Organigram Holdings Inc. OGI OGI net revenue in Q2 fiscal 2023 increased 24% to CA$39.5 million ($29.3 million), from CA$31.8 million in Q2 fiscal 2022. The increase was primarily due to an increase in international revenue, partly offset by a decrease in medical sales.
Q2 FY 2023 Financial Highlights
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Gross margin was CA$9.8 million, an increase fo 8% compared to CA$9.1 million in Q2 FY 2022.
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Net loss was CA$7.5 million, compared to a net loss of CA$4.0 million in Q2 fiscal 2022.
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Adjusted EBITDA was CA$5.6 million compared to CA$1.6 million in Q2 fiscal 2022.
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On February 28, 2023, the company had unrestricted cash and short-term investments balance of CA$72.0 million compared to CA$98.6 million at August 31, 2022.
“We are pleased with our results in a quarter with typical seasonality. Our market position remains competitive, supported by our leading brand portfolio, strong international sales and customer-focused innovation,” stated Beena Goldenberg, CEO. “Just 12 months after adding hash to our portfolio with the acquisition of our Lac Supérieur facility, we gained the number one position in the hash sector and launched SHRED X Rip-Strip Hash, the first product of its kind in Canada.”
Outlook
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Organigram currently expects Q3 fiscal 2023 net revenue to be higher than that of fiscal Q3 2022 and fiscal Q2 2023.
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The company expects to continue to have adjusted gross margins in excess of 30% throughout fiscal 2023, with further cost savings 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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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 forecasts a cash capex spend of approximately CA$32 million 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.
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Photo: Benzinga edit with photo by Kindel Media on Pexels
Price Action
Organigram shares were trading 14.01% lower at $0.589 per share during Wednesday’s pre-market session.
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