Organigram Holdings (TSX: OGI) this morning reported its fiscal fourth quarter financial results, posting net revenues of $24.9 million. The company also posted a loss of $26.0 million for the three month period.
Revenues were up considerably on a quarter over quarter basis, climbing 22% from $20.3 million to $24.9 million. Recreational cannabis reportedly accounted for $22.9 million of this net revenue.
The firm was quick to highlight that it achieved 7% market share in the recreational market during the quarter, which has reportedly since grown to 7.9%. The problem, however, is that none of that matters when you post negative gross margins before fair value adjustments. Cost of sales for the quarter came in at $25.9 million, resulting in negative margins of $1.0 million.
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Things were no better from here, with the company recording SG&A expenses for the quarter of $13.6 million, further pushing the company into the red. Overall, Organigram posted a net loss of $26.0 million, along with an adjusted EBITDA loss of $4.8 million.
For the full fiscal year, Organigram saw net revenues of $79.2 million, and cost of sales of $103.6 million, resulting in negative gross margin for the fiscal year of $24.4 million. Total operating expenses meanwhile amounted to $63.4 million, including impairments of intangibles and certain property. Overall, Organigram posted a loss of $130.8 million for the full fiscal year.
Organigram Holdings last traded at $2.37 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.
