Latest news with #Motif
The Market Online
15-05-2025
- Business
- The Market Online
Buzz on the Bullboards: Quarterly reports and company mergers
Canada's main stock index has had a dynamic week, buoyed by global trade developments and investor optimism. Monday saw a significant rally after the United States and China agreed to temporarily reduce reciprocal tariffs, easing fears of a full-scale trade war. This momentum carried into Tuesday, with the TSX edging higher despite a cooling Wall Street. By Wednesday, trading settled into a quieter rhythm as market participants digested earlier gains and awaited further trade news. What the 'Buzz' Our Bullboards have up to 2 million pageviews a day. Get the inside scoop on conversations around the most significant trends and stock appreciations in our weekly wrap up. Get 'Buzz on the Bullboards' delivered to your inbox every third Thursday! Buzz on the Bullboards | Sign Up Here This week also marks the heart of quarterly earnings season, a critical period when companies disclose their financial and operational performance. For investors, these reports offer valuable insights into corporate health and future prospects. Among the many companies reporting, three TSX-listed names have stood out. A cannabis leader on the rise Organigram Holdings Inc. (TSX:OGI, Forum), a leading licensed cannabis producer, delivered a robust Q2 fiscal 2025 earnings report, showcasing impressive growth across key financial metrics: Financial highlights Gross revenue : Soared 79% to $102.8 million. : Soared 79% to $102.8 million. Net revenue : Increased 74% to $65.6 million. : Increased 74% to $65.6 million. International revenue : Jumped 177% to $6.1 million. : Jumped 177% to $6.1 million. Adjusted gross margin : Rose to $21.9 million (33%). : Rose to $21.9 million (33%). Adjusted EBITDA : Rebounded to $4.9 million from a loss of $1.0 million. : Rebounded to $4.9 million from a loss of $1.0 million. Cash position: Strong at $83.4 million with minimal debt. Operational achievements Organigram maintains the #1 market share in Canada, leading in vapes, pre-rolls, milled flower, hash, and CBD gummies. The integration of Motif is expected to yield $15 million in annual cost synergies, exceeding initial projections. The acquisition of Collective Project Ltd. also marks a strategic entry into the cannabis beverage market across North America. Global expansion With $6.1 million in international sales this quarter, Organigram is expanding its footprint through partnerships in Germany, the U.K., and Australia, with more global opportunities on the horizon. Advancing cancer immunotherapy Oncolytics Biotech Inc. (TSX:ONC, Forum), a clinical-stage biotech firm, continues to make strides in oncology with its proprietary immunotherapy, pelareorep. Q1 2025 financial overview Cash & Equivalents : $15.3 million, supporting operations through Q3 2025. : $15.3 million, supporting operations through Q3 2025. Net Loss : Narrowed slightly to $6.7 million. : Narrowed slightly to $6.7 million. R&D Expenses : Declined to $4.1 million, reflecting lower trial costs. : Declined to $4.1 million, reflecting lower trial costs. G&A Expenses: Held steady at $3.0 million. Clinical progress The company will present new data at the ASCO Annual Meeting, highlighting pelareorep's immune-activating potential in pancreatic cancer. Updated results from the GOBLET study showed a 33% objective response rate in patients with advanced squamous cell anal carcinoma, including a complete response lasting over 15 months. Upcoming milestones Q2 2025 : Translational data from pancreatic cancer cohort. : Translational data from pancreatic cancer cohort. H1 2026: Initial efficacy results from newly diagnosed metastatic pancreatic cancer cohort. These developments position Oncolytics as a compelling biotech play with potential for breakthrough therapies in hard-to-treat cancers. A new energy powerhouse Whitecap Resources Inc. (TSX:WCP, Forum) has completed its transformative merger with Veren Inc., creating one of Canada's largest oil and gas producers. Strategic highlights Now the 7th largest oil and gas and 5th largest natural gas producer in Canada. and producer in Canada. Largest landholder in Alberta's Montney and Duvernay formations. formations. Strong presence in Saskatchewan's light oil sector. Leadership and governance The combined entity will be led by Whitecap's management team and a refreshed board of directors, blending leadership from both companies. This strategic alignment is expected to enhance operational efficiency and shareholder value. 2025 guidance Average Production : Raised to 295,000–300,000 boe/d (63% liquids). : Raised to 295,000–300,000 boe/d (63% liquids). H2 2025 Forecast : 363,000–368,000 boe/d on $1.1 billion in capex. : 363,000–368,000 boe/d on $1.1 billion in capex. Annual Capex: Approximately $2.0 billion. With a deep inventory of premium drilling opportunities and a focus on sustainable growth, Whitecap is well-positioned to deliver long-term value. A season of opportunity As earnings season unfolds, investors are reminded of the importance of staying informed and agile. Whether it's Organigram's international cannabis expansion, Oncolytics' promising cancer therapies, or Whitecap's energy sector consolidation, these TSX-listed companies exemplify the diverse opportunities available in Canada's capital markets. Now is the time to dig deeper, analyze performance trends, and align your portfolio with the evolving market landscape. For previous editions of Buzz on the Bullboards, click here. Join the discussion: Find out what everybody's saying about these stock on Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
The Market Online
12-05-2025
- Business
- The Market Online
Organigram reports record Q2 fiscal 2025 results
Organigram (TSX:OGI) announced its financial results for its Q2 of fiscal 2025, showing off notable growth across various metrics Gross revenue increased by 79 per cent to $102.8 million, up from $57.4 million in the same period last year Net revenue rose by 74 per cent to $65.6 million, compared to $37.6 million in the prior year period Organigram stock (TSX:OGI) last traded at C$1.64 Organigram (TSX:OGI) announced its financial results for its Q2 of fiscal 2025, showing off notable growth across various metrics. Financial highlights Gross revenue: Increased by 79 per cent to $102.8 million, up from $57.4 million in the same period last year. Increased by 79 per cent to $102.8 million, up from $57.4 million in the same period last year. Net revenue: Rose by 74 per cent to $65.6 million, compared to $37.6 million in the prior year period. Rose by 74 per cent to $65.6 million, compared to $37.6 million in the prior year period. International revenue: Surged by 177 per cent to $6.1 million, up from $2.2 million year-over-year. Surged by 177 per cent to $6.1 million, up from $2.2 million year-over-year. Adjusted gross margin: Improved to $21.9 million or 33 per cent, from $11.6 million or 31 per cent in the same period last year. Improved to $21.9 million or 33 per cent, from $11.6 million or 31 per cent in the same period last year. Adjusted EBITDA: Jumped to $4.9 million, a significant turnaround from $(1.0) million in the previous year. Jumped to $4.9 million, a significant turnaround from $(1.0) million in the previous year. Cash position: The company maintains a robust cash position of approximately $83.4 million with negligible debt. Operational achievements Market leadership: Organigram continues to hold the #1 market share position in Canada, leading in categories such as vapes, pre-rolls, milled flower, hash, and pure CBD gummies. The company is also ranked #3 in edibles and dried flower. Organigram continues to hold the #1 market share position in Canada, leading in categories such as vapes, pre-rolls, milled flower, hash, and pure CBD gummies. The company is also ranked #3 in edibles and dried flower. Motif integration: The integration of Motif is now expected to exceed initial estimates, providing approximately $15 million in annual cost synergies, up from the original estimate of $10 million. The integration of Motif is now expected to exceed initial estimates, providing approximately $15 million in annual cost synergies, up from the original estimate of $10 million. Acquisition of Collective Project Ltd.: This acquisition marks Organigram's entry into the burgeoning U.S. and Canadian beverage markets, with current distribution in 10 states and six provinces. International expansion Organigram achieved $6.1 million in international sales during Q2 Fiscal 2025 and anticipates further growth in the second half of the fiscal year. The company has established supply agreements with partners in Germany, the U.K., and Australia, and is exploring additional global partnership opportunities. Organigram's CEO, Beena Goldenberg expressed optimism about the company's trajectory, highlighting the strong financial performance and strategic initiatives that position the company for sustained growth in the competitive cannabis market. 'We are unlocking meaningful global growth potential — from increasing sales into key international markets like Germany, to our entrance into the U.S. hemp-derived beverage space,' she said in a media release. 'We expect this momentum to continue as we further strengthen our leadership in Canada and head into the seasonally stronger back half of the year.' About Organigram Organigram is a licensed Canadian producer of cannabis, cannabis-derived products and cannabis infused edibles. Its brand portfolio includes Edison, Holy Mountain, Big Bag O' Buds, SHRED, SHRED'ems, Monjour, Laurentian, Tremblant Cannabis and Trailblazer. Organigram stock (TSX:OGI) last traded at C$1.64 and was up 3.14 per cent last week, but down 31.67 per cent since this time last year. Join the discussion: Find out what everybody's saying about this cannabis stock in Canada on the Organigram Holdings Inc. Bullboard and check out Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
Business Wire
12-05-2025
- Business
- Business Wire
Organigram Reports Record Second Quarter Fiscal 2025 Results
TORONTO--(BUSINESS WIRE)--Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI), (the 'Company' or 'Organigram'), Canada's #1 cannabis company by market share, announced its record results for the second quarter ended March 31, 2025 ('Q2 Fiscal 2025'). The Q2 Fiscal 2025 results include a full quarter of consolidated financials from the Company's acquisition of Motif Labs Ltd. ("Motif") on December 6, 2024. Q2 FISCAL 2025 HIGHLIGHTS Gross revenue increased 79% to $102.8 million from $57.4 million in the same prior year period. Net revenue increased 74% to $65.6 million from $37.6 million in the same prior year period. International revenue increased 177% to $6.1 million from $2.2 million in the same prior year period. Adjusted gross margin 1 increased to $21.9 million or 33%, from $11.6 million or 31% in the same prior year period. Motif integration now expected to exceed original estimate of $10 million to provide approximately $15 million in annual cost synergies. Adjusted EBITDA 1 increased to $4.9 million from $(1.0) million in the same prior year period. Total cash position of approximately $83.4 million 2 and negligible debt. Maintained #1 market share position in Canada — #1 in vapes, #1 in pre-rolls, #1 in milled flower, #1 in hash, #1 in pure CBD gummies, #3 in edibles, #3 in dried flower 3. Acquired Collective Project Limited ("Collective Project"), marking entry into the fast-growing U.S. and Canadian beverage categories, with current distribution in 10 states and six provinces. Closed third and final $41.5 million tranche of $124.6 million follow on investment from BAT. 'Our record revenue this quarter reflects the strength of our brands and our ability to execute across both domestic and international markets,' said Beena Goldenberg, Chief Executive Officer. 'We are unlocking meaningful global growth potential — from increasing sales into key international markets like Germany, to our entrance into the U.S. hemp-derived beverage space. We expect this momentum to continue as we further strengthen our leadership in Canada and head into the seasonally stronger back half of the year.' SECOND QUARTER FISCAL 2025 FINANCIAL OVERVIEW Net revenue: Net revenue increased 74% to $65.6 million, from $37.6 million in the second quarter ended March 31, 2024 ("Q2 Fiscal 2024"), primarily driven by contributions from the Motif acquisition, as well as organic growth in recreational and international sales. Adjusted Gross margin 4: Adjusted gross margin was $21.9 million, or 33% of net revenue, compared to $11.6 million, or 31%, in Q2 Fiscal 2024. The increase was primarily attributed to higher average selling prices, product mix, and higher international sales. The adjusted gross margin of 33% in Q2 Fiscal 2025 reflects Motif's margin before full synergy realization. Organigram's standalone adjusted gross margin excluding Motif was 37% in the quarter. Management expects adjusted gross margin to improve over the coming quarters as Motif acquisition related synergies are realized. Selling, general & administrative ("SG&A") expenses: SG&A increased 11% to $22.5 million from $20.3 million in Q2 Fiscal 2024. The increase was attributable to the inclusion of Motif SG&A in our consolidated financials as well as higher trade investments to support the growth of the business. As a proportion of net revenue, SG&A decreased to 34%, compared to 54% in Q2 Fiscal 2024, reflecting improved operating leverage. Net income: Net income was $42.5 million compared to a net loss of $27.1 million in Q2 Fiscal 2024. The increase in net income from the prior period is primarily attributable to higher fair value gains recognized in relation to top-up-rights of BAT and other financial instruments. Adjusted EBITDA 4: Adjusted EBITDA was $4.9 million compared to $(1.0) million in adjusted EBITDA in Q2 Fiscal 2024. The increase was primarily attributable to higher recreational sales, including Motif contributions, international revenue, and operational efficiency gains. Net cash used in operating activities before working capital changes: Net cash used in operating activities was $1.6 million, compared to $8.3 million cash used in Q2 Fiscal 2024. The decrease was primarily attributable to higher adjusted gross margin 4 in Q2 Fiscal 2025. 'Our Q2 results continue to demonstrate our growing scale. We have made incremental investments into Motif which have allowed us to further increase the expected synergy realization up to $15 million annualized from our prior estimate of $10 million. Furthermore, through targeted investments in working capital we are in a good position to capitalize on our seasonally stronger months in the second half of the year,' said Greg Guyatt, Chief Financial Officer. 'With a roadmap for improving gross margins, and growing contribution from higher-margin international sales, we see a clear path to sustained profitability and continued financial strength as we balance growth and controlling costs.' CANADIAN RECREATIONAL MARKET INTRODUCTIONS As Canada's market leader in recreational cannabis, Organigram remains committed to delivering consumer focused innovations and products to its customers. Some notable recent highlights include: Edison Sonics - 4 x 2.5mg FAST TM nanoemulsion gummies in Apple Berry Smack flavour BOXHOT Diamond Doobies - 2 x 0.5g coated infused pre-rolls available in Apple 3.14 (pi), Pineapple Express, and Tangerine Scream SHRED - 5 x 0.4g Cherry Crusher Heavy Slims infused tube-style pre-rolls Monjour - FAST TM now available for pure CBD Monjour gummies New Seed-Based Cultivars - GMO Kush and UK Cheddar Cheese Trailblazer M'mosa - Premium hang-dried flower, hand-groomed, smart cured, and hand-packed in a glass jar Trailblazer Slim Blunts - Sativa tube-style pre-rolls wrapped in tea leaf paper for a smooth, citrus-y flavour Debunk Uncut Gems - Liquid diamond 510 vape RESEARCH AND PRODUCT DEVELOPMENT Product Development Collaboration ("PDC") Organigram and BAT continue to collaborate through the PDC to research and develop innovative technologies in the edible, vape and beverage categories in addition to new disruptive inhalation formats aimed at creating solutions to addressing the biggest consumer pain points that exist in the category today. Organigram has commercialized the first product resulting from PDC research — Edison Sonics: gummies utilizing Organigram's Fast Acting Soluble Technology (FAST TM). Follow-on Strategic Investment from BAT and creation of "Jupiter" Strategic Investment Pool On November 6, 2023, Organigram announced a $124.6 million follow-on investment from BAT and the creation of "Jupiter", a strategic investment pool established to expand Organigram's geographic footprint and capitalize on emerging growth opportunities. The final $41.5 million tranche closed in February 2025. $59 million of the Jupiter fund remains available to support continued expansion in the U.S. and other international markets in compliance with applicable laws. JUPITER STRATEGIC INVESTMENT POOL Organigram made its first significant European strategic investment to expand its presence in the European cannabis market with a $21 million investment in Sanity Group GmbH ("Sanity Group"), a leading German cannabis company. Our investment in Sanity Group was supported by an expanded supply agreement, making it one of our largest customers. Since the April 1, 2024 expansion of Germany's medical cannabis program, the market has grown at least 4x and continues to show strong growth potential. Sanity Group is uniquely positioned, having already submitted applications for adult-use recreational pilot projects in Berlin, Frankfurt, Düsseldorf, and Bremen. Approval is pending from the Institute of Food & Nutrition, which oversees the pilot projects. Jupiter has also deployed US$2 million into Steady State LLC (d/b/a Open Book Extracts), a U.S.-based company specializing in hemp-derived cannabinoid ingredients. OTHER INTERNATIONAL INVESTMENTS Prior to the establishment of Jupiter, Organigram had already made a US$7 million strategic investment in U.S.-based Phylos Bioscience Inc., a leader in seed-based technology. The Company expects to further leverage lower-cost seed-based technology over time. On March 31, 2025, Organigram acquired Collective Project, which enabled it to enter the beverage category, with hemp-derived THC beverage distribution in 10 U.S. states and THC beverage distribution in six Canadian provinces. Organigram is exploring additional U.S. and international investment opportunities that align with the Company's strategy to establish itself as a global leader. INTERNATIONAL SALES In Q2 Fiscal 2025, Organigram achieved $6.1 million in international sales and expects international sales to increase in the second half of fiscal 2025 versus the first half. Organigram has supply agreements with partners in Germany, U.K., and Australia, and is evaluating additional global partnership opportunities. Organigram's investment in Sanity Group resulted in the expansion of their previous supply agreement. The agreement is expected to be further expanded upon Organigram receiving EU-GMP certification of its Moncton facility, expected in the coming months. Collective Project has begun generating U.S. recreational revenue from hemp-derived THC beverage sales. BALANCE SHEET & LIQUIDITY As of March 31, 2025, the Company had cash (including restricted cash and short-term investments) of $83.4 million. Note (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 and might not be comparable to similar financial measures disclosed by other issuers; please refer to 'Non-IFRS Financial Measures' in this press release for more information. Expand Select Balance Sheet Metrics (in $000s) MARCH 31, 2025 SEPTEMBER 30, 2024 % Change Cash & short-term investments (including restricted cash) 83,373 133,426 (38)% Biological assets & inventories 115,049 82,524 39% Other current assets 60,080 46,269 30% Accounts payable & accrued liabilities 63,001 47,097 34% Current portion of long-term debt 55 60 (8)% Working capital 182,879 208,897 (12)% Property, plant & equipment 119,944 96,231 25% Long-term debt — 25 (100)% Total assets 537,903 407,860 32% Total liabilities 147,337 101,871 45% Shareholders' equity 390,566 305,989 28% Expand The following table reconciles the Company's Adjusted EBITDA to net loss. Note 1: Other (income) expenses includes share of loss from investments in associates, (gain) loss on disposal of property, plant and equipment, change in fair value of derivative liabilities, preferred shares, contingent consideration and other financial assets, and certain other non-operating (income) expenses. Expand The following table reconciles the Company's adjusted gross margin to gross margin before fair value changes to biological assets and inventories sold: Second Quarter Fiscal 2025 Conference Call The Company will host a conference call to discuss its results with details as follows: Date: May 12, 2025 Time: 8:00 am 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, 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. Adjusted EBITDA is a non-IFRS measure that the Company defines as net income (loss) before: net of financing costs; income tax expense (recovery); depreciation, amortization, impairment, normalization of depreciation add-back due to changes in depreciable assets resulting from impairment charges, (gain) loss on disposal of property, plant and equipment (per the consolidated statement of cash flows); share-based compensation (per the consolidated statement of cash flows); share of loss (gain) from investments in associates including impairment loss; change in fair value of contingent consideration; change in fair value of derivative liabilities, other financial assets and preferred shares; expenditures incurred in connection with research and development ("R&D") activities (net of depreciation); unrealized gain on changes in fair value of biological assets; realized fair value on inventories sold and other inventory charges; provisions and net realizable value adjustments related to inventory and biological assets; government subsidies, insurance recoveries and other non-operating expenses (income); legal provisions (recoveries); ERP implementation costs; transaction costs; share issuance costs; and provision for expected credit losses. Adjusted EBITDA is intended to provide a proxy for the Company's operating cash flow and derive expectations of future financial performance for the Company, and excludes adjustments that are not reflective of current operating results. Adjusted gross margin is a non-IFRS measure that the Company defines as net revenue less cost of sales, before the effects of (i) unrealized gain on changes in fair value of biological assets; (ii) realized fair value on inventories sold and other inventory charges; (iii) provisions and impairment of inventories and biological assets; and (iv) provisions to net realizable value. Adjusted gross margin % is calculated by dividing adjusted gross margin by net revenue. Management believes that these measures provide useful information to assess the profitability of our operations as they represent the normalized gross margin generated from operations and exclude the effects of non-cash fair value adjustments on inventories and biological assets, which are required by IFRS. The most directly comparable measure to adjusted EBITDA, calculated in accordance with IFRS is net income (loss) and beginning on page 6 of this press release is a reconciliation to such measure. The most directly comparable measure to adjusted gross margin calculated in accordance with IFRS is gross margin before fair value changes to biological assets and inventories sold and beginning on page 6 of this press release is a reconciliation to such measure. About Organigram Global Inc. Organigram Global Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly-owned subsidiaries include Organigram Inc., a licensed cultivator or cannabis and manufacturer of cannabis-derived goods in Canada. Through its recent acquisition of Collective Project, Organigram Global participates in the U.S. and Canadian cannabinoid beverages markets. 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, Holy Mountain, Big Bag O' Buds, SHRED, SHRED'ems, Monjour, Tremblant Cannabis, Trailblazer, Collective Project, BOXHOT and DEBUNK. Organigram operates facilities in Moncton, New Brunswick and Lac-Supérieur, Québec, with a dedicated manufacturing facility in Winnipeg, Manitoba. The Company also operates two additional cannabis processing facilities in Southwestern Ontario; one in Aylmer and the other in London. The facility in Aylmer houses best-in-class CO2 and Hydrocarbon extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and pre-roll production. The facility in London will be optimized for labelling, packaging, and national fulfillment. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada). Forward-Looking Information This news release contains forward-looking information. Forward-looking information, in general, can be identified by the use of forward-looking terminology such as 'outlook', 'objective', 'may', 'will', 'could', 'would', 'might', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'continue', 'budget', 'schedule' or 'forecast' or similar expressions suggesting future outcomes or events. They include, but are not limited to, statements with respect to expectations, projections or other characterizations of future events or circumstances, and the Company's objectives, goals, strategies, beliefs, intentions, plans, estimates, forecasts, projections and outlook, including statements relating to the Company's future performance, the Company's positioning to capture additional market share and sales including international sales, expectations for consumer demand, expected improvement to gross margins before fair value changes to biological assets and inventories, expectations regarding adjusted gross margins, adjusted EBITDA and net revenue in Fiscal 2025 and beyond, expectations regarding cultivation capacity, the Company's plans and objectives including around the PDC, availability and sources of any future financing, availability of cost efficiency opportunities, the ability of the Company to fulfill demand for its revitalized product portfolio with increased staffing, expectations relating to greater capacity to meet demand due to increased capacity at the Company's facilities, expectations around lower product cultivation costs, the ability to achieve economies of scale and ramp up cultivation, expectations pertaining to the increase of automation and reduction in reliance on manual labour, expectations around the launch of higher margin dried flower strains, expectations around market and consumer demand and other patterns related to existing, new and planned product forms; expectations regarding the Company's acquisition, integration and synergy realization of Motif and Collective Project; expectations around FAST TM nanoemulsion technology; expectations regarding EU-GMP certification; timing for launch of new product forms, ability of those new product forms to capture sales and market share, estimates around incremental sales and more generally estimates or predictions of actions of customers, suppliers, partners, distributors, competitors or regulatory authorities; statements regarding the future of the Canadian and international cannabis markets and, statements regarding the Company's future economic performance. These statements are not historical facts but instead represent management beliefs regarding future events, many of which, by their nature are inherently uncertain and beyond management control. Forward-looking information has been based on the Company's current expectations about future events. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectations. These risks, uncertainties and factors include: general economic factors; international trade disputes sparked by tariffs and retaliatory tariffs or other non-tariff measures; changes to government laws, regulations or policies, including customs, tariffs, trade or environmental law, regulations or policies, or the enforcement thereof; receipt of regulatory approvals or consents and any conditions imposed upon same and the timing thereof; the Company's ability to meet regulatory criteria which may be subject to change; change in regulation including restrictions on sale of new product forms; change in stock exchange listing practices; the Company's ability to manage costs, timing and conditions to receiving any required testing results and certifications; results of final testing of new products; changes in governmental plans including those related to methods of distribution; timing and nature of sales and product returns; customer buying patterns and consumer preferences not being as predicted given this is a new and emerging market; material weaknesses identified in the Company's internal controls over financial reporting; the completion of regulatory processes and registrations including for new products and forms; market demand and acceptance of new products and forms; unforeseen construction or delivery delays including of equipment and commissioning; increases to expected costs; competitive and industry conditions; change in customer buying patterns; and changes in crop yields. These and other risk factors are disclosed in the Company's documents filed from time to time under the Company's issuer profile on the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval+ ('SEDAR') at and reports and other information filed with or furnished to the United States Securities and Exchange Commission ('SEC') from time to time on the SEC's Electronic Document Gathering and Retrieval System ('EDGAR') at including the Company's most recent MD&A and AIF. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward looking information is subject to risks and uncertainties that are addressed in the 'Risk Factors' section of the MD&A dated May 12, 2025 and there can be no assurance whatsoever that these events will occur. This news release contains information concerning our industry and the markets in which we operate, including our market position and market share, which is based on information from independent third-party sources. Although we believe these sources to be generally reliable, market and industry data is inherently imprecise, subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process, and other limitations and uncertainties inherent in any statistical survey or data collection process. We have not independently verified any third-party information contained herein.
Yahoo
12-02-2025
- Business
- Yahoo
OrganiGram Holdings Inc (OGI) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amidst ...
Net Revenue: Increased 17% to $42.7 million compared to Q1 of last year. International Sales: Grew 2.3% year over year to $3.3 million. Adjusted Gross Margin: Increased to $14.3 million or 33% from $11.2 million or 31% in the prior year period. Operating Expenses: Increased 11% to $25.1 million from $22.6 million in the prior year period. SG&A Costs: Totaled $17 million, a 7% increase from the prior year, but decreased as a percentage of net revenue from 44% to 40%. Adjusted EBITDA: $1.4 million compared to $0.1 million in the prior year period. Net Loss: $23 million compared to a net loss of $15.8 million in Q1 fiscal 2024. Cash Used by Operating Activities: $6.3 million compared to $8.1 million in the prior year period. Total Cash Position: $71.2 million, including both restricted and unrestricted cash. Capital Expenditures: Planned investment of $8 million to $10 million in sustaining capital expenditures during fiscal 2025. Warning! GuruFocus has detected 2 Warning Signs with OGI. Release Date: February 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. OrganiGram Holdings Inc (NASDAQ:OGI) achieved strong momentum as Canada's largest cannabis company by market share, with significant growth in pre-rolls and vapes. The company completed the Motif acquisition, which is expected to yield $10 million in annualized savings within 24 months, with early synergies already being realized. OrganiGram expanded its national market share by 500 basis points year over year, reflecting strategic positioning in high-growth segments. International sales grew to $3.3 million in Q1, with expectations for continued growth throughout fiscal 2025, supported by strategic investments and partnerships. The company is actively pursuing global expansion opportunities, with a focus on leveraging its strong balance sheet and strategic investments for international growth. OrganiGram faced competitive headwinds in the Edibles category, with market share declines due to low-cost single count gummies and price compression. Adjusted gross margin decreased sequentially from 37% to 33%, impacted by seasonally lower volume and competitive forces in the gummy category. Operating expenses increased by 11% to $25.1 million, primarily due to acquisition and transaction costs related to the Motif acquisition. The company reported a net loss of $23 million for the quarter, compared to a net loss of $15.8 million in Q1 fiscal 2024. There are concerns about potential oversupply in international markets, particularly in Germany, as more licensed producers enter the space. Q: Can you provide insights into your international expansion strategy, particularly regarding the EU-GMP certification and potential investments? A: Beena Goldenberg, CEO: The German medical market has grown significantly, and we have a strategic partnership with Sanity Group. We are also exploring opportunities in other medical markets like Australia, where we can export flower and potentially 2.0 products like vapes and gummies. Our EU-GMP certification will enhance our margins by eliminating middlemen. We are also considering investments in high-opportunity markets, excluding the US due to regulatory constraints. Q: Could you elaborate on the company's pro forma financials, particularly regarding revenue and EBITDA trends? A: Beena Goldenberg, CEO: We emphasize year-over-year comparisons due to seasonality. We only included three weeks of Motif's numbers in our consolidated financials, but expect significant earnings next quarter. Greg Guyatt, CFO, added that consolidated EBITDA is expected to exceed last year's, with synergies from the Motif acquisition contributing to profitability in the latter half of the year. Q: What are your thoughts on the growth potential in the German market and the impact of EU-GMP certification? A: Beena Goldenberg, CEO: The German market is growing, and our EU-GMP certification will increase demand from partners like Sanity Group. While more players are entering the market, our low-cost, high-quality product and strategic partnerships position us well. We also see opportunities in extracts and 2.0 products in markets like Australia. Q: How might the upcoming Canadian federal election impact the cannabis industry, particularly regarding excise tax reform? A: Beena Goldenberg, CEO: A new conservative government might focus on reducing crime, axing taxes, and cutting red tape, potentially benefiting the cannabis industry. We expect a harmonized national stamp and excise tax reform to strengthen the industry. If the liberals remain, a change in leadership could lead to a renewed focus on economic growth and innovation. Q: What are your expectations for the Canadian domestic market given the potential changes in government? A: Beena Goldenberg, CEO: Regardless of the election outcome, we anticipate a focus on strengthening the cannabis industry. Both potential governments may see the value in leveraging the industry for economic growth, reducing excise taxes, and supporting international expansion. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
30-01-2025
- Business
- Yahoo
Ex-Autodesk execs snag $46M to build the next gen of architecture design
Talk to many architects, and they'll likely tell you that Autodesk's software, including AutoCAD and Revit, has been indispensable to their work for decades. But despite their widespread use, Autodesk's former co-CEO and chief product officer Amar Hanspal says that the architecture, engineering, and construction (AEC) industry is using 20th century tools to design 21st century buildings. His latest startup, Motif -- a company that Hanspal describes as a 'next-generation design platform for buildings" -- is setting out to change that. It's now raised $46 million in aid of that effort. Hanspal is coming to the problem on the heels of a long career already in the space of AEC technology. He spent about 20 years at Autodesk, and then in 2018 he co-founded Bright Machines, a manufacturing automation company (which itself has raised significant funding). Six years later, Hanspal left Bright Machines and was looking for his next act. His exploration of the AEC industry revealed significant frustration among architects with existing software, which is largely not cloud-based and can take up to 45 minutes to process even simple edits. In 2023, Hanspal teamed up with Brian Mathews, former product CTO at Autodesk, to work on Motif. Motif's first product won't be ready until the first half of this year but Hanspal gave a rough picture of what it would be. He said that Motif is working on building a platform that will offer a set of cloud-native 3D computer-aided design tools that will have elements of machine learning and AI. The $46 million that the startup has now raised is a combination of seed and Series A funding. The Series A was led by CapitalG, Alphabet's growth fund, while Redpoint Ventures led the seed round. CapitalG partner Jill Chase told TechCrunch that she was researching the software for architects before meeting Motif. She noticed that it's a very large market with outdated products. She wondered why existing tools still haven't been disrupted and learned that putting 3D architecture models in the cloud is technically very difficult. In addition to the engineering complexity, selling these tools could be challenging, Chase said. 'You have to have some element of trust and relationships with big architecture firms for them to even let you in the door.' When she met Hanspal and Mathews, she immediately knew that their combined 40 years of experience in the AEC software industry will help them create a company that can take on incumbents. As for why it is taking so long to release the first product, Hanspal compared Motif's effort to design company Figma, which was in stealth mode for three years before releasing anything. 'It's a very big and ambitious venture that we know will take a substantial amount of effort to pull off,' Hanspal said. Motif is not alone in trying to disrupt AEC software. Other startups in the sector include Snaptrude and Arcol. But Hanspal is certain that Motif has the best chance of winning in this market. 'It really requires a very special team that is willing to do the hard work,' he said. 'I think that's us.'
