Organigram Holdings (OGI) Reports Q1 Loss of $0.17 on Revenues of $19.3M

Organigram Holdings (NASDAQ: OGI) reported Q1 EPS of ($0.17), versus ($0.01) reported last year. Revenue for the quarter came in at $19.3 million, versus $25.2 million reported last year.

• Q1 2021 Canadian adult-use recreational gross and net revenue grew 42% and 30%, respectively, to $22.5 million and $16.8 million, respectively, from Q1 2020
• Q1 2021 Canadian adult-use recreational gross and net revenue grew sequentially 14% and 11%, respectively, from Q4 2020
• Generated positive cash flow from operations of $0.3 million in Q1 2021, representing the second quarter of the last three quarters with positive cash flow from operations
• Ended the quarter with $134 million1 in cash and short-term investments; on December 1, 2020, made a $55 million repayment on term loan, resulting in pro-forma cash and short-term investments of $79 million1 with $60 million owing on its term loan
• Subsequent to quarter-end, began increasing production and using additional existing capacity to meet increased consumer demand and capture more sales opportunities and economies of scale in the future
• Launched 53 new stock-keeping units (SKUs) since July 2020 as part of the Company’s product portfolio revitalization, including three new higher margin Edison dried flower strains; up to 14 more SKUs still expected to launch by the end of Q2 Fiscal 2021
• SHRED was the #1 most-searched brand on the Ontario Cannabis Store website for the months of November and December 2020 and Edison was among the most-searched brands in November 2020
• On January 11, 2021, announced the appointment of Marni Wieshofer, formerly the CFO and EVP, Corporate Development at Lions Gate Entertainment Company, to the Company’s Board of Directors, Organigram’s first U.S. domiciled Board member with deep experience in U.S. and international M&A

“We are pleased with our double-digit sales growth in the Canadian adult-use recreational market this past quarter as it reflects the success of many of our new product launches, particularly in the dried flower value segment,” said Greg Engel, CEO. “Now we look forward to our new higher margin Edison dried flower offerings contributing substantially to overall revenue with even more new products to come in the next few quarters. We believe our product portfolio revitalization combined with additional resources to ramp up production and achieve greater economies of scale as well as our relentless focus on increased automation and cost efficiency opportunities position us well to generate further top-line growth and significantly improve gross margins.”

For earnings history and earnings-related data on Organigram Holdings (OGI) click here.

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