Organigram Holdings Inc. (NASDAQ:OGI) (TSX:OGI), the parent company of Organigram Inc., released its results for the second quarter ended February 28, 2022.
Key Financial Results for the Q2 Fiscal 2022
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Compared to the prior year, net revenue increased 117% to CA$31.8 million ($24.45 million), from CA$14.6 million in Q2 Fiscal 2021. The increase was primarily due to an increase in adult-use recreational revenue and international revenue, partly offset by lower average net selling price due to product mix and a decrease in medical revenue.
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Gross margin before fair value changes to biological assets, inventories sold, and other charges improved to CA$6.9 million from negative CA$16.5 million in Q2 Fiscal 2021 largely due to higher net revenue and lower cost of sales as described above.
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Q2 Fiscal 2022 adjusted EBITDA improved to positive CA$1.6 million compared to negative CA$7.8 million in Q2 Fiscal 2021, primarily due to the increase in adjusted gross margins, partially offset by the increase in SG&A expenses.
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Q2 Fiscal 2022 net loss was CA$4.0 million, compared to a net loss of CA$66.4 million in Q2 Fiscal 2021, the reduction in the net loss is primarily due to the higher sales and gross margins in the current quarter.
“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. We expect that leveraging these brands will allow us to continue to drive market share,” stated Beena Goldenberg, CEO.
Outlook
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Organigram currently expects Q3 Fiscal 2022 revenue to be higher than Q2 Fiscal 2022.
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In addition, the continuation of shipments to Canndoc in Israel and Cannatrek in Australia is expected to generate higher sequential revenue in Fiscal 2022 as compared to Fiscal 2021.
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The company also expects to realize additional revenue through the recent acquisition of Laurentian and will make growth-focused capital expenditures at Laurentian which have the potential to further increase EBITDA generation.
Photo: Courtesy of Jeff W on Unsplash
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