Organigram Holdings Inc. OGI OGI, released its results for the first quarter ended November 30, 2022., revealing net revenue of CA$43.3 million, ($32.3 million) a 43% increase compared to CA$30.4 million in the Q1 fiscal 2022.
Q1 2023 Financial Highlights
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Gross margin was CA$23.9 million compared to CA$610,000 in Q1 fiscal 2022.
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Adjusted gross margin was CA$12.8 million, or 30% of net revenue, compared to CA$5.5 million, or 18%, in Q1 fiscal 2022.
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Adjusted EBITDA was CA$5.6 million compared to negative CA$1.9 million in Q1 fiscal 2022.
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Net income was CA$5.3 million, compared to a net loss of CA$1.3 million in Q1 fiscal 2022.
“Our first quarter of fiscal 2023 demonstrates the success of our expansion at Moncton and continuing productivity improvements in fiscal 2022,” stated Beena Goldenberg, CEO. “In the quarter, we achieved a record harvest and the lowest cost of cultivation in the history of the company. We maintained our market position and are confident our disciplined approach to operations and innovation will drive further success in the rest of the year.”
Outlook
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Organigram currently expects fiscal 2023 revenue to be higher than that of fiscal 2022.
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The company expects Q2 of fiscal 2023 revenue to be higher than Q2 of fiscal 2022.
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The company expects to achieve similar adjusted gross margin rates throughout fiscal 2023 with further cost saving initiatives being put into place to help offset anticipated price compression.
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The company expects to maintain positive adjusted EBITDA throughout fiscal 2023.
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The company generated positive cash flows from operating activities during Q1 fiscal 2023, which was achieved primarily due to positive adjusted EBITDA and a reduction to receivables. While the company expects to continue to generate positive adjusted EBITDA, periods when the company achieves significant increases to sales will result in increases to receivables and this will negatively impact cash from operating activities. The company has a CA$29 million capex budget for fiscal 2023 and if completed as planned during fiscal 2023, the company expects to generate positive free cash flows by the end of calendar 2023.
Price Action
Organigram Holdings shares were trading 8.27% higher at $0.899 during Thursday’s pre-market session.
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