OrganiGram (OGI) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.01. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -200.00%. A quarter ago, it was expected that this cannabis producer would post a loss of $0.03 per share when it actually produced a loss of $0.05, delivering a surprise of -66.67%.Over the last four quarters, the company h ...

OrganiGram (OGI) Q3 2025 Earnings Call August 13, 2025 08:00 AM ET Speaker0Good morning. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Organigram Global Third Quarter Fiscal twenty twenty five Earnings Conference Call. After the speakers' remarks, there will be a question and answer session. We ask that you please limit yourself to one question and one follow-up question.You may re queue if you have any further questions. Thank you. Ma ...

This document is current as of June 30, 2025, except where otherwise stated. The information contained in this presentation is provided by Organigram Global Inc. ("Organigram" or the "Company") for informational purposes only and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to issue, securities of Organigram or other financial products. No part of this presentation shall form the basis or be relied upon in connection with any contract, commitment or investment d ...

Core Viewpoint - OrganiGram reported a quarterly loss of $0.05 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.03, marking a significant earnings surprise of -66.67% [1][2] Financial Performance - OrganiGram's revenues for the quarter ended March 2025 were $45.69 million, exceeding the Zacks Consensus Estimate by 8.09% and showing a year-over-year increase from $27.91 million [2] - Over the last four quarters, the company has surpassed consensus revenue estimates three times [2] Stock Performance and Outlook - OrganiGram shares have declined approximately 26.7% since the beginning of the year, contrasting with the S&P 500's decline of -3.8% [3] - The company's earnings outlook is currently unfavorable, leading to a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Future Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $45.73 million, and for the current fiscal year, it is -$0.16 on revenues of $166.74 million [7] Industry Context - The Medical - Products industry, to which OrganiGram belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Company Performance - OrganiGram reported a quarterly loss of $0.13 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.03, representing an earnings surprise of -333.33% [1] - The company posted revenues of $29.76 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 29.59%, compared to revenues of $27.91 million a year ago [2] - Over the last four quarters, OrganiGram has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [2] Stock Outlook - OrganiGram shares have declined approximately 26.7% since the beginning of the year, while the S&P 500 has decreased by -3.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $45.73 million, and for the current fiscal year, it is -$0.16 on revenues of $166.74 million [7] - The estimate revisions trend for OrganiGram is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical - Products industry, to which OrganiGram belongs, is currently in the bottom 33% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact OrganiGram's stock performance [5]

INTRODUCTION This Management's Discussion and Analysis dated May 12, 2025 (this "MD&A"), should be read in conjunction with the unaudited condensed consolidated interim financial statements (the "Interim Financial Statements") of Organigram Global Inc. (formerly Organigram Holdings Inc.) (together with its subsidiaries, the "Company", "Organigram", "we", "us", or "our") for the three and six months ended March 31, 2025 ("Q2 Fiscal 2025"), and the audited annual consolidated financial statements for the year ...

Group 1 - Alan Brochstein is a pioneer in the cannabis investment sector, having focused exclusively on this industry since 2007 [1] - He founded AB Analytical Services to provide independent consulting to registered investment advisors and has been managing partner of New Cannabis Ventures since 2015, which offers financial information in the cannabis industry [1] - Alan has been leading the investing group 420 Investor since 2013, which focuses on publicly-traded cannabis stocks and moved to Seeking Alpha in 2023 [2] Group 2 - The 420 Investor group covers 23 cannabis stocks, providing investment news, earnings report previews, and post-report analyses [2] - Features of the group include 2 model portfolios, 10 weekly videos with chart analysis, 3 weekly summary pieces, a monthly newsletter, and a chat service for questions [2] - A sub-service called The Big Picture is offered to help investors stay updated on the cannabis sector [2]

Financial Data and Key Metrics Changes - The company reported a net revenue increase of 17% to $42.7 million compared to Q1 of the previous year, driven by growth in flagship brands SHRED and BOXHOT [32][34] - Adjusted gross margin increased to $14.3 million or 33%, up from 31% in the prior year, attributed to increased international sales and operational efficiencies [34] - The net loss for the quarter was $23 million compared to a net loss of $15.8 million in Q1 fiscal 2024, with adjustments indicating a net loss of $4.1 million when excluding fair value losses [40][41] Business Line Data and Key Metrics Changes - The recreational business grew by 15%, with significant contributions from both core and newly acquired product lines [32][33] - The company expanded its national market share by 500 basis points year-over-year, with notable growth in vapes and pre-rolls, where it achieved the number one position [11][12] - Supporting brands like Big Bag O' Buds and Debunk saw impressive growth, doubling their market share compared to Q1 last year [10][11] Market Data and Key Metrics Changes - The Canadian cannabis industry grew by 7.7% year-over-year in Q1, driven by strong demand in pre-rolls and vapes [11] - International sales reached $3.3 million, reflecting a 2.3 times year-over-year increase [34] - The company anticipates continued growth in international sales throughout fiscal 2025, supported by strategic investments and partnerships [30] Company Strategy and Development Direction - The integration of the Motif acquisition is a key focus, with expected operational synergies of $10 million over 24 months [22][38] - The company is investing in seed-based cultivation to enhance efficiency and reduce costs, with plans to increase flower output significantly [20][25] - International expansion remains a priority, particularly in the German market, with a $21 million investment in Sanity Group to capitalize on growth opportunities [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving operational efficiencies and market position improvements, anticipating a stabilization of adjusted gross margin around 35% in fiscal 2025 [35][44] - The company is optimistic about the international market growth, particularly in Germany, and plans to leverage its EU GMP certification to enhance margins [29][72] - Management highlighted the potential for favorable changes in government policy regarding cannabis regulation and taxation, which could benefit the industry [76][81] Other Important Information - The company plans to invest $8 million to $10 million in sustaining capital expenditures during fiscal 2025, alongside an additional $16 million for capacity enhancement projects [42] - Cash position as of December 31 was $71.2 million, with negligible debt, indicating a strong balance sheet [41][43] Q&A Session Summary Question: Insights on international market growth and investment opportunities - Management highlighted the growth of the German medical market and the potential for increased demand through strategic partnerships, particularly with Sanity Group [51][72] Question: Pro-forma financials and profitability trends - Management indicated that consolidated EBITDA is expected to exceed last year's figures, with significant synergies anticipated in the back half of the year [61][62] Question: Strength of international markets and EU GMP certification timing - Management noted that the EU GMP certification will enhance margins and demand, despite increased competition in the international market [70][72] Question: Potential impacts of government changes on the cannabis industry - Management discussed the potential for favorable regulatory changes under a new government, which could support industry growth and reduce excise taxes [76][81]

Financial Performance - OrganiGram reported a quarterly loss of $0.05 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.03, representing an earnings surprise of -66.67% [1] - The company posted revenues of $30.54 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 10.57%, compared to year-ago revenues of $26.78 million [2] - Over the last four quarters, OrganiGram has surpassed consensus EPS estimates only once and topped consensus revenue estimates two times [2] Stock Performance and Outlook - OrganiGram shares have increased approximately 7.5% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.03 on revenues of $46.67 million, and -$0.09 on revenues of $177.82 million for the current fiscal year [7] Industry Context - The Medical - Products industry, to which OrganiGram belongs, is currently in the top 30% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The performance of OrganiGram's stock may be influenced by the overall industry outlook, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - For Q1 Fiscal 2025, Organigram reported an adjusted gross margin of 45% compared to 40% in Q1 Fiscal 2024, indicating a 5 percentage point improvement year-over-year[8]. - The company achieved an adjusted EBITDA of $10 million for the quarter, reflecting a significant increase from $5 million in the same period last year, representing a 100% growth[8]. - Gross revenue for Q1-2025 was $66,806 million, an increase of 19% from $56,270 million in Q1-2024[72]. - Net revenue for Q1-2025 reached $42,730 million, up 17% from $36,455 million in Q1-2024, driven by increased international and recreational revenue[75]. - Adjusted EBITDA for Q1-2025 was $1,410 million, a significant increase of 937% compared to $136 million in Q1-2024[72]. - The gross margin for Q1-2025 was $13,814 million, representing a 106% increase from $6,700 million in Q1-2024[72]. - The net loss for the three months ended December 31, 2024, was $22,957 or $0.202 per Common Share, compared to a net loss of $15,750 or $0.194 per Common Share for the same period in 2023[97]. - The company reported a net loss of $22,957 million in Q1-2025, a 46% increase from a net loss of $15,750 million in Q1-2024[72]. Production and Capacity - Organigram's production capacity is expected to increase with the licensing of new facilities, including the Moncton Campus and Winnipeg Facility, which are projected to enhance overall output by 30%[10]. - The company harvested 21,087 kg of dried flower in Q1 Fiscal 2025, an increase from 19,946 kg in Q1 Fiscal 2024, reflecting improved operational efficiency[40]. - The Lac-Supérieur Facility was expanded to 33,000 square feet, increasing its capacity to produce 2,400 kilograms of flower and over 2 million packaged units of hash annually[42]. - The Winnipeg Facility is capable of producing over 4 million gummies monthly, showcasing the company's capacity for high-volume production[41]. - The Aylmer Facility produces approximately 1,350 kg of distillate, 400,000 kg of hydrocarbon extract, 750,000 pre-rolls, and has the capacity to fill one million vapes monthly[44]. - The Company anticipates increasing its flower output by approximately 12,000 kg annually through expansion initiatives in Fiscal 2025 and 2026[58]. Strategic Initiatives and Collaborations - Organigram is focusing on the commercialization of its FAST nanoemulsion technology, which is expected to provide a competitive edge in the gummy product category[10]. - The company is in the process of integrating Motif Labs Ltd., with expected synergies projected to enhance operational efficiency and reduce costs by approximately 15%[10]. - Organigram's collaboration with British American Tobacco is expected to yield strategic benefits, including access to new markets and enhanced product development capabilities[10]. - The company has established a "Centre of Excellence" in collaboration with BAT to focus on developing next-generation cannabis products[26]. - The Company expects to yield 27,129 kg of cannabis from its biological assets as of December 31, 2024, down from 28,889 kg as of September 30, 2024[162]. Market Position and Growth - The company anticipates a revenue growth of 20% for Fiscal 2025, driven by increased demand for both medical and recreational cannabis products[13]. - Organigram's market share in the Canadian cannabis sector is projected to grow by 5% due to increased distribution and product offerings[10]. - SHRED brand achieved $230 million in annual retail sales as of the end of Q1 Fiscal 2025, maintaining a strong market position[36]. - Organigram holds the 3 market share position in the flower category and the 1 market position in all pre-rolls as of December 31, 2024[59]. - The cannabis market in Canada is projected to reach $5.3 billion by 2028, with exports increasing from $8 million in 2020 to approximately $218 million in 2024[51]. Financial Position and Investments - Total assets increased by 60% to $479,207 million in Q1-2025 from $299,014 million in Q1-2024[72]. - Working capital increased by 32% to $162,532 million in Q1-2025 from $122,823 million in Q1-2024[72]. - The Company expects to generate over $10 million in annual run-rate synergies from the Motif acquisition within 24 months[33]. - The Company completed its EU-GMP audit in November 2024, which is expected to drive growth in international revenue[66]. - The Follow-on BAT Investment includes $83 million earmarked for the Jupiter Pool investment fund to support international expansion initiatives[67]. Challenges and Risks - The company is actively monitoring the impact of geopolitical events, such as the ongoing conflict in Israel, on its supply chain and market demand[13]. - The company has identified material weaknesses in internal control over financial reporting, which have not been fully remediated as of December 31, 2024[193]. - Management is committed to remediating the identified weaknesses by the end of Fiscal 2025[200]. - The company engaged PKF O'Connor Davies for an integrated audit, which resulted in an adverse report on the effectiveness of internal control over financial reporting[186].