Organigram reports Q1 revenue C$36.5M, consensus C$28M

Q1 Adjusted EBITDA was C$0.1M vs. C$5.6M last year. The decline is primarily attributed to lower international shipments, and higher SG&A expenses. “We certainly kicked off fiscal 2Y024 with a bang”, said Beena Goldenberg, CEO. “By closing the first tranche of our $124.6M follow-on investment from BAT shortly after quarter end, we have removed a significant amount of risk from our business while enhancing the key competitive advantages that our team worked diligently to put into place in F23. We can now fully leverage our world-class facilities, market leadership in several categories, and cutting-edge research and development capabilities to increase Organigram’s reach both within the Canadian market and beyond.” “Our results for the first quarter of Fiscal 2024 demonstrate improvements on multiple fronts,” added CFO Greg Guyatt. “Our improved adjusted gross margin and Adjusted EBITDA on a sequential quarter-over-quarter basis were driven by the refinement of newly enhanced production processes for ready-to-consume products resulting from the $29M in facility enhancements we completed in FY23, the highly successful reintroduction of our patented Edison JOLTS to the market, and improved margin profiles in several product categories. In December 2023, we had a record breaking month in shipped recreational sales, stemming from consistent market share gains throughout Q1 FY24.”