Organigram reported positive adjusted EBITDA of 1.6 million Canadian dollars ($1.27 million) on the back of growing international medical cannabis sales in the second quarter, marking a key milestone for the Moncton, New Brunswick, producer.
The adjusted EBITDA gain, a measure of profitability, comes two quarters ahead of the company’s initial estimate.
Organigram reported CA$31.8 million in net sales in the second quarter ended Feb. 28, up from CA$30.4 million in the previous quarter and CA$24.9 million in the final quarter of last year.
The sales momentum comes as competitors such as Tilray and Canopy Growth Corp. recently reported lower sequential sales.
Organigram’s net loss in the quarter was CA$4 million.
Gross Canadian adult-use cannabis revenue was CA$36.8 million in the December-February period, down slightly from the previous quarter’s CA$38.8 million.
Canadian medical cannabis sales were relatively flat at CA$2.1 million in the second quarter.
Organigram’s international sales in the quarter were CA$4.5 million, up from CA$3.4 million in the first quarter.
In its earnings release, Organigram also said rising sales helped the company’s market share reach 8.2% in February, which is the third-best among Canadian producers.
Organigram also said it maintained the No. 1 position in dried flower, which is the largest category in the industry by sales.
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“The culture of innovation and consumer focus we are building at Organigram has enabled us to not only create brands that are embraced by consumers, but continually innovate within those brands and across multiple product lines,” CEO Beena Goldenberg said in the release.
“We expect that leveraging these brands will allow us to continue to drive market share.
“In addition to our continued success at building beloved brands, our ability to increase sales in international markets and capitalize on our accretive acquisitions, such as Laurentian and EIC (The Edibles & Infusions Corp.), continue to contribute to our solid gains in market presence and sales growth.”
Organigram acquired Quebec producer Laurentian Organic last last year in a deal worth at least CA$36 million and EIC in April 2021 for CA$22 million.
As of Feb. 28, the company had CA$151 million in cash.
Organigram shares trade as OGI on the Nasdaq and Toronto Stock Exchange.
