Organigram Reports Third Quarter Fiscal 2024 Results
August 13, 2024
- Net revenue of $41.1 million increased 25% over the prior year period
- Adjusted EBITDA¹ of $3.5 million versus $(2.9) million over the prior year period
- Established European foothold with a strategic investment in Sanity Group, a leading German cannabis company
- Completed landmark clinical study on FAST™ nanoemulsion technology showing faster onset, improved bioavailability of ingestible products
- Pro-forma cash position of $173 million²
TORONTO–(BUSINESS WIRE)– Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), (the “Company” or “Organigram”), a leading licensed producer of cannabis, announced its results for the third quarter ended June 30, 2024 (“Q3 Fiscal 2024”).
THIRD QUARTER HIGHLIGHTS
- Third quarter net revenue increased 25% to $41.1 million compared to $32.8 million in the same prior-year period
- Adjusted gross margin ¹of $14.6 million or 36%, compared to $6.1 or 19% in the same prior- year period
- Net income of $2.8 million, compared to a loss of $213.5 million in same prior-year period
- Adjusted EBITDA¹ increased to $3.5 million in the third quarter compared to a loss of $2.9 million in the same prior-year period
- Pro-forma cash position of approximately $173 million²
- 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, and held the overall #3 market position in Canada³
- #1 market share position in Atlantic Canada, #3 in Ontario, and a top 5 licensed producer in every Canadian province³
- Achieved 9.3% market share in Quebec in Q3 Fiscal 2024, up from 8.2% in Q2 Fiscal 2024³
- Achieved record market share in New Brunswick of 25.8% in Q3 Fiscal 2024, up from 20% in Q2 Fiscal 2024³
- The Company made its first significant European strategic investment to expand its presence in the European cannabis market by acquiring a minority stake in Berlin-based cannabis company Sanity Group GmbH (“Sanity Group”) from existing founders and shareholders for €2.5 million, and advancing €11.5 million to Sanity Group by way of an unsecured convertible note, for a total initial investment of €14 million (approximately $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. The Company now has supply agreements with seven partners in Germany, U.K., Australia and Israel and is evaluating additional global partnership opportunities
- The Company’s first three seed-based production rooms have been successfully harvested, with an average yield of 200g per plant and average THC potency of 25.5%. Four more rooms were harvested in July and the Company aims to increase seed-based production to approximately 30% by the end of calendar 2024
- Subsequent to quarter end, the Company strengthened its auto-flower and rare cannabinoid portfolio through an accelerated partial funding of the final Phylos investment tranche. The remainder of the investment will be funded upon completion of newly expanded milestones that included expanded licensing for high-potency CBD, CBG, CBC, and CBDV cultivars, and delivery of two cohorts of unique, auto-flower seed varietals
- Organigram was recognized for Executive Gender Diversity by the Globe & Mail’s Women Lead Here Report for the fourth consecutive year
“We are pleased to report a strong third quarter, highlighted by a 25% year-over-year increase in net revenue, and a significant improvement in adjusted EBITDA”, said Beena Goldenberg, Chief Executive Officer. “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. I continue to be very proud of our dedicated team for their hard work and contributions to these achievements.”
