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.
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.
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.