Organto Foods Reports Record Second Quarter 2026 Financial Results

Realizes Record Quarterly Sales, Gross Profit and EBITDA

VANCOUVER, BC AND BREDA, THE NETHERLANDS / ACCESS Newswire / August 11, 2026 / Organto Foods Inc. (TSXV:OGO)(OTCQX:OGOFF)(FSE:OGF0) ("Organto" or "the Company"), is pleased to announce its financial results for the three and six-month periods ended June 30, 2026. All amounts are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (IFRS), except where specifically noted.

"Q-2 2026 was a record quarter for our Company. Our quarterly sales grew 61% to a record $27.7 million, while gross profit and EBITDA (1) also reached quarterly records. Equally important, our balance sheet remains strong with $15.3 million of working capital and no long-term debt. These results demonstrate the strength of our scalable, capital efficient ecosystem and reinforce our confidence in the long-term opportunities ahead." commented Steve Bromley, Co-Chair and Chief Executive Officer.

Key Highlights

Sales increased 61% to a record $27.7 million. Largest quarterly sales in history.

Gross profit increased 65% to a record $2.1 million and adjusted gross profit when accounting for the impact of currency hedging related to gross profit increased to $2.2 million, an increase versus the prior year of 204%. Largest quarterly gross profit dollars in history.

Cash overheads decreased to 6.3% of sales, demonstrating continued operating leverage.

EBITDA (1) improved to a record $0.4 million from a loss of $0.5 million in the prior year. Largest quarterly gross profit in history.

Annualized sales run rate now exceeds $100 million.

Working capital increased to $15.3 million.

No long-term debt outstanding.

Cash balance remained strong at $5.4 million.

Equity of $16.4 million, up 87% in 2026.

Steve Bromley further commented, "These results reflect an important inflection point for our Company, with record sales and record gross profit while achieving record positive EBITDA (1) of $0.4 million compared to negative EBITDA (1) of $0.5 million in the prior year, while at the same time maintaining a strong balance sheet and no long-term debt. With this as a backdrop, we remain focused and committed to building a world-class organic and fairtrade foods company serving growing global healthy and sustainable foods markets, with the goal of creating long-term value for our operating partners, customers, team members and shareholders."

Fiscal 2026 Second Quarter Results Overview

Second quarter 2026 sales of $27.7 million versus $17.2 million in the prior year, an increase of approximately 61%. Sales increased as new business was on-boarded and existing customers increased their sales versus the prior year. Sales for the second quarter of 2026 are the largest quarterly sales in the Company's history.

Gross profit of $2.1 million or 7.5% of sales, versus $1.3 million or 7.4% of sales in the prior year, an increase of approximately 65% in gross profit dollars. Adjusted gross profit (1) of $2.2 million or 7.8% of sales when accounting for the impact of realized gains on derivatives related to gross profit versus 4.1% of sales in the prior year, an increase of approximately 204%. Gross profit dollars for the second quarter of 2026 are the largest quarterly gross profit dollars in the history of the Company.

Cash operating expenses of $1.7 million or 6.3% of sales versus $1.2 million or 6.8% of sales in the prior year. Cash operating costs as percentage of sales improved versus the prior periods as the business continues to grow and scale and overheads are leveraged on an expanded platform. Costs increased with the addition of administrative and logistics resources required to support significant growth in the business.

Income from operations excluding stock-based compensation of $0.3 million versus $0.0 million in the prior year. Loss from operations of $0.5 million versus a loss of 0.3 million in the prior year when including non-cash stock-based compensation of $0.8 million versus $0.3 million in the prior year.

Net interest and accretion costs of $0.1 million versus $0.2 million in the prior year, reflecting lower costs as debt was repaid or restructured in 2025, resulting in no long-term debt being outstanding as of June 30, 2026.

Realized gain of $0.1 million on derivatives versus a loss of $0.6 in the second quarter of 2025. Unrealized gain on derivative assets of $0.2 million versus an unrealized loss of $2.0 million in the prior year. Derivative assets represent hedges on foreign currencies which are intended to protect the Company's gross profit.

Net loss from continuing operations for the second quarter of $0.1 million versus a loss of $7.2 million in the second quarter of the prior year. Prior year results include a loss on the settlement of debt of $3.8 million and restructuring costs of $0.7 million, related to the restructuring of the balance sheet which occurred in 2025.

Fiscal 2026 Six-Month Results Overview

Sales of $53.3 million versus $30.8 million in the prior year, an increase of approximately 73%. Sales increased throughout the first half as new business was on-boarded and existing customers increased their sales versus the prior year.

Gross profit of $3.9 million or 7.3% of sales, versus $2.4 million or 7.7% of sales in the prior year, an increase of approximately 63% in gross profit dollars. Adjusted gross profit (1) of $3.8 million or 7.2% of sales when accounting for the impact of realized losses on derivatives related to gross profit versus 6.0% of sales in the prior year.

Cash operating expenses of $3.3 million or 6.2% of sales versus $2.1 million or 6.7% of sales in the prior year. Cash operating costs as percentage of sales improved versus the prior period as the business continues to grow and scale and overheads are leveraged on an expanded platform.

Income from operations excluding stock-based compensation of $0.4 million versus $0.2 million in the prior year. Loss from operations of $1.5 million versus a loss of $0.1 million in the prior year when including non-cash stock-based compensation of $1.9 million versus $0.4 million in the prior year.

Net interest and accretion costs of $0.1 million versus $0.5 million in the prior year, reflecting lower costs as debt was repaid or restructured in 2025, resulting in no long-term debt being outstanding as of June 30, 2026.

Realized loss of $0.1 million on derivatives versus a loss of $0.5 million in the prior year. Unrealized gain on derivative assets of $1.6 million versus an unrealized loss of $2.2 million in the prior year. Derivative assets represent hedges on foreign currencies which are intended to protect the Company's gross profit.

Net loss from continuing operations of $0.3 million versus a loss of $7.6 million in the prior year. Prior year results include a loss on the settlement of debt of $3.8 million and restructuring costs of $0.7 million, related to the restructuring of the balance sheet which occurred in 2025.

Investor Conference Call

The Company will host a conference call for investors and analysts to discuss its second quarter 2026 financial results on Thursday, August 13, 2026 at 12:00 pm EST. Organto Food's CEO and Co-Chair, Steve Bromley and President, Darryl Bergman, will provide a corporate update, review the financial results, and discuss the Company's outlook, followed by a Q&A session.

Details on how to attend are detailed below:

Registration link: https://organto.com/organto-webinar-2026-08-nr/

Date: August 13, 2026

Time: 12:00 pm EST

The Company's filings including unaudited Financial Statements and accompanying Management's Discussion and Analysis for the quarter ended June 30, 2026, and Audited Financial Statements and accompanying Management's Discussion and Analysis for the year ended December 31, 2025, can be found at www.SEDARplus.ca or at the Company's website at www.organto.com under the Investors tab.

ON BEHALF OF THE BOARD,

Steve Bromley Co-Chair and Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

For more information contact: info@organto.com John Rathwell 647 629 0018

The information presented herein refers to the non-IFRS financial measures of adjusted gross profit and EBITDA. We hedge currencies for certain product categories where either the supply or sales commitments are fixed in foreign currencies. The gains and losses from these hedging activities are combined with gross profit to determine adjusted gross profit. We also refer to EBITDA, which is Earnings before interest, taxes, depreciation and amortization. These two measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Non-IFRS financial measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS and are unlikely to be comparable to similar measures presented by other issuers. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective and thus highlight trends in its business that may not otherwise be apparent when relying solely on IFRS measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of the Company. The Company's management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period and to prepare annual operating budgets and forecasts.

ABOUT ORGANTO FOODS

Organto Foods Inc. (TSXV:OGO)(OTCQX:OGOFF)(FSE:OGF0) is a Canadian-headquartered company supplying certified organic and fairtrade produce to leading international retailers. Organto manages global sourcing, logistics, and distribution through an integrated, capital-efficient model that connects growers and consumers with transparency, sustainability, and operational excellence.

FORWARD LOOKING STATEMENTS

This news release may include certain forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"). In particular, and without limitation, this news release contains forward-looking statements respecting Organto's business model and markets; Organto's belief that Q-2 2026 was a record quarter for the Company; Organto's belief that its quarterly sales grew 61% to a record $27.7 million, while gross profit and EBITDA also reached quarterly records; Organto's belief that its balance sheet remains strong with $15.3 million of working capital and no long-term debt; Organto's belief that Q-2 2026 results demonstrate the strength of its scalable, capital efficient platform and reinforces its confidence in the long-term opportunity ahead; Organto's belief that these results reflect an important inflection point for the Company; Organto's belief that its team remains focused and committed to building a world-class organic and fairtrade foods company serving growing global healthy and sustainable foods markets, with the goal of creating long-term value for its operating partners, customers, team members and shareholders; management's beliefs, assumptions and expectations; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about the following: the ability and time frame within which Organto's business model will be implemented and product supply will be increased; cost increases; dependence on suppliers, partners, and contractual counter-parties; changes in the business or prospects of Organto; unforeseen circumstances; risks associated with the organic produce business generally, including inclement weather, unfavorable growing conditions, low crop yields, variations in crop quality, spoilage, import and export laws, and similar risks; transportation costs and risks; general business and economic conditions; and ongoing relations with distributors, customers, employees, suppliers, consultants, contractors, and partners. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing except as required by law.

SOURCE: Organto Foods, Inc.

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