Organigram Holdings (TSX: OGI) has finally done it. The company has finally posted a positive gross margin quarter, although just barely. The firm this morning reported its fiscal first quarter results for 2022, posting net revenue of $30.4 million.
The quarterly results were a substantial improvement on a quarter over quarter basis, with sales rising 22.2% on a quarter over quarter basis from $24.9 million in the fourth quarter, while also taking a spot as the #4 market share position in the Canadian cannabis sector. Gross margin before adjustments came in at $2.5 million, the first positive gross margin quarter exhibited by the company in well over a year – and all it took was the highest net revenue quarter in the firms history.
This move to positive gross margin however was not enough to get the company into the black, with the firm reporting operating expenses of $14.3 million, lead by G&A of $8.0 million, resulting in a loss from operations of $13.7 million.
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This loss however was given a boost from other income, with the company reporting a $12.7 million boost from the change in fair value of derivative liabilities, with the company posting an overall net loss of just $1.3 million as a result. Adjusted EBITDA meanwhile came in at a loss of $1.9 million.
Cash over the quarter meanwhile climbed to $99.7 million from $55.4 million, while short term investments halved from $128.2 million to $68.3 million.
Looking forward, the company expects second quarter revenues to be “significantly higher” than Q2 2021, wherein the firm reported net revenues of $14.6 million. Gross margin meanwhile is expected to improve sequentially.
Organigram Holdings last traded at $2.19 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.
