OrganiGram Holdings Inc Q4 2020 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 : Maybe if you could discuss the new SKUs that you guys have rolled out and the ones that are expected to come. Could you provide any kind of metrics on how well those SKUs have performed? I know you mentioned that some of them sold extremely well and has had stockouts. But wondering if you could get -- could get a little -- give a little bit more color. And how should we think about that? Should we -- going forward, should we kind of be expecting that this had maybe started off with relatively lower volumes and this will continue to ramp up -- or was this more of a step change for 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. NOVEMBER 30, 2020 / 1:00PM, OGI.TO - Q4 2020 OrganiGram Holdings Inc Earnings Call

Question: Andrew Partheniou - Stifel Nicolaus Canada Inc., Research Division - Analyst : Maybe going on a similar topic is kind of your Phase 5 expansion. Wondering if you could give any updates on that. And kind of what needs to happen in order to get some of your hydrocarbon extraction up and running and products on the shelves?

Question: Douglas Miehm - RBC Capital Markets, Research Division - Analyst : Maybe as a follow-up to what's just being discussed there with respect to the international market and taking the previous comments with respect to some of the staff levels and other efficiencies that you're looking to increase throughout fiscal 2021. To me, that sounds like it looks like Q2 might be the real inflection point that we should be looking at in terms of the new SKUs launching, whether it's the 40 that have been launched, the other 18 you're looking to launch in Q1, and then a potential restart of international shipments starting in Q2. Is my thinking correct there? I'd appreciate some further commentary with respect to the cadence of potential revenue growth. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 30, 2020 / 1:00PM, OGI.TO - Q4 2020 OrganiGram Holdings Inc Earnings Call

Question: Matt Bottomley - Canaccord Genuity Corp., Research Division - Analyst : Just wanted to expand a bit further on John's prior question there. It was sort of framed around Ontario. But when you look at the overall market growth, certainly at the retail level, and you've mentioned this in your outlook, you just need the 1 month of September. It looks like it's got a $3 billion 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. NOVEMBER 30, 2020 / 1:00PM, OGI.TO - Q4 2020 OrganiGram Holdings Inc Earnings Call Do you have any color on dynamics of how much LP as a whole are sort of losing their market share to the provincial buyers if pricing at the retail level are coming down at the same degree? I imagine more of the economics might be going to the processes and some of the wholly-owned retailers if there's a dynamic there to explore. And then if you can give any color on the product SKUs and format that you're focused on, maybe the edible side and then the beverage side of the powder beverage side. I know it's very nascent right now, but where do you think you rank in the overall Canadian landscape as those obviously have longer-term growth profiles than what we're seeing in dry flower?

Question: Matt Bottomley - Canaccord Genuity Corp., Research Division - Analyst : Appreciate that. And then just a quick follow-up. Maybe overall, just sort of a management risk investment or maybe higher level view on as this market continues to expand. So that $3.1 billion number I think is very encouraging. But when you look at the LP landscape [vape] overall, it's not really dominated by profitability at this point. Where do you see the opportunity to really lock in whether it's margin or things that are more specific to organic growth strategies and core competency plan? We see a lot of price monetization in dry flower. Is this a risk at the vape pen category given the high competition could see a REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 30, 2020 / 1:00PM, OGI.TO - Q4 2020 OrganiGram Holdings Inc Earnings Call similar dynamic in the next year here? And as the market gets closer and closer to -- I think the overall headline number in terms of market size might be close to $10 billion, and we'll see where that falls. Where do you assess the risk of subsequent product categories potentially being commoditized at the overall macro that the industry continues to grow pretty healthy?

Question: Douglas Miehm - RBC Capital Markets, Research Division - Analyst : Just a couple of quick questions. Number one, Greg, you're really close to the industry. And I'm just wondering what your thoughts are on M&A right now and what you see unfolding in Canada but also North and South of the border with respect to the Canadian market?

Question: Douglas Miehm - RBC Capital Markets, Research Division - Analyst : Okay. And then just -- I did want to continue on with the U.S. market, and you said you are doing some work about how that could unfold and how you're going to move as a result of that. Can you elaborate on what the company might be thinking? We've seen other companies move into the market. And I'm just wondering given your relationship with the company in Colorado, how you're thinking about it.