ORGANTO FOODS INC. Organto Foods Inc.
Company Presentation
April 2024
www.Organto.com | TSX-V:OGO/OTCQB:OGOFF/FSE:OGF | 1 |
Disclaimer
This presentation contains certain forward-looking statements which may not be based on historical fact, including without limitation, statements regarding Organto Foods Inc. ("Organto")' expectations in respect of its ability to successfully execute its business plan; its in-depth knowledge and experience in the organic foods business; plans for future growth and the direction of the business; financial projections including expected revenues, gross margin, EBITDA and cash-flow (the last two being non-GAAP financial measures); plans to increase product volumes and supplies from strategic third party growers and contractors; expected growth of the organic foods industry generally; its ability to raise additional capital and fund its ongoing operations; management's expectations, beliefs and assumptions; events or developments that Organto expects to take place in the future; and general economic conditions. All statements, other than statements of historical facts, are forward-looking information and statements. The words "believe", "expect", "anticipate", "contemplate", "target", "intends", "continue", "budget", "estimate", "may", "will", and similar expressions identify forward-looking information and statements.
Such forward-looking information and statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Organto as of the date of such information and statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information and statements. Such factors include, but are not limited to, the inability of Organto to generate sufficient revenues and margins or raise sufficient funds to carry out its business plan; the impact of the global COVID-19 pandemic and Russia/Ukraine conflict on customer demand and supply chains, supply availability and ongoing operations; changes in government legislation, taxation, controls, regulations and political or economic developments in various countries; risks associated with agricultural activities generally, including inclement weather, access to supply of organic products, poor crop yields, and spoilage; ability to maintain organic certifications; compliance with import and export laws of various countries; significant fluctuations in food prices and transportation costs; the risk of obtaining necessary licenses and permits; the ability to retain key employees and contractors; dependence on third parties for services and supplies; non-performance by contractual counterparties; the ability to acquire complimentary and accretive businesses on acceptable terms; and general economic conditions;. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing except as required by law. Many of these uncertainties and contingencies could affect Organto's actual performance and cause its actual performance to differ materially from what has been expressed or implied in any forward-looking information and statements made by, or on behalf of, Organto. Readers are cautioned that forward-looking information and statements are not guarantees of future performance. There can be no assurance that such information and statements will prove to be accurate and actual results and future events could differ materially from those acknowledged in such information and statements.
Organto disclaims any intention or obligation to update or revise any forward-looking information and statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
www.Organto.com | TSX-V:OGO/OTCQB:OGOFF/FSE:OGF | 2 |
Highlights
Fast-growing healthy foods platform
Asset light
business
model
Broad and
flexible product offering
Diverse
customer and
supply base
Value-added organic and non-GMO fruit
and vegetable products platform
Transitioned from asset heavy to asset light business model with expansion flexibility
Organic and non-GMO
Bulk, private label and branded
Approx 170 customers in approx. 19
countries with product sourced globally from approx. 50 suppliers in approx. 18 countries
Strong growth
realized over
five years
Multi-Tier
branded product offering
Growth
platform -
opportunities beyond fresh
Experienced
team and
board
Five consecutive years of revenue
growth
I AM Organic, ORO and =AWESOME
Fruits brands
Opportunities to leverage digital
technologies and move beyond fresh into non-fresh and consumer products
Over 200 years of combined foods
experience
www.Organto.com | TSX-V:OGO/OTCQB:OGOFF/FSE:OGF | 3 |
At a Glance
Facts
3 Listings | 2015 | 170 | 50 | 3 |
TSX-V, OTCQB | Founded with | Customers | Strategic growers - | Owned brands |
asset heavy | ||||
and FSE | 100%l Global GAP | |||
business model | ||||
certified | ||||
FY22/YTD23 | 2019 | 19 | 18 | 14 |
FY '22 ACT CDN$22.5m | Transitioned to | Countries | Sourcing | Retail clients |
FY '23 EST CDN$27-28m | asset-light | countries | ||
served | ||||
business model | ||||
Customer and supplier data based on last twelve months
Mission, Purpose, Vision, Values
Our mission of making organic fruits and vegetable products available for every consumer aligns with
today's consumer trends - "good for people & planet"
OUR | OUR | OUR | |
PURPOSE | VISION | VALUES | |
To bring healthy and nutritious | To be a leading global provider | Working together as a team, | |
organic fruit and vegetable | of organic fruit and vegetable | honouring and respecting our | |
products to market by creating | products utilizing an integrated | customers and supply chain | |
sustainable and transparent | business model, trusted for | partners, respecting the world | |
linkages between growers and | driving equitable returns to all | we live in and do what is right | |
end markets | parties in the value chain | for long-term sustainability | |
www.Organto.com | TSX-V:OGO/OTCQB:OGOFF/FSE:OGF | 4 | |
Continued Global Demand for Healthy Living
The Global Organic Foods Market
is expected to have a five-year CAGR of
14% CAGR from 2021-2026
Source: Organic Food Global Market Report 2022
Consumers are becoming more interested in healthy | ||||||
eating, and prioritize it over affordability | ||||||
Consumers interested to | Consumers choose | Fruits & vegetable products are the largest and | ||||
64% | learn about influence of | 60% health over | fastest growing category in organics | |||
food over health | affordability | |||||
Source: 2021 Deloitte Conscious Consumer - Connecting With Health and Sustainability | Source: CDN. Organic Trade Assoc. | |||||
Priorities | ||||||
The European Union Green Deal targets a carbon | ….and is expected to have a significant impact on | |||||
neutral footprint in the EU by 2050 and includes a Farm | demand for organic foods consumption in Europe with | |||||
to Fork Strategy focused on healthy people, healthy | a target of 25% of farming in the EU being organic by | |||||
societies and a healthy planet……. | 2030 versus current estimate of approx. 8-10% | |||||
5 | ||||||
www.Organto.com | ||||||
TSX-V:OGO/OTCQB:OGOFF/FSE:OGF | ||||||
Efficient Asset Light Business Model
OUR PLATFORM
Growing & Initial | Supply Chain | Further | Value-Added | Branding, | Retail and |
Processing | Logistics | Processing | Packaging | Marketing, | Consumers |
Distribution |
Diverse certification, | Utilise strategic 3rd | Extensive market | Ability to value-add | Flexible and | |
sourcing, logistics, | party growers, logistics | knowledge and supply | with limited capital | adaptable to ever- | |
packaging, marketing | and processing | chain expertise "links | investment | changing market | |
and distribution | partners | growers with end | dynamics | ||
expertise | markets | ||||
www.Organto.com | TSX-V:OGO/OTCQB:OGOFF/FSE:OGF | 6 | |||
Added Value From Farm to Fork
Opportunity to continue to move "upstream" with growers to enhance value proposition
Sourcing | Our | |||
projects | Organic | Brands | ||
Quality | ||||
Assurance | ||||
Customers in | ||||
Farmgate | Inbound | premium | ||
sourcing in origin Sourcing | Trading | Processing | markets in EU, | |
Logistics | ||||
country | and Asia | |||
ESG
Impact
Digital Platform
Our Value Add
Sourcing/Growers
- Certification expertise/Quality assurance
- "Boots on the ground"
- Value-addedgo-to-market partner
Supply Chain
- Global network of logistics and processing partners
- Year-roundsupply capabilities in core categories
- Ownership of inventory
Products
- Diverse product offering
- Multiple formats - bulk, private label and branded
- Value-addedformats
Brands
- Premium I AM Organic brand utilizing proprietary digital passport technology
- Non-GMObrands - ORO and =Awesome Fruits
www.Organto.com | TSX-V:OGO/OTCQB:OGOFF/FSE:OGF | 7 |
Our Business Model Has Evolved and Progressed
✓ Successfully transitioned to an efficient and
flexible asset-light business model in 2018/2019 | Sales and Gross Profit Evolution |
000's |
- Shift from 'demand pull' to 'source push' strategy in 2022/2023 to improve go-to-market and cost-effectiveness
- Five years of sales growth versus the prior year
- Developed multi-tier branded product offering to meet customer needs
- Positioned for expansion beyond the fresh category leveraging digital technology
$30,000 | Asset Heavy | Asset Light | 0.2 | |||||||||
$25,000 | 0.1 | |||||||||||
$20,000 | 0 | |||||||||||
$15,000 | -0.1 | |||||||||||
$10,000 | -0.2 | |||||||||||
$5,000 | -0.3 | |||||||||||
$- | -0.4 | |||||||||||
2016A | 2017A | 2018A | 2019A | 2020A | 2021A | 2022A | 2023 EST | |||||
-$5,000 | -0.5 | |||||||||||
Sales | Gross Profit | Gross Profit % | ||||||||||
- Pro-activeacquisition strategy - completed 3 acquisitions in 2021 and 4th in January 2023
- Assembled experienced leadership team and board of directors with deep industry knowledge
- Looking Forward -
"Focus on scaling and diversifying
operations and driving to positive cash
flow and profitability"
www.Organto.com | TSX-V:OGO/OTCQB:OGOFF/FSE:OGF | 8 |
Product Portfolio
In the last 12 months we served approximately 170 customers across 19 countries in Europe and recently added sales in Asia, with a focus on tropical fruits and tastemakers
ORGANIC FRUITS | ORGANIC VEGETABLES |
Bananas | Asparagus |
Avocado | Herbs |
Mango | Ginger |
Raspberries | Finegreenbeans |
Limes | Snowpeas |
Apples | Sugarsnaps |
Wide-rangeofproductstomeetconsumer preferences
Product Segmentation | ||
Premium Branded | Cost | Organic |
Mid-Tier Branded & Private Label | ||
Bulk Distributed | non-GMO |
Productssoldinmultiple formatsandmultiple channels
Customer Segmentation
Bricks and Mortar Retail
On-Line Retail
Convenience - TO GO
Distributors/Wholesalers/Service Providers
www.Organto.com | TSX-V:OGO/OTCQB:OGOFF/FSE:OGF9 |
Supply Chain Continues to Grow, We "Follow the Sun"
Sourcing countries
- Integrated year-round supply chains
- We work with our valued strategic growers and supply chain partners to control and monitor each step in the supply chain, delivering quality products with complete transparency
- We use geographically diverse growing regions to "follow the sun" with the objective of minimizing our ecological footprint as we source product from around the globe
- We source from many countries in Europe, North and South America, Africa and Asia
- Asset-lightbusiness model provides flexibility, scalability and capital efficiency
www.Organto.com | TSX-V:OGO/OTCQB:OGOFF/FSE:OGF | 10 |
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Disclaimer
Organto Foods Inc. published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 07:15:07 UTC.
