Canadian cannabis producer Organigram Holdings swung to profitability during the first quarter of its 2023 fiscal year with net income of 5.3 million Canadian dollars ($4 million) despite a quarter-over-quarter decline in revenue.
Net revenue for the quarter ended Nov. 30, 2022, was CA$43.3 million, a decrease of 4.7% from the previous quarter and an increase of 43% compared to the same quarter last year, according to a news release.
Organigram claimed a No. 3 position in the regulated Canadian adult-use marijuana market, with a leading market share in pre-milled cannabis flower and a third-place market share in gummies and hashish.
The company’s overall gross margin for the quarter was CA$23.9 million, improving from CA$14.2 million in the previous quarter.
CEO Beena Goldenberg said in a statement that Organigram achieved “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,” Goldenberg said.
Organigram reported CA$95 million in unrestricted cash and short-term investments as of Nov. 30.
During a Thursday conference call with equity analysts, Goldenberg said the company “(does) have enough cash on our balance sheet to explore other opportunities.”
“This is going to be an interesting year, in 2023,” she continued.
“We all know that with the tight capital markets right now, a lot of companies are low on cash, and there might be great opportunities for us to explore.”
Organigram plans to spend CA$29 million during its current fiscal year on capital expenditures at its Laurentian facility in Lac-Supérieur, Quebec, its edibles manufacturing facility in Winnipeg, Manitoba, and its cannabis cultivation facility in Moncton, New Brunswick.
Shares of Organigram trade as OGI on the Toronto Stock Exchange and the Nasdaq.