OrganiGram Holdings Inc Q3 2024 Earnings Call Transcript

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

Question: Aaron Grey - Alliance Global Partners - Analyst : Hi. Good morning, and thank you for the questions. Congratulations on a nice quarter there. So first question for me, just on the EU GMP. Beena, I believe you said that that's expected in the near term. Could you just provide any more additional color on when you're expecting that? And are there any additional things you would need in terms of export licenses or otherwise that would hold you up to be able to utilize that EU GMP to export? And then secondly on that, just with Sanity Group a purchaser and how you just look to allocate capacity domestic versus international once you receive the EU GMP approval? Thank you.

Question: Aaron Grey - Alliance Global Partners - Analyst : Okay. Great. Thanks, guys. Really helpful color. Second question for me, a real nice uptick in the gross margin came ahead of our estimates. So just want to get some color in terms of how much more room there is for gross margin expansion there. You talked about some of the seed-based initiatives you have and some more benefits come there. You're also going to have initial margin capture once you get the GMP flowing through in 2025 it now sounds like. So just some expectation in terms of where you believe gross margins can get you (inaudible) guys. Thank you.

Question: Pablo Zunich - Zunich & Associates - Analyst : Thank you. Good morning, everyone. Ben, can you comment any color or feedback that Sanity may have given you in terms of what happened in Germany in the second quarter? I mean, some companies have talked about significant growth from April to July. Any color you can give in that sense would be helpful. And I asked this question in the context of the reported data coming out of Germany says that imports were up about 50% between 1Q and 2Q. But when we look at the large LPs numbers that have been reported, we didn't see much growth there. So I wonder where that's coming from. So it's a two-part question. Thank you.

Question: Pablo Zunich - Zunich & Associates - Analyst : Thank you. If I can just a follow-up here. In terms of Jupiter's investments in the US, in the case of OBX, right, on [Cemex] drugs, any concerns about the bands we are seeing at the state level or they haven't really materialized bands on hem derivatives? What are the people from OBX telling you? And then second part, would you be looking at making investments through Jupiter in US MSOs, right? We've seen other companies do that through -- with [guard rails]? Is that something that you would also consider? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 12:00PM, OGI.TO - Q3 2024 OrganiGram Holdings Inc Earnings Call

Question: Fredrico Gomes - ATB Capital Markets - Analyst : Hi. Morning. Congrats on the quarter. Thanks for taking my questions. Beena, you mentioned the improvement that you saw, I guess, in use per plant and a record for OGI. Does that have any relation to your seed-based production or is it related to other factors? And then just in terms of the seed-based production, can you remind us about what's the impact in terms of margins that would have to you? Thanks.

Question: Fredrico Gomes - ATB Capital Markets - Analyst : Thanks for that. And then in terms of the pricing, I guess, environment in Canada, I believe your average selling price for flower was flat quarter over quarter. So could you just comment on that in terms of how do you see that market evolving? Do you think we're finally going to be stable here and maybe increasing prices? So just any comment there because I know that the market remains very challenging, but we're seeing some stabilization here.

Question: Yewon Kang - Canaccord Genuity - Analyst : Hi. Good morning. Thank you for the question. Obviously, congratulations on a fantastic quarter. Nice to see sequential increases across virtually all metrics. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 12:00PM, OGI.TO - Q3 2024 OrganiGram Holdings Inc Earnings Call Just my first question here is regarding Germany. Now that we're a few months past the April 1 (inaudible) announcement, can you comment on any of the trends that you've been seeing with respect to the increase in [tumor] demand for medical cannabis there, along with increased supply becoming available in the market, particularly by Canadian LP exports and its impact on the pricing dynamics in the initial days there? Thank you.

Question: Yewon Kang - Canaccord Genuity - Analyst : Thanks for that. And if I could just ask my second question, a follow-up. Regarding the yields and potency KPIs that you guys maintained in terms of operational improvement, I think it was mentioned as part of the prepared remarks that these operational KPIs will fluctuate from time to time and that it will have an impact on margin performance over time. I was just wondering what kind of activities would make it more stable throughout and your expectation on the margin performance going forward should the yields and potency results become more stable throughout.