By Adriano Marchese
OrganiGram Holdings' loss widened and revenue growth missed expectations in the first fiscal quarter as the company integrates its acquisition of cannabis producer Motif Labs.
The Canadian licensed producer of cannabis on Tuesday posted a widened loss of 23 million Canadian dollars ($16.1 million) for the three months ended Dec. 31, compared with a loss of C$15.8 million in the comparable quarter a year ago.
OrganiGram noted that the widened loss is primarily attributable to a higher fair value loss recognized in relation to top-up-rights of British American Tobacco, an strategic investor in the company.
Adjusted earnings before interest, taxes, depreciation and amortization rose to C$1.4 million from C$136,000. According to FactSet, analysts expected a greater rise to C$3.7 million.
Net revenue grew by 17% to C$42.7 million, missing expectations of a rise to C$47.9 million. The growth was largely due to an increase in recreational cannabis and international sales.
OrganiGram said that integration of Motif Labs is progressing as planned, with over C$10 million in annual run-rate synergies expected to be realized within the next 24 months.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
February 11, 2025 06:33 ET (11:33 GMT)
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