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Organigram reported $247.2 million in gross revenue and $159.8 million in net revenue for fiscal year 2024, ended September 30, but a net loss of $45.4 million.
This represents an increase from $233.6 million in gross revenue for the previous fiscal year (which was 13 months), $161.6 million in net revenue, and a $248.6 million net loss. Organigram reports incurring $87.3 million in excise taxes in fiscal year 2024.
The company’s gross margins nearly doubled in the most recent fiscal year, from 16% to 30%, while operating expenses were down significantly.
The most significant growth in sales for Organigram in fiscal year 2024 were adult-use, recreational non-medical sales of cannabis flower and infused pre-rolls.
In that category, cannabis flower sales, net of excise duty, were $91.2 million, up from $82.1 million in the previous year. Vapes were $2.2 million, down from $3.8 million in 2023. Hash was relatively level at $11.3 million, compared to $11.2 million in 2023. Infused pre-rolls jumped significantly to $12.2 million from just $2.9 million the previous year. Edibles were $21.4 million, compared to $22.1 million in 2023. Ingestible oils and extracts were $4.7 million, up from $4.3 million.
On the medical use supply chain side, sales dropped from nearly $3 million in 2023 to $1.7 million in 2024, while sales of flower and oil on the international market dropped from $18.9 million in 2023 to $9.7 million in 2024. Wholesale and other sales were $5.4 million compared to $2.1 million in 2023.
Since Q4 2023, the amount of dried flower yield per plant in grams and flower harvested in kilograms has increased or stayed level, quarter over quarter.
Organigram’s net revenue in Q4 2024 was the highest the company has reported in the preceding eight quarters.
As of September 30, 2024, the company had unrestricted cash of $133,426, up from $51,757 at September 30, 2023. The company attributes the increase primarily to the proceeds from the follow-on British American Tobacco (BAT) investment and the offering of units that closed on April 2, 2024.
In December, following the end of the most recent fiscal reporting period, Organigram also acquired Motif which included a cash component of approximately $50 million and roughly $5 million in transaction costs. The funds to finance this acquisition were not drawn from the Jupiter Pool created by BAT.
The acquisition of Motif made Organigram the number-one LP in Canada in terms of market share. It also added two purpose-built facilities to its portfolio, focusing on cannabis extraction, processing, manufacturing, and distribution.
Organigram expects to close the third tranche from the follow-on BAT investment in the amount of $41.5 million on or about February 28, 2025.
“Fiscal 2024 was a transformative year where our entire team delivered on multiple fronts,” said Organigram’s CEO Beena Goldenberg. “We received significant funding from BAT when capital for the cannabis industry was scarce. We made smart, strategic investments, including into seed-based technology and automation, which is increasing efficiency. We have also expanded our international footprint through a $21 million investment in Sanity Group, a leading German cannabis company, as well as through several new supply agreements to provide products to patients in Australia and the UK. As we integrate recently-acquired Motif into the Organigram ecosystem, we head into Fiscal 2025 as Canada’s #1 LP and we are very excited for the next phase of our growth plans focused on efficiency, consumer-centric innovation, and international expansion.”
Organigram’s biggest brand, SHRED, brought in $225 million in annual retail sales as of the end of Q4 Fiscal 2024.
Organigram sells into four international medical supply markets: Australia, Germany, the UK, and Israel, and has completed an investment in a German cannabis leader, Sanity Group, to establish a foothold in the growing European cannabis market. The company has also completed strategic investments in two U.S.-based companies: OBX and Phylos.
Organigram also completed its EU-GMP audit in November 2024, and is awaiting the results.
Organigram is one of the companies mentioned in an ongoing investigation by the Israeli government into allegations of Canadian cannabis companies engaging in “product dumping” in the Israeli medical cannabis market. A ruling on that investigation is expected in 2025, says Organigram. The Israeli Ministry of Health, which regulates medical cannabis distribution in Israel, has said they oppose the Anti-Dumping Commissioner’s decision on the basis that it is biased, inconclusive, and harmful to patients in Israel.
A report of an independent registered public accounting firm, included in Ogranigram’s annual report, says the Moncton-based cannabis company has not maintained effective internal control over financial reporting as of September 30, 2024, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway (COSO.)
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