Q3 2024 OrganiGram Holdings Inc Earnings Call Transcript
Key Points
- OrganiGram Holdings Inc (OGI) achieved a 25% year-over-year growth in its Canadian recreational business for Q3 fiscal 2024.
- The company has maintained a market share of over 7% for eight consecutive months as of the end of July.
- OrganiGram Holdings Inc (OGI) has expanded its international footprint with a $21 million investment in German cannabis leader, Sanity Group.
- The company reported a record yield of 185 grams per plant, supported by changes in cultivation processes and strategic investments.
- OrganiGram Holdings Inc (OGI) returned to generating adjusted EBITDA in Q3 fiscal 2024, reporting $3.5 million compared to negative $2.9 million in the same prior year period.
- The Canadian market remains highly competitive with 153 LPs having at least $1 million in sales, contributing to market share erosion.
- There is ongoing price compression in the edibles segment, impacting overall margins.
- The company is still awaiting EU GMP certification, which is expected to be received in early 2025, delaying potential international revenue growth.
- Operational KPIs such as yield and potency are subject to fluctuations due to changes in cultivar mix, impacting margin stability.
- Despite significant investments, the company faces challenges in ramping up production to meet the growing demand in international markets like Germany.
Good morning. My name is Kayla, and I will be your conference operator today. At this time, I would like to welcome everyone to the Organigram Holdings third quarter fiscal 2024 earnings conference call. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)
Thank you. Max Schwartz, you may begin your conference.
Thank you very much. And good morning, everyone, and thank you for joining us today. As a reminder, this conference call is being recorded and a recording will be available on Organigram website 24 hours after today's call.
Listeners should be aware that today's call will include estimates and other forward-looking information from which the company's actual results could differ. Please review the cautionary language in our press release dated August 13, 2024, on various factors, assumptions, and risks that could cause our actual results to differ.
Further reference will be made to certain non-IFRS measures during
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