Bergio International, Inc. (OTCMKTS:BRGO) filed form 10-Q, wherein it stated that net sales for the quarter ended September 30, 2016 dropped 32.5% to $88,986, as against net sales of $131,880 for the quarter ended September 30, 2015. This drop can be linked to a plunge in retail and wholesale sales. The company intends to concentrate on its domestic segment and explore additional prospects to support its operations. This step comes despite the fact that there has been a decline in the market for the firm’s offerings.
Bergio posted that net sales for the preliminary three quarters ended September 30, 2016 gained 19% to $892,795, as against net sales of $749,992 for the same period, a year earlier. This decline can primarily be attributed to a large sale to one of its retail client valued at $497,600, which accounted for nearly 55% of the sales for the initial three quarters ended September 30, 2016.
The sales receivable can be counterbalance with convertible debts which the firm needs to pay to a customer. Bergio plans to focus on its domestic unit and explore additional prospects to advance its business. Overall, there has been a drop in the market for the firm’s items.
For the quarter closed September 30, Gross profit declined 98.9% to $628, as against the gross profit of $56,435 for the same period, a year earlier. This drop in gross profit can be mainly attributed to the selling of the inventory at a significant discount to avail cash for operations. In the reported period, the gross profit was 0.7% as a percentage of sales versus gross profit of 42.7% for the same period, a year ago.
Total S,G &A costs dropped 25.6% and 38% to $491,090 and $121,685, for the nine months and quarter ended September 30, 2016, respectively versus $660,390 and $196,404 for the nine months and quarter ended September 30, 2015, respectively. This decline can be linked to reduced professional fees and marketing costs.