OrganiGram Holdings Inc (OTCMKTS:OGRMF) recently released its Q2 results for its fiscal year 2019, revealing that it achieved a record net revenue of $26.9 million.
Organigram is a licensed, leading cannabis producer and it released the results of its Q2 ended February 28, 2019 on Monday last week. The Q2 report also featured the first full quarter of the company’s sales related to adult use of recreational marijuana. Organigram CEO Greg Engel stated that Q2, FY19 represents the second consecutive quarter that the financial results demonstrated operational excellence. The performance also helped to achieve the record $26.9 million net revenue.
We executed very well again this quarter and have established Organigram as one of the leaders in the Canadian adult-use recreational market,” stated Mr. Engel.
Organigram expects the strong performance to continue for the rest of the year especially with the various initiatives that it has this year. This includes the upcoming edibles and derivative launch scheduled to take place during autumn 2019. The company is excited about the growth opportunities that will come with the new products as well as the strategic partnerships and expanding capacity.
Aside from the $26.9 million net revenue that the company achieved during its Q2 2019, it also reported a $33.5 million gross revenue. It also reported its cost of cultivation per gram at $0.65 and its “all-in” cultivation cost at $0.85. The latter includes the share-based compensation and the non-cash depreciation.
The company is currently working on its Moncton facility’s Phase 4 expansion through which it will create 92 incremental grow rooms. They will be added in stages and Organigram expects to complete the construction process before the end of 2019. Having additional grow rooms will triple the company’s current production capacity.
The firm is currently refurbishing its Phase 5 expansion on the extra 56,000 square feet in its facility. The ongoing refurbishment should bring it to European Union GMP level of standards as part of Organigram’s efforts to create more extraction capacity. The company expects the Phase 5 construction to be complete by October this year. These expansion efforts will effectively increase the company’s production capacity and thus boost its revenue.