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Organigram Holdings Inc. (OGI), a licensed producer of cannabis and a constituent in the munKNEE.com Canadian Cannabis LP Index, announced its results for Q3 of FY2024 ended June 30th, 2024, yesterday, as follows:
Q3 Financial Highlights
Net Revenue: UP 9.3% to $41.1M
SG&A Expenses: DOWN 26.7% to $14.8M
- as a % of Net Revenue: DOWN to 36.0% from 53.7%
Adj. EBITDA: UP to $3.5M from $(1.4)M
- as a % of Net Revenue: UP to 8.5% from (3.7)%
Net Profit (Loss): UP to $2.8M from $(27.1)M
- as a % of Net Revenue: UP to 6.8% from (72.1%}
Q3 Operational Highlights
Held the #1 position in milled flower, #1 in hash, #1 in pure CBD gummies, #3 in edibles, #3 in pre-rolls, #3 in dried flower, the overall #3 market position in Canada, #1 market share position in Atlantic Canada, #3 in Ontario, and a top 5 licensed producer in every Canadian province.
Achieved a 9.3% market share in Quebec, up from 8.2% in Q2, a 25.8% market share in New Brunswick, up from 20% in Q2.
Acquired a minority stake in Berlin-based cannabis company Sanity Group GmbH for a total initial investment of €14 million or approximately C$21 million. Sanity Group is a leading German cannabis company with a robust distribution network, collaborating with over 2,000 pharmacies and approximately 5,000 physicians across the high growth German market.
Signed two new international supply agreements in Australia and the U.K. and now has supply agreements with seven partners in Germany, U.K., Australia and Israel and is evaluating additional global partnership opportunities.
Announced that the Company’s first three seed-based production rooms had been successfully harvested.
Management Commentary
Beena Goldenberg, Chief Executive Officer said:
“…Our strategic investments and partnerships, both domestically and internationally, have positioned us for growth and diversification, particularly in the European market with our investment in Sanity Group.
Furthermore, the preliminary results from our landmark PK study on our latest patent pending nanoemulsion technology demonstrate our ongoing commitment to innovation and expanding our product offerings…”
Greg Guyatt, Chief Financial Officer said:
“We are pleased with the results of our focus on operating efficiencies and resulting margin improvements and positive adjusted EBITDA in the quarter.
With $173 million in pro-forma cash, we believe we have one of the strongest balance sheets in the industry and are well positioned to capitalize on future growth opportunities.”
Stock Performance
As of the close of business yesterday Organigram’s stock was UP 7.7% so far in August and is now UP 38.2% YTD.More By This Author: AI-Focused Drug Discovery Stocks Portfolio Hit Hard: Down 14% MTD
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