Organic Growth And Innovation Drive YoY Increase In Cannabis Producer Organigram's Q4 Revenue And Adjusted EBITDA

Organigram Holdings Inc. OGI OGI reported on Tuesday its fourth quarter financial results for the three months ended Sept. 30., revealing an 11% year-over-year increase in net revenue to CA$161.6 million ($120.7 million).

Moreover, the Canadian producer reported a 71% increase in adjusted EBITDA over the same period reaching nearly CA$6 million in the fourth quarter of fiscal 2023.

CEO Beena Goldenberg holds a positive outlook for the company's growth potential driven by the successful accomplishment of numerous initiatives in fiscal 2023.

“In Fiscal 2023, our continued focus on innovative products that address consumers' evolving preferences toward convenience drove our growth across several ready-to-consume categories like pre-rolls and edibles, and we ended the year in the #2 market position which we held as of November 30th,” Goldenberg said on Tuesday in a press release. "”n Fiscal 2024 we expect improved margins from efficiencies tied to our completed facility upgrades and growth in higher margin categories such as craft flower and vapes, while the $124.6 million financial commitment from BAT expedites our plans for international growth.”

See also: Organigram Shares Trading Lower On Q3 Revenue Decline Of 14% YoY Impacted By THC Inflation

Q4 2023 Financial Highlights

• Adjusted gross margin was CA$40.2 million, representing an increase of 20% over CA$33.4 million in fiscal 2022. Adjusted gross margin percentage was 25% compared to 23% in fiscal 2022.
• Net loss increased to CA$248.6 million, from CA14.3 million net loss in the last year's period, primarily due to impairments on PP&E, intangibles, and goodwill.
• Selling, general and administrative expenses increased to CA$72.4 million, compared to CA$59.8 million in fiscal 2022.
• Net cash used in operating activities before working capital changes was CA$38.8 million, compared to CA$36.2 million in fiscal 2022.

OGI Price Action

Organigram's shares traded 1.42% higher at $1.3286 per share during the pre-market session on Tuesday morning.

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