Organigram Reports Fiscal 2023 Financial Results
Organigram Holdings (NASDAQ: OGI) (TSX: OGI), one of Canada’s most prominent licensed cannabis producers, has disclosed its performance outcomes for the fourth quarter and the thirteen-month period concluding on September 30, 2023. The company also provided a comprehensive review of business operations for 2023, which included a follow-on investment of $124.6 million from British American Tobacco (BAT).
In fiscal 2023, Organigram Holdings demonstrated double-digit gains on the revenue topline, achieving a sum of $161.6 million, represents a 11% increase compared to the $145.8 million recorded in fiscal 2022. Along with the increase in revenues, gross margin also increased 20% from the $33.4 million reported in the previous fiscal year. Adjusted gross margin percentage stands at 25%, up from 23% in fiscal 2022.
On the adjusted EBITDA, Organigram registered $6.0 million in fiscal 2023, a material increase from the $3.5 million recorded in the preceding fiscal period. While adjusted EBITDA is not cash flow, it is standardized measure of a company’s financial performance for earnings before interest, taxes, depreciation, and amortization (EBITDA) and extraordinary one-time items. The increase in this metric can be construed as a positive trend in the company’s financial performance.
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Closing the fiscal year with a balance sheet in good standing, Organigram reported $51.8 million in cash and negligible debt. Although this was a decrease from the $125.4 million reported at the end of August 31, 2022. The reduction is predominantly attributed to cash utilization in operating activities amounting to $38.8 million, capital expenditures of $29.1 million, and investments of $10.5 million (inclusive of transaction costs) in Greentank and Phylos.
Despite significant losses overall—chiming at over $248 million for the year—a substantial follow-on investment of $124.6 million from BAT helped keep the treasury is respectable shape.
Of this amount, $83.1 million is earmarked for the establishment of Jupiter, a strategic investment pool strategically designed to broaden Organigram’s global presence and leverage emerging international growth opportunities. The remaining $41.5 million is allocated for general corporate purposes, contingent upon shareholder approval.
Organigram and BAT are collaboratively advancing their partnership through the PDC, focusing on pioneering technologies within the edible, vape, and beverage realms. Simultaneously, PDC is actively engaged in conducting clinical pharmacokinetic studies. These studies aim to furnish Organigram with valuable data, enabling the company to make substantiated claims regarding the onset and half-life of these products.
Please view the press release here for a full rundown Q4 financial highlights.
