Organigram Q4 Revenue Grows 22% YoY To $24.9M, Remains #4 Cannabis LP In Canada

Organigram Holdings Inc. OGI OGI released its results Tuesday for the fourth fiscal quarter ended August 31, 2021, reporting net revenue of $24.9 million, up by 22% from $20.04 million in the same quarter of fiscal 2020. The Moncton, New Brunswick-based cannabis company noted that the increase was primarily due to an increase in adult-use recreational revenue, partly offset by the decrease in international revenue, medical revenue, wholesale revenue to other licensed producers and a lower average net selling price.

Q4 F21 Financial Highlights 

• Net loss amounted to $26.0 million, which compares to a net loss of $38.6 million in the same period a year ago;
• Gross margin increased to a positive result of $3.35 million, from a negative Q4 2020 gross margin of $28.76 million;
• Adjusted gross margin was $3.0 million, or 12% of net revenue, compared to $6.2 million in the fourth quarter of fiscal 2020;
• Adjusted EBITDA was a loss of $4.8 million, compared to an adjusted EBITDA loss of $2.32 million in the same period of last year;
• Selling, general and administrative expenses increased by 26% to $13.6 million from Q4 Fiscal 2020;
• At the end of the reporting period, on August 31, 2021, Organigram had unrestricted cash and short-term investments balance of $184 million compared to $75 million in August 31, 2020, an increase of 145%;

“The results in Q4 Fiscal 2021 demonstrate the momentum we have achieved from our efforts to lead innovation and increase efficiencies. In the quarter, we introduced exciting new products that were embraced by consumers and we achieved higher crop yields at a lower cost” Beena Goldenberg, Organigram CEO stated. “We are particularly pleased with our market share gains in the quarter to become a #4 LP and will build on these successes into Fiscal 2022.”

Outlook

Organigram currently expects Q1 Fiscal 2022 revenue to be higher than Q4 Fiscal 2021 largely due to: stronger forecasted market growth as COVID-19 restrictions continue to lift and the number of retail stores continues to grow and the company is better able to fulfill the demand for its revitalized product portfolio with its increased production.

Net revenue growth is expected from the company’s products as evidenced by Organigram’s increasing national adult-use recreational retail market share from 5.4% in Q3 to 7% in Q4. As of October, momentum continues and the company has reached a 7.9% share of the market, maintaining its position as the #4 LP in Canada.

Price Action   

Organigram’s shares traded 2.15% higher at $1.9 per share during Tuesday’s pre-market session.

Photo: Courtesy of 2H Media on Unsplash