Organto Foods Inc.

Organto said Q2 sales were $27.7 million, up 61% year over year, and gross profit was $2.1 million, up 65% year over year, with gross margin at 7.5% of sales. EBITDA was positive at $400,000 versus negative $500,000 in the prior year, and cash operating costs were $1.7 million, or 6.3% of sales, versus 6.8% a year ago. Year-to-date sales were $53.3 million, up 73%, gross profit was $3.9 million, or 7.3% of sales, and year-to-date EBITDA was $500,000 versus negative $200,000 in the prior year. The company ended with $5.4 million of cash, $1 million of restricted cash, $15.3 million of working capital, no long-term debt, and $16.4 million of equity; management also said it expanded its Rabobank flexible funding facility from EUR 4 million to EUR 7 million. No formal quarterly or full-year financial guidance was given, but management said the business is running at an annualized sales rate of over $100 million and expects operating costs to keep trending down toward below 5% of sales.

Steve Bromley framed the quarter as the result of a deliberate scaling plan: more customers, more geographies, more logistics capacity, and a stronger operating platform. He emphasized that the company is moving from stabilizing the business to expanding it, including higher-margin products, North America, non-fresh categories, and value-added offerings. His tone was upbeat and confident, but he repeatedly stressed that execution and disciplined growth remain the focus.

There was no separate CFO on the call, so the financial commentary came from management. Bromley highlighted Q2 sales of $27.7 million, gross profit of $2.1 million at 7.5% of sales, cash operating costs of $1.7 million, and positive EBITDA of $400,000. He also pointed to a solid balance sheet with $5.4 million of cash, $1 million of restricted cash, $15.3 million of working capital, no long-term debt, and $16.4 million of equity, plus the Rabobank facility increase from EUR 4 million to EUR 7 million. Management said overheads should continue to leverage down over time, with a target below 5% of sales and toward 4%.

Analysts focused on what drove growth, whether two straight EBITDA-positive quarters can continue, customer stickiness, inflation and fuel costs, diversification away from bananas, value-added products, and M&A. Management said roughly 60% of growth came from new customers and about 40% from existing customers, and it described customers as sticky as long as Organto keeps delivering quality supply. On margins and inflation, the company said consumers of organic and sustainable foods have not materially traded down, and that it is managing fuel and freight costs through pricing, carrier shifts, and coordination with growers. On M&A and expansion, management said the pipeline in Europe and North America is strong, but it has nothing specific to announce yet and hopes to have more to discuss by year-end.