The following is a summary of the Organigram Holdings Inc. (OGI) Q2 2024 Earnings Call Transcript:
Financial Performance:
Organigram reported increased cash position due to $124.6 million investment from BAT and a financing round that raised an additional $28.8 million.
Organigram's recreational net revenue increased by 21% to a gross revenue of $57.4 million in Q2 2024. However, due to a decline in international sales, there was a slight contraction to a net revenue of $37.6 million—a 5% decrease.
The company reported a net loss of $27.1 million for Q2 2024 primarily due to lower gross margins and an increase in a fair value loss of derivative liability relating to BAT preferred shares.
Organigram's cash used in operating activities decreased by 54% to $9 million in Q2 fiscal 2024 compared to the same period in the previous year.
The company expects its positive adjusted EBITDA in fiscal 2024 to exceed that of fiscal 2023.
Business Progress:
Organigram announced strategic investments in Phylos Bioscience and Open Book Extracts and completed its first shipment of medical flower to Sanity Group in Germany and cannabis to 4C Labs for distribution in the U.K.
The company remains a leader in the domestic market, holding top positions in major product categories. New innovations like nano-emulsion technology for accurate dosage control and expanded THCV products are slated for launching.
Organigram is transitioning its Moncton facility to seed-based production, expecting to increase yields, reduce costs, and ensure more consistent and robust plant production.
The company is preparing for its national rollout with Greentank following the resolving of identified issues from their test launch.
Organigram is expected to show improved financial results in the second half of fiscal 2024 due to expanded international reach, business efficiency investments, and market share expansion.
The company aims to achieve positive cash flow from operations by the end of fiscal 2024 and plans to continue its expansion in international markets.
More details: OrganiGram IR
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