continuing to operate and the Company is well positioned for the short and long-term; Organto’s expectation that revenues in the first quarter of 2020 will be in the range of CDN $1.6 to CDN $1.65 million: 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.

View source version on accesswire.com:
https://www.accesswire.com/583184/Organto-Provides-Update-on-Operations-and-Forecast-for-Record-First-Quarter-2020-Results

error: Content is protected !!