Organigram Reports Fourth Quarter and Fiscal 2024 Results
- Fiscal 2024 net revenue of $159.8 million
- 17.6% year-over-year growth in Organigram’s recreational shipped sales in Fiscal 2024
- Q4 Fiscal 2024 adjusted gross margin¹ of 37%
- Q4 Fiscal 2024 adjusted EBITDA² of $5.9 million or 13% of net revenue
- Q4 Fiscal 2024 cash flow from operations of $8.9 million
- Became Canada’s largest cannabis company by market share following the acquisition of Motif Labs subsequent to year end
TORONTO–(BUSINESS WIRE), 12/18/24–Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), (the “Company” or “Organigram”), a leading licensed producer (“LP”) of cannabis, announced its results for the fourth quarter and twelve months ended September 30, 2024 (“Q4 Fiscal 2024” or “Fiscal 2024”). All financial information in this press release is expressed in Canadian dollars (“$”).
Comparable Periods: The Company’s results for Q4 Fiscal 2024 and Fiscal 2024 reflect the three-month and 12-month periods ended September 30, 2024. The Company’s change in year-end effected in fiscal year 2023 (“Fiscal 2023”) resulted in its reporting periods of for the fourth quarter of 2023 and Fiscal 2023 having 4 months and 13 months, respectively. For comparative purposes and to more accurately reflect period-over-period performance, the Company’s financial results and period-over-period comparisons are presented in this news release for the unaudited and unreviewed three-month period ended September 30, 2023 (“Comparative Q4 Fiscal 2023”), and the unaudited and unreviewed 12-month period ended September 30, 2023 (“Comparative Fiscal 2023”), unless otherwise indicated.
FOURTH QUARTER AND FISCAL 2024 HIGHLIGHTS
- Fiscal 2024 adjusted EBITDA¹ increased 55% compared to Comparative Fiscal 2023.
- Q4 Fiscal 2024 net revenue increased 10% compared to Q3 Fiscal 2024 and 22% versus Comparative Q4 2023.
- Q4 Fiscal 2024 adjusted EBITDA¹ increased to $5.9 million, from $3.5 million in Q3 Fiscal 2024, and from $0.1 million in Comparative Q4 Fiscal 2023.
- Moved from the #2 spot in the Canadian market as of year-end3 to the #1 LP by market share post-acquisition of Motif Labs Ltd (“Motif”) subsequent to year-end4.
- Achieved adjusted gross margin2 of 37% in Q4 Fiscal 2024 due to efficiency increases across cultivation, manufacturing, and distribution.
- Realized $9.1 million in annual cost savings through extensive efficiency initiatives in Fiscal 2024.
- Achieved sequential quarterly growth in international sales throughout Fiscal 2024 and increased international customer base from five to eight supply partners in Fiscal 2024.
- Completed $21 million strategic investment in German cannabis leader Sanity Group GmbH (“Sanity Group”), and expanded strategic investments in the US, leveraging dedicated Jupiter investment pool.
- EU-GMP (European Union good manufacturing practice) audit completed at the Company’s Moncton facility in November, 2024, and awaiting certification, which is expected to support growing demand from international markets and contribute to increases in international revenue with strong margins.
- In Fiscal 2024, the Company enhanced its balance sheet by closing two tranches of the $124.6 million follow-on investment by BT DE Investments Inc., a wholly-owned subsidiary of British American Tobacco p.l.c. (“BAT”) for gross proceeds of $83.1 million, with the final $41.5 million tranche expected to close in February 2025. Separately, the Company completed a $28.8 million overnight marketed offering in April 2024.
“Fiscal 2024 was a transformative year where our entire team delivered on multiple fronts,” said Beena Goldenberg, Chief Executive Officer. “We received significant funding from BAT when capital for the cannabis industry was scarce. We made smart, strategic investments, including into seed-based technology and automation, which is increasing efficiency. We have also expanded our international footprint through a $21 million investment in Sanity Group, a leading German cannabis company, as well as through several new supply agreements to provide products to patients in Australia and the UK.”
As we integrate recently-acquired Motif into the Organigram ecosystem, we head into Fiscal 2025 as Canada’s #1 LP and we are very excited for the next phase of our growth plans focused on efficiency, consumer-centric innovation, and international expansion.
Beena Goldenberg,CEO
