Organigram nears profitability as cannabis sales jump to CA$145.8 million

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Cannabis producer Organigram Holdings said its sales soared in the fourth quarter and for the year ended Aug. 31, rising to 45.5 million Canadian dollars ($33.5 million) and $145.8 million, respectively.

The improved sales mark significant growth for the New Brunswick-based company.

Organigram’s net revenue rose 19% in the fourth quarter, from CA$38.1 million in sales in the third quarter, and its annual sales jumped 84% over the previous financial year’s CA$79.2 million.

However, the improved sales announced Monday in a news release weren’t enough to bring the company into the black.

Organigram lost CA$6.1 million in its final quarter of the year, bringing its annual loss to CA$14.3 million.

That marks a major improvement over the 2021 financial year, when Organigram lost CA$130.7 million.

On an adjusted EBITDA basis, Organigram reported positive CA$3.2 million in the fourth quarter and positive CA$3.5 million for the full year.

In a news release, the company said it grew its market share year-over-year, controlling 8.2% of the Canadian adult-use market in the June-August quarter, citing Hifyre data.

In the same period in the previous year, Organigram said it controlled 7% of the market.

The improved market share trend stands in contrast to competitors such as Canopy Growth Corp. and Tilray Brands, which have seen their share of the market plummet over the same period.

Organigram also said it held the top market position in Ontario, the biggest market in Canada, since January, according to data from the Ontario Cannabis Store, the province’s monopoly wholesaler.

“During the year, we increased and optimized production to meet consumer demand, drove market share gains nationally and solidified our position as serious competitors in several new categories,” CEO Beena Goldenberg said in a statement.

“In Fiscal 2023 we expect continued success as we build on the high recognition of our brands, our track record of innovation and our proven ability to execute.”

Organigram also provided an outlook for the upcoming year.

Management expects revenue to continue to grow, citing sales momentum, stronger forecast market growth, plus an expanded product line in multiple segments.

Organigram also expects to see additional revenue from overseas orders, in particular to Israel and Australia.

Net sales in fiscal 2022 compared with 2021, by product category:

  • International flower and oil: CA$15.1 million (versus CA$386,000 last year).
  • Medical: CA$7.3 million (down 16%).
  • Recreational oil: CA$71,000 (down 80%).
  • Recreational flower: CA$92.6 million (up 49%).
  • Recreational vapes: CA$5.6 million (up 46%).
  • Recreational hash: CA$6.3 million (versus no sales last year).
  • Recreational infused pre-rolls: CA$117,000 (versus no sales last year).
  • Recreational edibles: CA$12.3 million (up 726%).
  • Recreational ingestible extracts: CA$5 million (versus CA$313,000).
  • Wholesale and other: CA$1.4 million (down 11%).

As of the end of the quarter, Organigram said it had CA$99 million in cash.

Organigram shares trade as OGI on the Nasdaq and Toronto Stock Exchange.