Organigram Q2 Revenue Increases 5% Sequentially to $31.8 Million

Organigram Reports Second Quarter Fiscal 2022 Results

Achieves positive Adjusted EBITDA two quarters earlier than expected driven by record high net revenue for the Company of $31.8 million and a top 3 national market share position among Canadian LPs.


  • Achieved gross revenue of $43.9 million, up 128% from the same prior-year period and consistent with Q1 Fiscal 2022, despite the impact of seasonality
  • Continued record growth in net revenue, reaching $31.8 million, the highest in the history of the Company, up 117% from $14.6 million in the same prior-year period and 5% from $30.4 million in Q1 Fiscal 2022
  • Achieved positive Adjusted EBITDA of $1.6 million, two quarters ahead of the Company’s initial estimate
  • Reached 8.2% market share1 in February 2022, the #3 position among Canadian licensed producers for the second month in a row1
  • Maintained #1 position in dried flower, the largest category, which represents approximately half of the Canadian cannabis market1
  • Launched 18 new products, including extensions to the SHRED’ems gummies line and two new premium strains to the Edison brand, bringing the total number of core SKUs in market to 69
  • Shipped 1,692 kilograms of high margin flower to Israel and Australia, marking the highest quarterly International B2B shipments in the history of the Company
  • Acquired Quebec-based hash and craft cannabis producer Laurentian, an immediately accretive transaction providing the Company with a broadened product portfolio and increased footprint in Quebec
  • Increased investment in Hyasynth, a pioneer in cannabinoid science. Once Hyasynth commences commercial production, the Company has the option to purchase Hyasynth’s proprietary biosynthesis-generated cannabinoids at a discount to the wholesale market price
  • Launched SHRED-X vapes, 510 vape cartridges with flavour profiles inspired by the unique flavours of the SHRED milled flower products
  • Received $6.3 million investment from BAT through the exercise of its rights pursuant to an Investor Rights Agreement with BAT, to enhance its equity ownership position in the Company from 18.8% to 19.4% as at the date hereof
  • Subsequent to quarter-end, leveraged the high visibility of the SHRED brand to introduce two new products. SHRED-X kief-infused blends, is a 50%/50% blend of kief and the popular SHRED milled flower – yet another innovative product that combines potency and flavour with convenience, and SHRED’ems POP!, gummies in the classic pop flavours of cola, root beer and cream soda

TORONTO, April 12, 2022–(BUSINESS WIRE)–Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (together, the “Company” or “Organigram”), a leading licensed producer of cannabis, announced its results for the second quarter ended February 28, 2022 (“Q2 Fiscal 2022”).

The culture of innovation and consumer focus we are building at Organigram has enabled us to not only create brands that are embraced by consumers, but continually innovate within those brands and across multiple product lines. We expect that leveraging these brands will allow us to continue to drive market share.

Beena Goldenberg, Chief Executive Officer

In addition to our continued success at building beloved brands, our ability to increase sales in international markets and capitalize on our accretive acquisitions, such as Laurentian and EIC, continue to contribute to our solid gains in market presence and sales growth.

“We are also progressing well with the Laurentian integration. In less than three months we have been able to significantly increase distribution and begin to implement the synergies planned at acquisition. Automation to optimize production is also underway and expected to be complete by the end of Fiscal 2022,” added Goldenberg.

1 Adjusted gross margin, adjusted gross margin % and adjusted EBITDA are non-IFRS financial measures not defined by and do not have any standardized meaning under IFRS; please refer to the Company’s Q2 Fiscal 2022 MD&A for definitions and a reconciliation to IFRS.
2 Excluding non-cash share-based compensation.
nm – not meaningful

“The additional revenue from Laurentian, and continued growth in recreational and B2B sales, combined with improving margins through improved operational efficiencies, allowed us to achieve positive Adjusted EBITDA two quarters earlier than originally projected,” stated Derrick West, Chief Financial Officer. “Our strong balance sheet and cash position as well as the completion of our facility expansion to meet market demand, positions us well to deliver sustained value to our shareholders.”

Key Financial Results for the Second Quarter Fiscal 2022

  • Net revenue:
    • Compared to the prior year, net revenue increased 117% to $31.8 million, from $14.6 million in Q2 Fiscal 2021. The increase was primarily due to an increase in adult-use recreational revenue and international revenue, partly offset by lower average net selling price (“ASP”) due to product mix and a decrease in medical revenue.
  • Cost of sales:
    • Q2 Fiscal 2022 cost of sales decreased by 20% to $25.0 million, from $31.1 million in Q2 Fiscal 2021. The decrease to cost of sales during a period when there was a large increase in sales was due to lower production costs, the elimination of unabsorbed overheads and significantly reduced inventory provisions.
  • Gross margin before fair value changes to biological assets, inventories sold, and other charges:
    • Q2 Fiscal 2022 margin improved to $6.9 million from negative $16.5 million in Q2 Fiscal 2021 largely due to higher net revenue and lower cost of sales as described above.
  • Gross margin:
    • Q2 Fiscal 2022 gross margin increased to a positive result from negative Q2 Fiscal 2021 gross margin largely due to higher Q2 Fiscal 2022 gross margin before fair value changes to biological assets and inventories sold as described above, as well as net non-cash negative fair value changes to biological assets and inventories sold in Q2 Fiscal 2022.
  • Adjusted gross margin2:
    • Q2 Fiscal 2022 adjusted gross margin was $8.3 million, or 26% of net revenue, compared to negative $0.7 million, or -5%, in Q2 Fiscal 2021. This was largely due to the higher overall sales volumes combined with lower cost of production.
  • Selling, general & administrative (SG&A) expenses:
    • Q2 Fiscal 2022 SG&A expenses increased to $14.0 million from $10.3 million in Q2 Fiscal 2021, primarily due to the higher spend to support the growth to the business combined with the acquisition of Laurentian.
  • Adjusted EBITDA3:
    • Q2 Fiscal 2022 adjusted EBITDA improved to positive $1.6 million compared to negative $7.8 million in Q2 Fiscal 2021, primarily due to the increase in adjusted gross margins, partially offset by the increase in SG&A expenses.
  • Net loss:
    • Q2 Fiscal 2022 net loss was $4.0 million, compared to a net loss of $66.4 million in Q2 Fiscal 2021, the reduction in the net loss is primarily due to the higher sales and gross margins in the current quarter.
  • Net cash used in operating activities:
    • Q2 Fiscal 2022 net cash used in operating activities was $5.3 million: this was primarily driven by the increase in inventories. In Q2 Fiscal 2021, net cash used in operating activities was $10.4 million, which was primarily driven by the loss from operations.

The following table reconciles the Company’s adjusted EBITDA.

The following table reconciles the Company’s adjusted gross margin:

Canadian Recreational Market

SHRED X 510 vape cartridges

  • In February 2022, the Company launched SHRED X vape cartridges in the 510 format. This new line of vapes is offered in flavours of the popular milled flower product: Tropic Thunder, Megamelon and Gnarberry, and are blended with a unique terpene blend to create a true cannabis flavour.

SHRED X kief-infused blends

  • Building on its leadership position with SHRED, the best selling milled flower product, the Company in March introduced a new innovative product consisting of a 50%/50% blend of SHRED combined with high quality kief. SHRED-X combines the convenience of milled flower with the higher potency of kief.

Edison new strains

  • The Company solidified the premium positioning of Edison, its flagship brand, by introducing two new strains of premium flower to its lineup. This includes Edison Kush Cakes, an indica-dominant cultivar with a high potency of 22-28% THC, and Edison Frozen Lemons, a sativa-dominant strain with a lemon flavour and aroma, and a potency of 20-26% THC.

SHRED’ems line extensions

  • SHRED’ems gummies, launched in August 2021, leveraged the popularity of the Company’s SHRED milled flower products, and quickly grew to a #3 position4 in the gummies category. Building on the success of the initial launch, the Company launched five new flavours, bringing a total of eight SHRED’ems SKUs to the market.

Big Bag O’ Buds line extension

  • To further differentiate its offering in the value segment, the Company introduced Pink Cookies to its Big Bag ‘O Buds product line. Pink Cookies is an indica-dominant strain with a potency of 18-24% THC. The Company now has five core Big Bag ‘O Buds SKUs available in the market, reflecting increasing consumer demand for variety in the value segment.

Research and Product Development

Product Development Collaboration (“PDC”) and Centre of Excellence (“CoE”)

  • In Fiscal 2021, Organigram launched the PDC with BAT which was established to focus on research and product development activities for the next generation of cannabis products, with an initial focus on CBD. R&D efforts are progressing well and the Company will be applying these discoveries and deep scientific knowledge to both strengthen its existing in market products, as well as the development of novel and new consumer-centric innovations.

Plant Science, Breeding and Genomics R&D in Moncton

  • Organigram’s cultivation program is a key strategic advantage for the Company and focuses on cultivating a pipeline of unique and sought-after genetics, maximizing flower quality in terms of THC yield, terpene profiles and general plant health to meet evolving consumer demand. The Company is aggressively expanding its in-house breeding program, and will be launching the first of many in-house genetic in the coming months.

Strategic Investment in Hyasynth Biologicals Inc. (“Hyasynth”)

  • Following the most recent investment of $2.5 million in December 2021, Organigram has invested a total of $10 million in Hyasynth through the participation in three tranches of convertible debentures. The Company has appointed two nominees to Hyasynth’s Board of Directors and has the option to purchase Hyasynth produced cannabinoids at a discount to the wholesale market price for a period of ten years from the date of Hyasynth’s commencement of commercial production.


  • In Q2 Fiscal 2022, the Company made two international shipments. In February, the Company shipped 1,692 kilograms of dry flower to Israel under its agreement with Canndoc and to Australia through Cannatrek.
  • Recent political changes and cannabis election ballot initiatives for medical and recreational use in the United States suggest that the potential movements to U.S. federal legalization of cannabis (THC) have increased momentum, but the timing and outcome remain difficult to predict. Organigram continues to monitor and develop a potential U.S. THC strategy and evaluate CBD entry opportunities in the United States.

Liquidity and Capital Resources

  • On February 28, 2022, the Company had unrestricted cash and short-term investments balance of $151 million compared to $184 million at August 31, 2021.
  • Organigram believes its capital position is healthy and that there is sufficient liquidity available for the near to medium term.

Capital Structure

Outstanding basic and fully diluted share count as at April 11, 2022 is as follows:


Net revenue

  • Organigram currently expects Q3 Fiscal 2022 revenue to be higher than Q2 Fiscal 2022. This expectation is largely due to ongoing sales momentum, stronger forecasted market growth, the Company’s expanded product line in multiple segments, greater capacity to meet demand at the Moncton Campus, increased throughput at the Winnipeg facility and the Laurentian acquisition.
  • Net revenue growth is expected from the Company’s products as evidenced by Organigram’s growing national adult-use recreational retail market share (“market share”) from 7.6% in Q1 of September 2021 to 8.4% in March 20226.
  • In addition, the continuation of shipments to Canndoc in Israel and Cannatrek in Australia is expected to generate higher sequential revenue in Fiscal 2022 as compared to Fiscal 2021. The Company believes it is better equipped to fulfill demand in Fiscal 2022 with larger harvests expected compared to Fiscal 2021. Revenues in Fiscal 2022 to date included two shipments to Canndoc that totaled approximately $7.0 million, and one shipment to Cannatrek for approximately $1.0 million. Orders received from other international customers support the Company’s expectation of continued revenue growth from Fiscal 2021 to Fiscal 2022.
  • Organigram expects to be positioned to generate further revenue growth from the production of soft chews/gummies and other edible products.
  • The Company also expects to realize additional revenue through the recent acquisition of Laurentian and will make growth-focused capital expenditures at Laurentian which have the potential to further increase EBITDA generation. Since the acquisition, the Company has accelerated the distribution and sale of Tremblant Cannabis, its flagship hash brand in Ontario, increasing distribution from 25% to 40% of retail stores and growing quarterly sales by 21% compared to Laurentian’s sales in the three months ended November 30, 2022. By leveraging Organigram’s industry-leading national distribution and field sales network, Laurentian products will be available in all Canadian provinces in Fiscal 2022.

Adjusted gross margins

  • The Company expects to see a sequential improvement in adjusted gross margins in Q3 Fiscal 2022 and has put measures in place that it expects will further improve margins over time.
  • The overall level of Q3 Fiscal 2022 adjusted gross margins versus Q2 Fiscal 2022 will also be dependent on other factors, including product category and brand sales mix.
  • Organigram has identified the following opportunities which it believes have the potential to further improve adjusted gross margins over time:
    • Economies of scale and efficiencies gained as it continues to scale up cultivation, including the grow rooms that will be available after completing the construction of Phase 4C of the Moncton Campus;
    • Changes to its growing and harvesting methodologies, design improvements and environmental enhancements which should improve operating conditions of the Moncton Campus, resulting in higher-quality flower and improved yields;
    • Continued investment in automation which will drive cost efficiencies and reduce dependence on manual labor;
    • Continued investment in the Edison brand, including product innovations across multiple categories and increased investment in building brand equity within the premium segment, both geared toward securing higher margins;
    • Additional innovative product launches such as Edison Jolts, SHRED’ems, Monjour and most recently SHRED X kief-infused blends, which represent new potential avenues for growth with expected attractive long-term margin profiles for the Company; and
    • Margin contribution from the addition of the Laurentian portfolio of products.

Second Quarter Fiscal 2022 Conference Call

The Company will host a conference call to discuss its results with details as follows:
Date: April 12, 2022
Time: 8:00am Eastern Time
To register for the conference call, please use this link:

To ensure you are connected for the full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. Registration is open through the live call.

To access the webcast:

A replay of the webcast will be available within 24 hours after the conclusion of the call at and will be archived for a period of 90 days following the call.

Non-IFRS Financial Measures

This news release refers to certain financial performance measures (including adjusted gross margin and adjusted EBITDA) that are not defined by and do not have a standardized meaning under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. Non-IFRS financial measures are used by management to assess the financial and operational performance of the Company. The Company believes that these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and prospects in a similar manner to the Company’s management. As there are no standardized methods of calculating these non-IFRS measures, the Company’s approaches may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the Company’s Q2 Fiscal 2022 MD&A for definitions and, in the case of adjusted EBITDA, a reconciliation to IFRS amounts.

About Organigram Holdings Inc.

Organigram Holdings Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly-owned subsidiaries include: Organigram Inc. and Laurentian Organic Inc. licensed producers of cannabis and cannabis-derived products in Canada, and The Edibles and Infusions Corporation, a licensed manufacturer of cannabis-infused edibles in Canada.

Organigram is focused on producing high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend the Company’s global footprint. Organigram has also developed a portfolio of legal adult-use recreational cannabis brands, including Edison, Big Bag O’ Buds, SHRED, Monjour and Trailblazer. Organigram operates facilities in Moncton, New Brunswick and Lac-Supérieur, Québec, with a dedicated manufacturing facility in Winnipeg, Manitoba. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).


1 Hifyre data extract from March 25, 2022
2 Adjusted gross margin is a non-IFRS financial measure not defined by and does not have any standardized meaning under IFRS; please refer to the Company’s Q2 2022 MD&A for definitions and a reconciliation to IFRS.
3 Adjusted EBITDA is a non-IFRS financial measure not defined by and does not have any standardized meaning under IFRS; please refer to the Company’s Q2 2022 MD&A for definitions and a reconciliation to IFRS.
4 Hifyre data extract from March 25, 2022
5 The disclosure in this section are subject to the risk factors referenced in the “Risk Factors” section of the Company’s Q2 Fiscal 2022 MD&A, which is available in the Company’s profile at Without limiting the generality of the foregoing, the expectations concerning revenue, adjusted gross margins and SG&A are based on the following general assumptions: consistency of revenue experience with indications of second quarter performance to date, consistency of ordering and return patterns or other factors with prior periods and no material change in legal regulation, market factors or general economic conditions. The Company disclaims any obligation to update any of the forward-looking information except as required by applicable law. See cautionary statement in the “Introduction” section at the beginning of the Company’s Q2 Fiscal 2022 MD&A.
6 Hiyre data extract from April 4, 2022

Original press release

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