Organigram Holdings (TSX: OGI) (NASDAQ: OGI) announced preliminary fourth quarter revenues this evening, providing guidance for revenues of $16.3 million for the fourth quarter. On a quarter over quarter basis revenues have declined by 34.14%, from $24.8 million in the third quarter. The firm reported that it expects to report negative adjusted EBITDA as a result.
The total revenue figure provided by Organigram represents $20.0 million in net sales, plus returns and pricing adjustments to the tune of $3.7 million. The firm placed blame on the rollout of provincial distribution for adult use cannabis as the underlying reason for poor sales, while highlighting Ontario’s retail network in particular. The firm also placed blame on “increased industry supply” for its lack of sales growth.
The bright side, however is that the firm indicated it has seen sequential improvement in its cost per gram of cultivation and yield, however no hard figures were provided.
Organigram expects to report a cash position of $47.9 million including short term investments, while having $49.6 million in current and long term debt. Subsequent to the end of the quarter, the firm has also drawn $15.0 million from a $115 million term loan. That loan has $50 million remaining of available credit.
In terms of the current quarter, Organigram provided minimal color, indicating that they have shipped more than they had by this point in the previous quarter.
Organigram is to report full fourth quarter financials on November 25 before market open. The firm closed today’s session at $4.46 on the TSX.
Information for this briefing was found via Sedar and Organigram Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.