Organigram Reports Fiscal 2023 Results¹
- Domestic share growth in several key categories continues to be driven by innovation excellence and industry-leading R&D.
- Organigram continues to take a leadership position in industry fighting THC mislabelling (inflation).
- Company fortifying itself with recently announced BAT-Jupiter $124.6 million private placement transaction strengthening balance sheet and setting the stage for long-term growth outside of Canada.
FISCAL 2023 HIGHLIGHTS
- At year-end, achieved the #2 position among Canadian licensed producers driven by success of growing pre-roll business2
- Held the #1 position in the milled flower, gummies, and hash categories²
- Held the #3 market position in Ontario, #3 in Quebec, and #1 in the Atlantic Canada²
- Held the #3 position in dried flower, the largest category of the Canadian cannabis market²
- Climbed from the #10 to the #3 position in pre-rolls between Q3 2023 and end of Q4 2023²
- Introduced 16 SKUs in Q4 Fiscal 2023 for a total of 143 SKUs in market
- Introduced ultra-high THC infused pre-rolls, launched tube-style pre-rolls, and launched first whole-flower-derived THCV products to Canadian market
- Completed expansion construction at Lac-Supérieur, with first harvest in December 2023
- Signed first UK supply agreement with 4C Labs Ltd. (“4C Labs”) to distribute medical cannabis to UK-based patients
- Signed first German supply agreement with Sanity Group GmbH (“Sanity Group”) to distribute medical cannabis to Germany-based patients
- Accelerated focus on vapes with strategic investment into Greentank for access to revolutionary vaporization hardware that solves consumer pain points and may increase perceived potency
- Made first US strategic investment into Phylos for exclusive access to high-THCV cultivars and to commence technical collaboration to augment Organigram’s growing and breeding methodologies
- Completed initial seed-based trials at the Moncton facility, accelerating the upcoming transition of a portion of grow rooms to seed-based production, a strategic advantage stemming from the Company’s investment in Phylos
- Shipped record $18.9 million in international exports in Fiscal 2023, up 25% from $15.1 million in Fiscal 2022
- Achieved meaningful shipped sales growth in several product categories in Fiscal 2023 compared to Fiscal 2022: gummies (100%), hash (113%), all pre-rolls (54%)
- Completed $29 million capex spend on facility enhancements to drive down production costs in Fiscal 2024 and meet consumer demand for craft cannabis and ready-to-consume products.
- Realized $4.3 million in savings during Fiscal 2023, with a further $10 million savings estimated for Fiscal 2024
TORONTO–(BUSINESS WIRE), December 19, 2023–Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), (the “Company” or “Organigram”), a leading licensed producer of cannabis, announced its results for the fourth quarter and thirteen months ended September 30, 2023 (“Q4 Fiscal 2023” or “Fiscal 2023”).
In Fiscal 2023, our continued focus on innovative products that address consumers’ evolving preferences toward convenience drove our growth across several ready-to-consume categories like pre-rolls and edibles, and we ended the year in the #2 market position which we held as of November 30th.. Our success in innovation is exemplified by being awarded KIND’s ‘Most Innovative Product’ for the second year in a row. We won in 2022 for Edison JOLTS and this year for our SHRED X Rip-Strip hash.
Beena Goldenberg, Chief Executive Officer
In Fiscal 2024 we expect improved margins from efficiencies tied to our completed facility upgrades and growth in higher margin categories such as craft flower and vapes, while the $124.6 million financial commitment from BAT expedites our plans for international growth.
