Report
FREE
• Organto has completed a restructuring, including realigning and streamlining operations, the sale of underperforming subsidiaries, converting its debt to equity, and a series of private placements. The Company is now set up for an excellent 2025 and beyond.
• Organto grew revenue 291% YoY in Q2 and 194% YoY in Q1, building upon the 48% revenue growth in 2024. Management is aiming to be adjusted EBITDA positive in 2025, after years of negative levels.
Organto Foods Inc. (OGO:TSXV, OGOFF:OTC) operates as a supplier of organic, fairtrade and non-GMO fruit and vegetable products to end-consumers in Europe. OGO acts as a value-added bridge between growers and retailers while contributing to its products through light processing, packaging, and branding. Organto recently completed a restructuring, allowing it to focus on its core products, deliver rapid topline growth, and expand margins. We are re-initiating coverage on Organto with a BUY rating and target price of $1.00/share.
Investment Thesis Summary
Restructured & Repositioned. OGO completed a 21-month restructuring, repositioning, and refinancing in September 2025, cleaning up its balance sheet and setting itself up for success moving forward. During the restructuring, OGO sold certain underperforming subsidiaries, converted most of its debt to equity, and completed a series of private placements. OGO had only $2.6M in debt at the end of Q2/25 compared to $12.5M in Q1/25.
Continued Rapid Growth. OGO’s continuing operations grew sales 48% in 2024, and management is targeting accelerated growth in 2025 by gaining market share in the fresh segment in Europe, potentially entering North America and the Middle East, and expanding into non-fresh organic ingredients. In Q1/25, OGO generated $13.6M in sales (+194% YoY) and in Q2/25, OGO generated $17.2M in sales (+291% YoY). Sales in the first half of 2025 are 49% above sales for all of 2024.
Margin Expansion. Management has guided for positive EBITDA in 2025, driven by its sales growth and realigned cost structure; Q1/25 was the first positive EBITDA quarter in history. H1/25 gross margins increased to over 7% versus less than 5% in the prior year. We expect gross margins of 8% and EBITDA margins of breakeven in 2025, scaling higher in 2026 and beyond as OGO scales revenue.
Industry Tailwinds. The global organic foods market is expected to grow at an 11% CAGR over the coming years as consumer preferences continue to shift towards the healthy and sustainable foods segments.
Strong Team. OGO is led by a team of industry professionals, including CEO and Co-Chair Steve Bromley, who spent 15 years at SunOpta (SOY:TSX, $1B mkt cap) as CEO, CFO, and COO. The team also includes other SunOpta alumni and other seasoned industry professionals. Management and the board collectively own 19%.
Valuation. OGO trades at 1.3x 2026E sales, a modest valuation for its hyper-growth. OGO is up 644% YTD, and we expect the multiple to continue expanding, reflecting OGO’s superior growth and thus a continued valuation re-rating.
OGO: Restructured & Ready to Grow
What you need to know:• Organto has completed a restructuring, including realigning and streamlining operations, the sale of underperforming subsidiaries, converting its debt to equity, and a series of private placements. The Company is now set up for an excellent 2025 and beyond.
• Organto grew revenue 291% YoY in Q2 and 194% YoY in Q1, building upon the 48% revenue growth in 2024. Management is aiming to be adjusted EBITDA positive in 2025, after years of negative levels.
Organto Foods Inc. (OGO:TSXV, OGOFF:OTC) operates as a supplier of organic, fairtrade and non-GMO fruit and vegetable products to end-consumers in Europe. OGO acts as a value-added bridge between growers and retailers while contributing to its products through light processing, packaging, and branding. Organto recently completed a restructuring, allowing it to focus on its core products, deliver rapid topline growth, and expand margins. We are re-initiating coverage on Organto with a BUY rating and target price of $1.00/share.
Investment Thesis Summary
Restructured & Repositioned. OGO completed a 21-month restructuring, repositioning, and refinancing in September 2025, cleaning up its balance sheet and setting itself up for success moving forward. During the restructuring, OGO sold certain underperforming subsidiaries, converted most of its debt to equity, and completed a series of private placements. OGO had only $2.6M in debt at the end of Q2/25 compared to $12.5M in Q1/25.
Continued Rapid Growth. OGO’s continuing operations grew sales 48% in 2024, and management is targeting accelerated growth in 2025 by gaining market share in the fresh segment in Europe, potentially entering North America and the Middle East, and expanding into non-fresh organic ingredients. In Q1/25, OGO generated $13.6M in sales (+194% YoY) and in Q2/25, OGO generated $17.2M in sales (+291% YoY). Sales in the first half of 2025 are 49% above sales for all of 2024.
Margin Expansion. Management has guided for positive EBITDA in 2025, driven by its sales growth and realigned cost structure; Q1/25 was the first positive EBITDA quarter in history. H1/25 gross margins increased to over 7% versus less than 5% in the prior year. We expect gross margins of 8% and EBITDA margins of breakeven in 2025, scaling higher in 2026 and beyond as OGO scales revenue.
Industry Tailwinds. The global organic foods market is expected to grow at an 11% CAGR over the coming years as consumer preferences continue to shift towards the healthy and sustainable foods segments.
Strong Team. OGO is led by a team of industry professionals, including CEO and Co-Chair Steve Bromley, who spent 15 years at SunOpta (SOY:TSX, $1B mkt cap) as CEO, CFO, and COO. The team also includes other SunOpta alumni and other seasoned industry professionals. Management and the board collectively own 19%.
Valuation. OGO trades at 1.3x 2026E sales, a modest valuation for its hyper-growth. OGO is up 644% YTD, and we expect the multiple to continue expanding, reflecting OGO’s superior growth and thus a continued valuation re-rating.
Underlying
Organto Foods Inc
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Nicholas Cortellucci, CFA
Other Reports on these Companies
Other Reports from Atrium Research Corporation
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.