Organto Foods Hits Record Quarter, Sets Stage for Strategic Expansion
A Record Quarter
Organto Foods reported a record second quarter, with “record sales of $27.7 million, largest sales quarter in the history of the company, up 61% versus the prior year” — Steven Bromley, CEO and co-chair · 2026-08-13. Gross profit grew even faster, up 65% to $2.1 million, and the company posted its first positive EBITDA of $400,000, reversing a $500,000 loss a year ago. As CEO Steve Bromley noted, the company is now running at an annualized sales rate of over $100 million. This quarter’s performance is a clear inflection point, validating the strategic repositioning that began three years ago.
The company’s strategic growth is not just about the top line. Management emphasized that overheads are leveraging down as a percentage of sales—cash operating costs fell to 6.3% of sales from 6.8% a year ago—while the balance sheet strengthened: working capital reached $15.3 million, equity climbed to $16.4 million, and the company carries no long-term debt. The expansion of its Rabobank facility from EUR 4 million to EUR 7 million provides additional firepower.
Beyond Bananas: Diversification and M&A
Organto is intentionally diversifying its product mix, moving from volume to higher-margin value-added products. CEO Steve Bromley explained the strategy: “We’re going to selectively add new products to the platform where we deserve to win” — Steven Bromley, CEO and co-chair · 2026-08-13, pointing to the berry category and further downstream processing. The company now serves 20 major retail accounts across 16 European countries, and it has opened a new center of excellence in Madrid alongside an expanded one in Munich, reinforcing its center of excellence operating model.
The M&A pipeline is also active. President Darryl Bergman noted, “the M&A pipeline in both geographic regions is strong” — Darryl Bergman, President · 2026-08-13, and the company is actively evaluating opportunities in Europe and North America. Entering North America would position Organto as the only organically focused fresh-food platform operating on both sides of the Atlantic—a differentiator that could unlock significant value for existing customers and growers.
Managing Cost Pressures in a Volatile Environment
Rising fuel costs are a key challenge, and Organto is responding with agility. Bromley highlighted the team’s hands-on approach: “we’ve had to shift volumes between shipping lines based on how they were on some of the bath, which is the diesel fuel for the boats” — Steven Bromley, CEO and co-chair · 2026-08-13. The stable gross margin from Q1 to Q2 (7.5% in Q2 vs. 7.3% year-to-date) demonstrates pricing discipline and supply chain management, even as the industry as a whole struggles.
Management’s focus on risk management and operating leverage is central to its key priorities for the back half of 2026. Darryl Bergman reiterated, “We’ll continue scaling our core European Fresh platform,” while driving toward cash overheads below 5% of sales. The company is also investing in AI and digital technologies to improve efficiency—a long-term journey that should further enhance margins.
Outlook
With a record first half, a strengthened balance sheet, and a clear roadmap for expansion, Organto is moving from survival to growth. The next few quarters will be telling, as M&A promises and new product launches materialize. As Bromley said, “The future is bright. Execution is key and the time is now.”
This is a small-cap story, but the evidence of a genuine turnaround is strong. The combination of record sales, EBITDA positivity, and a strategic pipeline makes Organto worth watching for investors focused on organic food and sustainable growth.