Cannabis company Organigram Holdings Inc. (NASDAQ:OGI) (TSX:OGI) announced its results for the first quarter ended November 30, 2021.
“Our record-breaking results in the first quarter of fiscal 2022 are a testament to our successful strategy to create innovative, high-quality products that align with the evolving preferences of the various segments of cannabis consumers,” Beena Goldenberg, the company’s CEO, said. “Our positive outlook for 2022 is further bolstered by the addition of Laurentian’s premium products to our portfolio, with an increased presence in Quebec and the resumption of international sales, which will continue through the year.”
Q1 2022 Financial Highlights
- Compared to the prior year, net revenue increased 57% to $30.4 million, from $19.3 million in the first quarter of fiscal 2021, representing a highest quarterly net revenue in the history of the company.
- Cost of sales increased by 20% to $27.9 million year-over-year, primarily as a result of the increase in sales volume in the adult-use recreational market.
- Gross margin before fair value changes to biological assets, inventories sold, and other charges, improved to $2.5 million from negative $3.8 million in the prior year’s period.
- Gross margin increased to a positive result from negative first quarter 2021 gross.
- Adjusted gross margin was $5.5 million, or 18% of net revenue, compared to $1.9 million, or 10%, in the corresponding quarter of 2021.
- Selling, general and administrative expenses increased by 21% to $12.6 million from $10.5 million in the first quarter of 2021.
- First quarter 2022 negative adjusted EBITDA improved to $1.9 million compared to $5.7 million in the first quarter of fiscal 2021.
- Net loss was $1.3 million, compared to a net loss of $34.3 million in the same quarter of 2021.
- Net cash used in operating activities was $9.3 million. In the first quarter of fiscal 2021, cash provided by operating activities was $0.3 million.
Q1 & Recent Operational Milestones
- Launched Edison JOLTS, an ingestible extract lozenge, maintains its top selling position within its category.
- Launched 13 new stock-keeping units (SKUs) for a total of 49 SKUs available in the market, covering key categories.
- Maintained market share position as #4 Canadian LP with 7.5% market share, up from 4.4% share in the pror year's period.
- Introduced Monjour, a new wellness brand offering high quality, high potency, CBD-forward products.
- Resumed shipping to Israel through Canndoc Ltd., shipping over 1,400 kilograms of dry flower in the quarter.
- Acquired Laurentian Organic Inc., a private Quebec-based producer of hash and craft cannabis.
- Increased its investment in Hyasynth Biologicals Inc.
“Our strong balance sheet and cash position will ensure that we are well-positioned to execute on our key growth initiatives for fiscal 2022. These include the expansion of our growing facility in Moncton to an annual capacity of 75,000 kilograms of flower from its current capacity of 55,000 kilograms, and the build out of our Centre of Excellence in collaboration with BAT,” Derrick West, the company’s CFO, said.
Photo: Courtesy of Benzinga
