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Organigram Holdings Inc. (Nasdaq: OGI) (TSX: OGI), a licensed producer of cannabis and a constituent in the munKNEE.com Canadian Cannabis LP Index, announced its results for Q2 of FY2024 ended March 31st, 2024, today, as follows:
Q2 Financial Highlights
Net Revenue: UP 3.0% to 37.6M
- International Sales increased to 9.6% of Net Revenue from 1.8%
SG&A Expenses: DOWN 3.3% to $20.2M
- as a % of Net Revenue: DOWN to 53.7% from 57.4%
Adj. EBITDA: Improved to $(1.4)M from $(13.0)M
- as a % of Net Revenue: DOWN to (3.7)% from (35.6)%
Net Profit (Loss): Loss UP 71.5% to $(27.1)M
- as a % of Net Revenue: Increased to 72.1% from 41.8%
Q2 Operational Highlights
Held the #2 in edibles, #3 in pre-rolls, #3 in dried flower, and held the overall #3 market position in Canada
Completed first international flower shipment to Sanity Group GmbH in Germany and first flower shipment to 4C Labs Ltd. for UK distribution
Completed preliminary European Union Good Manufacturing Practices (“EU-GMP”) audit of the Moncton facility
Received manufacturing equipment for nano-emulsion technology at its Winnipeg facility to begin scale up and anticipated gummy launch in the fall
Closed strategic investment in OBX of US $2 million structured as a convertible note
Completed first harvest of seed-based production and planted additional seed-based grow rooms resulting from technology acquired from the strategic investment in US-based Phylos
Management Commentary
Beena Goldenberg, Chief Executive Officer said:
“…Organigram is now the only licensed producer among the top three licensed producers in Canada with significant cash, negligible debt, and sizeable funds earmarked for strategic international investment.,,
Domestically, we grew our market share throughout Q2 Fiscal 2024 and we remain focused on driving additional gains in the back half of Fiscal 2024 by expanding distribution, introducing new products, and executing high-impact retail campaigns.”
Greg Guyatt, Chief Financial Officer said:
“…We are expecting international revenue to continue along the growth trajectory we have seen over the last two quarters… [and continue to] lower cultivation costs, which…[should], begin to flow through to our income statement in Q3 fiscal 2024.
…We are on track to deliver full-year adjusted EBITDA that will exceed that of Fiscal 2023 and positive cash flow from operations before working capital changes.”
Stock Performance
As of the close of business at the end of last week Organigram’s stock was UP 34.4% YTD and it has risen 4.4% so far today.More By This Author:Largest Clinical-Stage BioTech Drug Stocks Declined 3% Last Week
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