OrganiGram Holdings Inc Q2 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Partheniou - Stifel Nicolaus Canada Inc., Research Division - Analyst : Just wanted to talk a little bit about the rec channel and the pricing environment that you were talking about during the call. You mentioned that you're not necessarily going to compete at these -- at the same irrational price levels that you're seeing on the value side. That has resulted in a little bit of market share loss and you've introduced some new products to try and compete a little bit differently in that market. But inventory seems to have increased this quarter as you expanded production. So I'm just wondering what kind of inventory level do you think is adequate for the business? And how are you thinking about this, given it sounds like it may be challenging to drive volumes in the segment that's responsible for a large majority of your sales in this irrational price environment?

Question: Andrew Partheniou - Stifel Nicolaus Canada Inc., Research Division - Analyst : And just thinking about your gross margin outlook, the international sales outlook and your operating cash flow, so you did have the best gross margin in 3 years and you did -- it seems -- correct me if I'm wrong, but you did -- it seems to adjust your gross margin outlook higher for this fiscal year. You mentioned international sales could normalize a little bit below what we saw in this quarter, Q2. I'm just wondering if you can expand a little bit on that? Where are you seeing the drivers of gross margin -- of the better gross margin outlook for this fiscal year and the negative operating cash flow before working capital? Could we see that reverse in the next quarter?