Organigram Reported Q4 Revenue Jumped 411% and Positive Adjusted EBITDA For 2019
Organigram Holdings (TSX: OGI) (NASDAQ: OGI) announced this morning its financial results for the fourth quarter and full-year fiscal 2019. The company reported a year over year increase in net revenue of 547% which came in at $80.4 million. Organigram’s full-year 2018 revenue was $12.4 million.
Fourth-quarter net revenue dropped from $24.75 million in the previous quarter to $16.2 million in Q4 2019. Year over year Q4 net revenue rose 411%.
For 2019, Organigram was able to report positive adjusted EBITDA of $19.9 million, much improved compared to the adjusted EBITDA loss of $1 million posted in 2018.
Q4’s adjusted EBITDA was a different story coming in at negative $7.9 million. In the previous quarter, Organigram posted positive adjusted EBITDA of $7.7 million.
“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. In 2019, we increased staffing and capacity to meet forecasted demand and maintain inventory in the market. Industry structural issues have challenged supply and demand dynamics in the short-term but we believe the growth opportunity in the Canadian cannabis market remains intact,” stated Organigram CEO Greg Engel.
The company’s gross margin for the fourth quarter was negative $11.1 million and $48.5 million for the full-year 2019.
Organigram’s net loss for Q4 and full-year 2019 amounted to $22.4 million and $9.5 million respectively. A sharp decline compared to net income of and $18 million and $22 million in 2018.
The company’s cash position at the end of fiscal 2019 was $47.9 million with current liabilities of $43.8 million.
“As we were one of the first success stories to supply the market in the early days of legalization, we have had visibility for some time now on ultimate sell-through to consumers and have adapted our production mix and product strategy to align with our understanding of emerging consumer preferences. We have great conviction in our strategy and ability to onboard the new retail store openings and to launch a portfolio of edible and derivative products appealing to adult consumers. With our state-of-the-art indoor facility and leading cultivation practices, strong brand equity, in-house expertise and strategic partnerships and a focus on cost management, we are well-positioned for the long term,” added Engel.
Shares of Organigram closed trading today at $3.39 per share, down 3.14% on the day.
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