Organigram Holdings Inc. announced its results for the first quarter ended December 31, 2024, reporting a 17% increase in net revenue to $42.7 million from $36.5 million in the prior year. Gross sales for the quarter reached $66.8 million, up 19% year-over-year, surpassing consensus estimates.
The company's adjusted gross margin improved to $14.3 million, or 33% of net revenue, compared to $11.2 million, or 31%, a year ago. This improvement was driven by lower cultivation and post-harvest costs, reduced inventory provisions, and a favorable sales mix. Adjusted EBITDA for the quarter was $1.4 million, a significant increase from $0.1 million in Q1 Fiscal 2024.
Organigram reported a net loss of $22.9 million, primarily due to a higher fair value loss related to top-up rights of British American Tobacco. As of December 31, 2024, the company maintained a strong cash position of $71.2 million, with a pro forma cash position of approximately $113 million expected upon the closing of the final tranche of BAT's investment.
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