Organigram Holdings Inc., a leading licensed producer of cannabis, announced its results for the third quarter ended May 31, 2023 (“Q3 Fiscal 2023”). All financial information in this press release is expressed in thousands of Canadian dollars (“$”), except for references to $ millions.
“During the quarter, we continued to demonstrate our responsible leadership in the Canadian cannabis industry,” said Beena Goldenberg, Chief Executive Officer. “We focused on the ongoing execution of our strategy of sustainable long-term growth by delivering disruptive consumer-focused innovations, while driving costs out of our operation and improving productivity. We are very pleased with the growth of our Canadian recreational business and our outlook moving into next year remains positive with the foundation now in place to deliver continued growth.”
Highlights
- Recreational net revenue was $92.5 million for the nine months ended May 31, 2023, an increase of $8.0 million over the same prior-year period
- Increased sequential net revenue from Canadian recreational business by 7% vs. Q2 driven by continued success in hash and rebound in flower
- Organigram regained the #3 position in May and held it through June with 6.7% national market share1
- Held the #1 position in milled flower, the #1 position in concentrates, and moved into the #2 position in gummies nationally in May1
- International sales for the first nine months of fiscal 2023 of $18.4 million exceeded the $9.5 million realized for the same prior-year period by 94%
- Completed first U.S. investment in Phylos Bioscience Inc. (“Phylos”) to commercialize THCV and transition a portion of production capacity to more cost-effective and consistent seed-based production over time
- Completed investment in Green Tank Technologies Corp. (“Greentank”) for initial exclusive access to new vapour heating technology
- Product Development Collaboration with BAT moving rapidly toward product commercialization
- SHRED brand is one of the largest cannabis brands in the Canadian market approaching $190 million in retail sales in the last 12-months2
- Successfully launched 28 SKUs in the quarter for a total of 127 in market
- Completed ramp up of SHRED X Rip Strip production and distribution to meet strong consumer demand
- Announced supply agreement with Sanity Group GmbH (“Sanity Group”) to supply medical cannabis to the promising German market
- Strong balance sheet with $75 million in cash and negligible debt
About Organigram Holdings Inc.
Organigram Holdings Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly-owned subsidiaries include Organigram Inc. and Laurentian Organic Inc. licensed producers of cannabis and cannabis-derived products in Canada, and The Edibles and Infusions Corporation, a licensed manufacturer of cannabis-infused edibles in Canada. Organigram is focused on producing high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend the Company’s global footprint. Organigram has also developed a portfolio of legal adult-use recreational cannabis brands, including Edison, Holy Mountain, Big Bag O’ Buds, SHRED, Monjour and Trailblazer. Organigram operates facilities in Moncton, New Brunswick and Lac-Supérieur, Québec, with a dedicated manufacturing facility in Winnipeg, Manitoba. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).
