Continued growth in net revenue and increased market share
MONCTON, New Brunswick, November 23, 2021–(BUSINESS WIRE)–Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (together, the “Company” or “Organigram”), a leading licensed producer of cannabis, announced its results for the fourth quarter ended August 31, 2021 (“Q4 Fiscal 2021”).
The results in Q4 Fiscal 2021 demonstrate the momentum we have achieved from our efforts to lead innovation and increase efficiencies. In the quarter, we introduced exciting new products that were embraced by consumers and we achieved higher crop yields at a lower cost. We are particularly pleased with our market share gains in the quarter to become a #4 LP and will build on these successes into Fiscal 2022.
We are excited for what Fiscal 2022 holds for Organigram. Looking ahead, we expect to continue our momentum as we maintain our focus on increased points of distribution, bringing new, impactful and innovative products such as Edison Jolts, SHRED and SHRED’ems to market, and improve our ability to fulfill the growing demand for our products.
* Adjusted gross margin, adjusted gross margin % and adjusted EBITDA are non-IFRS financial measures not defined by and do not have any standardized meaning under IFRS; please refer to the Company’s Q4 Fiscal 2021 MD&A for definitions and a reconciliation to IFRS.
** Excluding non-cash share-based compensation.
We move into Fiscal 2022 with a robust balance sheet that provides us with the ability to fund important growth initiatives such as the CoE we have launched with BAT. This will allow us to continue our advances in product development and plant science and drive revenue growth. We will also continue to invest in our facilities to create economies of scale and cost efficiencies that will further improve our gross margin profile.
Key Financial Results for the Fourth Quarter Fiscal 2021
Canadian Recreational Market
Launch of Cannabis Innovators Panel
SHRED’ems, cannabis-infused gummies
Edison JOLTS high potency THC lozenges
Monjour CBD-forward wellness brand
Research and Product Development
Centre of Excellence (“CoE”)
Plant Science, Breeding and Genomics R&D in Moncton
Adjusted gross margins
Liquidity and Capital Resources
Outstanding basic and fully diluted share count as at November 19, 2021 is as follows:
Fourth Quarter Fiscal 2021 Conference Call
The Company will host a conference call to discuss its results with details as follows:
Date: November 23, 2021
Time: 8:00am Eastern Time
To register for the conference call, please use this link:
To ensure you are connected for the full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. Registration is open through the live call.
To access the webcast:
A replay of the webcast will be available within 24 hours after the conclusion of the call at https://www.organigram.ca/investors and will be archived for a period of 90 days following the call.
Non-IFRS Financial Measures
This news release refers to certain financial performance measures (including adjusted gross margin and adjusted EBITDA) that are not defined by and do not have a standardized meaning under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. Non-IFRS financial measures are used by management to assess the financial and operational performance of the Company. The Company believes that these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and prospects in a similar manner to the Company’s management. As there are no standardized methods of calculating these non-IFRS measures, the Company’s approaches may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the Company’s Q4 Fiscal 2021 MD&A for definitions and, in the case of adjusted EBITDA, a reconciliation to IFRS amounts.
About Organigram Holdings Inc.
Organigram Holdings Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiaries include: Organigram Inc., a licensed producer of cannabis and cannabis-derived products in Canada and The Edibles and Infusions Corporation, a licensed manufacturer of cannabis-infused soft chews in Canada.
Organigram is focused on producing high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend the Company’s global footprint. Organigram has also developed a portfolio of legal adult use recreational cannabis brands including The Edison Cannabis Company, Indi, Bag o’ Buds, SHRED and Trailblazer. Organigram’s facility is located in Moncton, New Brunswick with another manufacturing facility in Winnipeg, Manitoba. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).
1 Source: Hifyre data, Q3 F21 vs. Q4 F21 and Oct 2021
2 Source: OCS e-commerce data, Nov 2020 to Oct 2021
3 Source: Hifyre data, Sept 12-Nov 6, 2021
4 Source: Hifyre data, Nov 17, 2021
5 Adjusted gross margin is a non-IFRS financial measure not defined by and does not have any standardized meaning under IFRS; please refer to the Company’s Q4 2021 MD&A for definitions and a reconciliation to IFRS.
6 Adjusted EBITDA is a non-IFRS financial measure not defined by and does not have any standardized meaning under IFRS; please refer to the Company’s Q4 2021 MD&A for definitions and a reconciliation to IFRS.
7 Without limiting the generality of risk factor disclosures referenced in the “Risk Factors” section of the Company’s Q4 Fiscal 2021 MD&A, the expectations concerning revenue, adjusted gross margins and SG&A are based on the following general assumptions: consistency of revenue experience with indications of first quarter performance to date, consistency of ordering and return patterns or other factors with prior periods and no material change in legal regulation, market factors or general economic conditions. The Company disclaims any obligation to update any of the forward-looking information except as required by applicable law. See cautionary statement in the “Introduction” section at the beginning of the Company’s Q4 Fiscal 2021 MD&A.
8 The forward-looking estimate of costs is based on a number of material factors and assumptions. Please see the cautionary statement in this press release and in the Company’s Q4 Fiscal 2021 MD&A.
Original press release