Organigram Holdings Inc. (OGI), a prominent Canadian cannabis company, announced on Wednesday a reduction in its net loss for the fourth quarter, attributed to increased revenue and reduced costs.
For the three months ending September 30, the company reported a net loss of C$5.433 million, a significant improvement from the C$26.595 million loss recorded during the same period the previous year. This improvement is primarily due to enhanced adjusted gross margins and decreased impairment losses.
The company's adjusted EBITDA rose sharply to C$5.860 million, compared to C$58,000 reported the previous year.
Expenses related to selling, general, and administrative activities decreased to C$14.300 million, down from C$15.787 million in 2023.
Cost of sales dropped to C$30.907 million, from C$34.321 million last year, as a result of operational efficiencies and reduced inventory provisions.
Revenue increased to C$44.7 million, up from C$36.7 million, largely driven by a boost in recreational cannabis sales and enhanced international sales.
Industry analysts had anticipated the company to report a quarterly revenue of C$43.84 million.
Additionally, Organigram has indicated that a change in its fiscal year-end resulted in four-month and thirteen-month periods for the fourth quarter and full-year results in fiscal 2023, respectively.
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