Organic Garage Sees Q3 2021 Financials Decline: $5.9 Million In Revenue, $0.8 Million Net Loss
Organic Garage Ltd. (TSXV: OG) reported today the financial results for the third quarter 2021 ended October 31, 2021. The company reported quarterly revenue of $5.9 million, down from Q3 2020’s $6.9 million.
The company is attributing the decrease to the subsiding overstocking impact of COVID-19. The quarterly numbers also did not get any material contribution from the company’s Future of Cheese venture since it was launched at the end of the quarter.
The gross margin for the quarter came in at 31.3%, an increase from last year’s 30.4%. However, with $2.7 million in operating expenses, the company still ended with a net loss of $0.8 million compared to last year’s net loss of $0.1 million.
The decrease in the bottomline is said to be primarily due to the decrease in sales, stock-based compensation amounting to $0.3 million (which was $0 in Q3 2021), and renovation costs incurred at one of its locations.
“We did incur certain significant non-cash and non-recurring expenses during the quarter along with additional expenses incurred in renovating one of our older locations to conform with the Company’s new locations,” said CEO Matt Lurie. “We believe these expenses and capital costs will translate into improved operations and an enhanced customer experience.”
At quarter’s end, the company’s cash balance ended at $2.1 million, putting the balance of current assets at $3.9 million. Current liabilities came in at $5.2 million.
Organic Garage last traded at $0.48 on the TSX Venture.
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