New Brunswick’s Organigram Holdings Inc. reported net revenue of $41.1 million for the third quarter of 2024 and net income of $2.8 million, compared to a loss of $213.5 million in the same reporting period in 2023.
Organigram’s net income increased from the previous quarter in 2024, up from a $27.1 million loss in Q2 2024. This is only the second quarter of net income the company has reported in the last eight quarters.
The majority of the company’s net revenue for the three months ended June 30, 2024, came from sales in Canada’s non-medical “adult use” market ($36.5 million or 89%), while just 6% of sales ( $8.3 million) were to the international markets and 1% of sales ($325,000) were into Canada’s medical cannabis market.
Sale of cannabis flower was 58% of Organigram’s business in Q3 2024, at an average cost of $1.50 per gram, down from $1.67 per gram in the same quarter in 2023 and $1.51 from Q2 2024.
In May 2024, Organigram announced a three-year supply agreement with Avida Medical in the UK, with the potential to supply 1,700 kilograms of indoor-grown dried cannabis flower to Avida. In June, it announced a plan to acquire a minority stake in Berlin-based cannabis company Sanity Group, expanding Organigram’s footprint in Europe.
Organigram reports having harvested 21,420 kg of dried flower during Q3 2024, up from 18,604 kg of dried flower in Q3 2023. The company says it expects Canada-wide legal sales to total $6 billion in calendar 2028.
“We are pleased to report a strong third quarter, highlighted by a 25% year-over-year increase in net revenue, and a significant improvement in adjusted EBITDA”, said Beena Goldenberg, Chief Executive Officer. “Our strategic investments and partnerships, both domestically and internationally, have positioned us for growth and diversification, particularly in the European market with our investment in Sanity Group. Furthermore, the preliminary results from our landmark PK study on our latest patent pending nanoemulsion technology demonstrate our ongoing commitment to innovation and expanding our product offerings. I continue to be very proud of our dedicated team for their hard work and contributions to these achievements.”
In August, Organigram announced new nanoemulsion technology in collaboration with British American Tobacco. Organigram was one of three Canadian cannabis companies named in a report from the Israeli government that proposes levies on Canadian cannabis products entering the country.
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