On Tuesday, Cannabis producer Organigram Holdings Inc (NASDAQ:OGI) reported first-quarter 2025 gross sales of CA$66.8 million, up 19% year-over-year, beating the consensus of CA$65.4 million.
21% of harvests came from higher efficiency seed-based cultivation, up from 9% in the prior quarter.
Net revenues increased 17% to CA$42.73 million, primarily due to increased recreational cannabis sales, international sales and contributions from Motif sales.
The company adds that the integration of Motif is progressing as planned, with over CA$10 million in annual run-rate synergies expected to be realized within the next two years.
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Adjusted gross margin was CA$14.3 million, or 33% of net revenue, compared to CA$11.2 million, or 31%, a year ago. The increase is attributable to several factors, including lower cultivation and post-harvest costs, reduced inventory provisions, and sales mix.
Adjusted EBITDA was $1.4 million compared to $0.1 million in adjusted EBITDA in Q1 Fiscal 2024. The increase was primarily attributable to higher revenue and operational efficiency gains.
“This is an exciting time for Organigram as we kick off Fiscal 2025 as Canada’s largest recreational cannabis company by market share,” said CEO Beena Goldenberg. “Our strategic priorities for the fiscal year focus on integrating Motif to maximize operational synergies, continuing to expand our presence in international markets, and driving even more innovation—both in our product portfolio to delight our consumers, and also within our operations to enhance value for our shareholders.”
The cannabis company reported a net loss of CA$22.9 million compared to a net loss of CA$15.8 million a year ago, primarily attributable to a higher fair value loss recognized in relation to top-up-rights of BAT, which was partially offset by an increase in gross margin and fair value gain on other financial assets.
As of December 31, 2024, the company had cash of CA$71.2 million. On a pro forma basis, Organigram will have a cash position of approximately CA$113 million upon closing the final tranche of BAT’s follow-on investment.
Price Action: OGI stock is down 11% at $1.54 during the premarket session on last check Tuesday.
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