Organigram Posts Positive Adjusted EBITDA For 2019

Organigram Holdings Inc. OGI OGI posted its financial results for the fourth quarter and fiscal 2019, reporting net revenue of $80.4 million for the year, up by 547% from $12.4 million in 2018.

For the fourth quarter, the company disclosed net revenue of $16.3 million, up by 411% from the same quarter of the prior year.

For 2019, Organigram reported a positive adjusted EBITDA of $19.9 million, which compares to a negative adjusted EBITDA of $1 million in 2018.

The company posted a net loss for the fiscal year of $9.5 million, or a loss of 7 cents per share, compared to a net income of $22.1 million or 17 cents per share in the prior year.

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Organigram expects to generate a higher net revenue in the first quarter than in thew fourth quarter on increased sales to provinces and higher wholesale revenue.

Among important milestones achieved in the previous period, the company highlighted 70% completion of Moncton Campus facility expansion.

“Our 2019 results reflected a successful year for Organigram. Not only did we report strong top-line growth and establish an enviable national market share position in Canada, we generated positive adjusted EBITDA - one of the key measures we use to evaluate our performance,” CEO Greg Engel said in a statement. “In 2019, we increased staffing and capacity to meet forecasted demand and maintain inventory in the market.”

Organigram’s stock traded 3% lower to $2.57 per share in Monday’s pre-market session.