Cannabis producer Organigram Holdings Inc. (NASDAQ:OGI) (TSX:OGI) announced its financial results on Tuesday for the third quarter ended June 30, 2024, revealing net revenue increased 25% year-over-year to CA$41.1 million ($29.9 million).
Beena Goldenberg, the company's CEO, praised the revenue milestone. "We are pleased to report a strong third quarter, highlighted by a 25% year-over-year increase in net revenue, and a significant improvement in adjusted EBITDA", she stated.
In May, Organigram announced its second international medical cannabis customer in the UK, Avida Medical, a full-service medical cannabis and special medicines manufacturing business.
In June, the company announced a strategic investment aimed at expanding its presence in Germany, one of the burgeoning European cannabis markets.
The Toronto-based company reported that it will utilize proceeds from its Jupiter strategic investment pool and invest €14 million ($15 million) initially. The sum includes €11.5 million via an unsecured convertible note and €2.5 million to purchase equity interests from existing Sanity Group founders and shareholders providing Organigram with a minority stake in Berlin-based cannabis company Sanity Group GmbH.
Additionally, the company said it will advance another €3 million as a second tranche of the unsecured convertible note for future opportunities to be pursued by Sanity subject to the satisfaction of certain conditions.
"Our strategic investments and partnerships, both domestically and internationally, have positioned us for growth and diversification, particularly in the European market with our investment in Sanity Group," Goldenberg said. "Furthermore, the preliminary results from our landmark PK study on our latest patent-pending nanoemulsion technology demonstrate our ongoing commitment to innovation and expanding our product offerings. I continue to be very proud of our dedicated team for their hard work and contributions to these achievements."
Read Also: Organigram Reports 262% Higher Quarterly Net Loss YoY, Makes Progress In International Markets
Q3 2024 Financial Highlights
- Gross margin before fair value changes to biological assets and inventories sold totaled CA$13.9 million, representing a 2700% year-over-year increase.
- Selling, general and administrative expenses amounted to CA$14.8 million, down from CA$19 million in the third quarter of 2023.
- Net income amounted to CA$2.8 million, compared to a net loss of CA$213.5 million in the prior year's period.
- Adjusted EBITDA came in positive at CA$3.5 million, compared to a negative adjusted EBITDA of CA$2.9 million in the same quarter of fiscal 2023.
- Net cash used by operating activities was CA$0.2 million, compared to CA$14.8 million cash used in the prior year's period.
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OGI Price Action
Organigram's shares traded 7.64% higher at $1.55 per share during the pre-market session on Tuesday morning.
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