Organigram Revenue Grows 88% YoY, Provides Outlook

Organigram Holdings Inc. OGI OGI released results for the third quarter ended May 31, 2022, revealing net revenue increased 88% to $38.1 million, from $20.3 million in Q3 Fiscal 2021.

Q3 Fiscal 2022 Financial Highlights

  • Q3 Fiscal 2022 cost of sales increased to $29.4 million, from $23.4 million in Q2 Fiscal 2021, primarily as a result of the increase in sales volume in the adult-use recreational market.

  • Gross margin before fair value changes to biological assets, inventories sold, and other charges improved to $8.7 million from negative $3.1 million in Q3 Fiscal 2021 largely due to higher net revenue, reduction in inventory provisions and unabsorbed overhead costs.

  • Adjusted gross margin was $9.3 million, or 24% of net revenue, compared to negative $0.7 million, or -4%, in Q3 Fiscal 2021. This was largely due to the higher overall sales volumes combined with lower cost of production.

  • Adjusted EBITDA was $600,000 compared to negative $9.2 million in Q3 Fiscal 2021.

  • Net loss was $2.8 million, compared to a net loss of $4.0 million in Q3 Fiscal 2021, the decrease in the net loss is a result of higher gross margin, lower inventory provisions and lower financing costs.

“We are pleased to see continued strength in our recreational business with our increasing market share. We achieved record net revenue results which we expect to surpass again in Q4 on the strength of new product listings, increased retail sales momentum and international shipments,” stated Beena Goldenberg, CEO.

“We have built an enduring brand with SHRED that has proven to attract consumers across multiple product categories. This market strength is bolstered by introducing new SKUs in the derivative space, including Edison JOLTS, which are now available in three flavors, Edison live resin vapes, Tremblant hash, and Monjour soft chews in the wellness segment."

On May 31, 2022, the company had unrestricted cash and short-term investments balance of $127 million compared to $184 million at August 31, 2021.


Organigram currently expects Q4 Fiscal 2022 revenue to be higher than Q3 Fiscal 2022. This expectation is largely due to ongoing sales momentum, stronger forecasted market growth, the company's expanded product line in multiple segments, greater capacity to meet demand at the Moncton Campus, increased throughput at the Winnipeg facility, contributions from the Lac-Supérieur facility and increased revenue from international shipments.

The company expects to see a sequential improvement in adjusted gross margins in Q4 Fiscal 2022 and has put measures in place that it expects will further improve margins over time.

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Organigram Q2 Fiscal 2022 Revenue Grows 117% YoY Primaraly Because Of This


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