Canadian cannabis company Organigram Holdings Inc.(NASDAQ:OGI) (TSX:OGI) reported its financial results Tuesday for the second quarter that ended March 31, 2024, revealing net revenue of CA$37.63 million ($27.53 million), compared to CA$39.5 million in the same period of last year.
"We are pleased with our performance against the strategic priorities we laid out at the beginning of Fiscal 2024," stated CEO Beena Goldenberg. "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. We have also made solid progress toward our goal of diversifying our exposure to international markets through our Jupiter fund and increasing our customer base abroad. 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."
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Fiscal Q2 Financial Summary
- Net loss amounted to CA$27.08 million, a 262% change from net loss of CA$7.49 million in the same period of 2023. The increase in net loss from the comparative period, the company attributed primarily to lower unrealized gain on changes in the fair value of biological assets and change in fair value of derivative liabilities of $12.5 million.
- Adjusted EBITDA was a loss of CA$1.05 million, versus an adjusted EBITDA gain of CA$5.65 million in the corresponding period of last year.
- The gross margin before fair value changes to biological assets, inventories sold, and other charges was CA$11.26 million, which compares to a gross margin of CA$9.85 million in the second fiscal quarter of 2023.
- Selling (including marketing), general & administrative expenses grew 25% year-over-year to CA$20.16 million.
- Cost of sales decreased to CA$26.4 million, from CA$29.6 million in the same period of 2023, primarily due to higher inventory provisions in the second fiscal quarter of 2023 of CA$3.2 million related to net realizable value adjustments of inventories
- On March 31, 2024, the company had cash (restricted & unrestricted) of $83.6 million.
OGI Price Action
Organigram shares traded flat at $1.84 per share during Tuesday's pre-market session.
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