Organic Garage reports its most profitable year after seeing 4Q sales increase by 33%

Organic Garage Ltd (CVE:OG) (OTCQX:OGGFF) has recorded the highest-grossing and most profitable year in its history after seeing a big bump in fourth-quarter revenue. The Canadian independent organic grocer reported revenue of C$7.3 million in its fiscal 4Q 2020, up 32.7% from $5.5 million in the comparable year-ago quarter, while its gross profit came in at C$2.2 million, a 21.9% increase from the $1.8 million posted in the prior year. The company's net loss improved to $133,200 or $0.00 per share from $1.8 million or $0.08 per share. READ: Organic Garage says newly acquired Future of Cheese scaling up R&D to accelerate advancements in its plant-based, dairy-comparable proteins The 4Q numbers helped propel the Toronto-based chain to its best financial year ever, according to Organic Garage. Full-year 2020 sales increased by 25.3% to $30.3 million from $24.1 million, while gross profit increased 33.2% to $8.9 million from $6.7 million in fiscal 2019. The group’s full-year net loss improved to $263,322, or $0.01 per share, from $5.1 million or $0.14 per share. Organic Garage said it had working capital of $1 million compared to a deficit of $1 million in the same year-ago period. CEO Matt Lurie called 2020 a “transformational year” for the company. “Our fourth quarter marked another period with very positive results and our 33% increase in 4Q sales highlights the strengthening relationship we have with our existing customers and growing customer base,” Lurie said in the results statement. “Not only did we significantly grow our top-line revenues each quarter this year, but we also managed to successfully contain and reduce our operating expenses even with additional incremental expenses related to COVID-19 that we incurred to ensure the safety of our customers and staff. We concluded the fourth quarter with a remarkable improvement to our working capital and cash position in comparison to a year ago, setting us up for continued success into the next fiscal year and allowing the company to continue to focus on delivering value for our shareholders," he added. Looking ahead  Organic Garage recently completed its transition to a decentralized distribution model – a move it says will realize “significant operational savings.” The firm also finalized the acquisition of The Future of Cheese at the end of fiscal 2020 and is preparing to launch the first three products. “Our record year-end results speak to the execution of the entire Organic Garage team,” Lurie added. “In addition to growing our sales and profit we also continued to lower our expenses and we anticipate significant savings as a result of our recently announced transition from a centralized distribution model going forward. The future looks very bright and we will continue to capitalize on growth opportunities that fit our value mandate.” Contact Angela at angela@proactiveinvestors.com Follow her on Twitter @AHarmantas