Organigram reports impressive growth for 2018 in advance of adult recreational sales results

Organigram Holdings Inc. (TSX VENTURE: OGI) (OTCQX: OGRMF), the parent company of Organigram Inc., a leading licensed producer of cannabis, is pleased to announce its 2018 fiscal year and fourth quarter results. The Company's fiscal year-end and fourth quarter encompasses operations up to and including August 31, 2018 and as a result, does not include adult-use recreational cannabis revenue.

"The importance of 2018 can not be overstated for Organigram as well as the industry," said Greg Engel, the Company's Chief Executive Officer. "We are incredibly proud of our ability to meet the challenges of scaling our business in preparation for the adult recreational use market. We are pleased with our progress to date and believe that we have performed well in a highly competitive space while always maintaining a sustainable cost structure. Ultimately, it is our view that our Moncton Campus will be seen as a crown jewel in the industry as it is able to produce consistent, high-quality indoor grown product at scale to support our brands with the lowest dried flower cultivation costs reported to date in Canada."

Select Highlights for Fiscal 2018

The Company is proud to report record net sales of $12.4 million for the 2018 fiscal year (up 131% from $5.4 million in 2017).

Gross margin increased to $52.5 million in 2018 from $(3.3) million in 2017. Excluding fair value adjustments on biological assets those figures would be $6.5 million and $(1.9) million, respectively.

Registered medical patients increased to 15,730 in 2018 from 7,404 in 2017 or 112%.

Reported net income of $20.5 million in 2018 up from $(10.9) million in 2017.

Outlook

Fiscal 2019 sales will be dominated by adult recreational use revenue and the Company estimates that Q1, 2019 sales will exceed that of the full year for fiscal 2018, despite only a portion of Q1, 2019 including adult recreational use market sales. Further, the Company expects that Q2, 2019 sales will exceed Q1, 2019 sales based on purchase orders received to date.

The Company reported biological assets and inventories of $19.9 million and $45.0 million, respectively, as of August 31, 2018. The Company believes that these balance sheet categories are an important indicator of a licensed producer's ability to service its medical and adult recreational customer.

The Company continues to add resources to refine and streamline its packaging, excise stamp application and logistics processes to draw down its dried flower and oil inventories to meet ongoing demand.

Based on media coverage and physical presence in stores, the Company is confident that it currently has the leading market share position in the Maritime provinces of New Brunswick, Nova Scotia and Prince Edward Island with a strong presence in Alberta, Manitoba, Newfoundland and Ontario.

READ THE REST OF THE FULL RELEASE HERE
Read More