OrganiGram Holdings Inc Q3 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 : I wanted to talk a little bit about your guidance and as well as the impairment reported. So you had lower international sales this quarter. That was just delay and higher production costs from lower yields, among some other things. But these seem to be the main causes of the lower EBITDA. So both of these things are -- seem to be quickly reversed, and you're guiding for positive EBITDA next quarter. There could be -- maybe a rather large international shipment in Q4. And that could bring your sales back to levels that we saw in prior quarters in the low $40 million range. So that all suggests a pretty quick rebound. But at the same time, you had a $190 million impairment. So just a 2-part question. First is on the positive EBITDA guidance for next quarter, do you think that could occur, including R&D costs? And the second part of the question is just to reconcile the quick rebound and the large impairment that -- if that could -- if you could talk a little bit more about that, it would be helpful.

Question: Andrew Partheniou - Stifel Nicolaus Canada Inc., Research Division - Analyst : Okay. And then maybe talking a little bit more about your yield. You talked about changes to your growing conditions, which lowered yield, but it increased THC potency in the last month of the quarter. The yield rebounded and the THC level remained strong. I'm not sure how much you want to go into details here, but any kind of detail would be helpful to talk about what kind of changes did you make that resulted in a temporary loss of yield? As I would imagine, if you're changing growing conditions in an environment and then keeping those growing conditions stable, then that yield loss would be permanent.

Question: Andrew Partheniou - Stifel Nicolaus Canada Inc., Research Division - Analyst : Thanks for that additional color. It's nice to hear that everything is back on track now.

Question: Ty Collin - Eight Capital, Research Division - Analyst : Just wondering if you could comment on the price reductions you took in the quarter. Were these applied pretty broadly across the product portfolio or really kind of just concentrated in the 28-gram flower category? And then as an add-on to that, do you think there's room to claw some of that pricing back over time as some of your more potent product and new innovations starts to hit the market? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 14, 2023 / 12:00PM, OGI.TO - Q3 2023 OrganiGram Holdings Inc Earnings Call

Question: Ty Collin - Eight Capital, Research Division - Analyst : Okay. Great. And then, Beena, regarding your continued interest in the U.S. market, obviously, a couple of key catalysts in play there before year-end, including SAFE Banking and the Biden admin's scheduling review. Are those catalysts influencing your thinking on how and when to make additional investments in the U.S.? And to the extent that you're still considering THC assets, how might that sort of investment be structured, particularly given BAT?