eResearch Corp. (www.eresearch.com) published a 13-page Update Research Report on Organic Garage (TSXV:OG | FSE:9CW1) pertaining to Organic Garage’s recent release of its Fiscal Q3/2021 financial statements.

The Canadian chain of organic and natural product grocery stores operate in the Greater Toronto Area (GTA) of southern Ontario, Canada.

The company focuses on providing customers with healthy food choices at a low price point and its store concept checks multiple boxes with today’s food customers including a premium shopping experience with small store convenience.

As a result of the current health crisis, Organic Garage continued to show strong sales growth with Fiscal Q3/2021 revenue of $6.92 million, up 21.6% year-over-year, and continuing the trend from Fiscal Q1 and Q2 that posted year-over-year increases of 19% and 29%, respectively.

Online sales jumped over 40% and increased to 8.5% of total sales in the quarter versus 6.0% in the previous quarter. Online sales continued to grow to meet the demand brought about by stay-at-home shoppers looking for home delivery.

Chris Thompson, Director of Equity Research of eResearch wrote, “We believe this sales trend should continue for most of 2021 and online sales should continue to increase.”

eResearch slightly increased its Fiscal 2021 revenue estimate to $29.6 million from $29.5 million and increased its EBITDA estimate to $2.7 million from $2.2 million due to continued cost reductions that are improving margins.

An upcoming catalyst for Organic Garage includes its new store in the affluent Toronto neighbourhood of Leaside that is slated to open this year and should boost sales by 15-25% next year.

In the GTA, Organic Garage competes with Farm Boy (TSX:EMP.A), Loblaws (TSX:L), and Whole Foods Market (NASDAQ:AMZN).

To read eResearch’s 13-page Update Research Report on Organic Garage, please visit eResearch’s website (www.eresearch.com).

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