Organic Garage posts third-quarter results
For its third quarter ended Oct. 31, 2021, independent grocer and plant-based product developer Organic Garage Ltd. reported a sales decrease from $6.9 million in the year-ago period to $5.9 million as the impact of COVID-19 overstocking subsided.
Meanwhile, the company reported a net loss of $-814,550 for the quarter, compared to a net loss of $-117,801 in Q3 2020. This was primarily related to a decrease in sales, non-cash stock-based compensation and costs incurred during the renovation of one of its five stores, which also affected that location’s sales, offset by improved gross margins; a 10% decrease in administrative wages and benefits, due to improved efficiencies; and transportation costs related to the phase-out of warehouse operations.
The company completed its shift to a decentralized distribution model in April 2021, and successfully entered into an agreement to sublease the facility for the remainder of the lease term. During the quarter, Organic Garage’s incremental savings were approximately $187,000, consisting primarily of savings related to wages and benefits, transportation and rent.
“We continue to see strong results in our gross profit from management’s concise and methodic purchasing strategies,” said Organic Garage CEO Matt Lurie, in a press release. “Having improved our margins while facing increased inflationary pressures, supply management issues and labour shortages was a significant accomplishment during the quarter.”
Though Organic Garage faced significant expenses during the quarter, Lurie expressed confidence that “these expenses and capital costs will translate into improved operations and an enhanced customer experience.”
The company's Q3 sales didn’t include any material contribution from its plant-based subsidiary Future of Cheese because its products launched at the end of the quarter. Lurie said Future of Cheese's operations would continue to ramp up following the October launch of its butter alternatives and its rollout of a plant-based brie and truffle-infused butter in December.