Cannabis Company Organigram Holdings Inc. OGI OGI announced his results for the first quarter ended November 30, 2021.
“Our rrecord results in the first quarter of fiscal 2022 demonstrate the success of our strategy to create innovative, high-quality products that align with the evolving preferences of different cannabis consumer segments,” Beena Goldenberg, CEO of the company, noted. “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 throughout the year.
First Quarter 2022 Financial Highlights
- Compared to the previous year, net revenues increased 57% to $30.4 million, of $19.3 million in the first quarter of fiscal 2021, representing a highest quarterly net sales in company history.
- Cost of sales increased 20% to $27.9 million year over year, primarily due to increased sales volume in the adult recreational market.
- Gross margin before changes in fair value of biological assets, inventories sold, and other expenses, upgraded to $2.5 million minus $3.8 million in the prior year period.
- Gross margin increased to a positive result compared to the first quarter of 2021 gross negative.
- Adjusted gross margin was $5.5 millionor 18% of net revenue, compared to $1.9 million, or 10%, in the corresponding quarter of 2021.
- Selling, general and administrative expenses increased 21% to $12.6 million of $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 millioncompared 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 and recent operational milestones
- Launch of Edison JOLTS, an ingestible extract tablet, which maintains its position as the best seller in its category.
- Launched 13 new Stock Keeping Units (SKUs) for a total of 49 SKUs available on the market, covering key categories.
- Maintained market share position as #4 Canadian LP with 7.5% market share, up from 4.4% for the prior year period.
- Launch of Monjour, a new wellness brand featuring high-quality, high-potency CBD products.
- Resuming shipments to Israel via Canndoc Ltd., shipping over 1,400 kilograms of dried flowers in the quarter.
- Acquisition of Laurentian Organic Inc., a private Quebec producer of hash and artisanal cannabis.
- Increased investment in Hyasynth Biologicals Inc.
“Our strong balance sheet and cash position will position us well to execute on our key growth initiatives for fiscal 2022. These include expanding our cultivation facility in Moncton to an annual capacity of 75,000 kilograms of flowers compared to its current capacity. of 55,000 kilograms and the construction of our center of excellence in collaboration with BAT”, Derrick West, Chief Financial Officer of the companynoted.
Photo: Courtesy of Benzinga
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