OrganiGram Holdings Inc Q4 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. Congrats on the nice quarter and again on the acquisition of Motif. I want to start off on Motif and dive a bit deeper in some of the potential synergies, right? So you spoke to -- on top-line potential of Quebec with vapes as well as some cost synergies in terms of the extraction. I want to dig deeper because I know you guys had been working with BAT with the program in terms of its own innovation with vape that BAT has. So I wanted to dive a bit more in terms of how you believe you can leverage the core competencies of Motif as well as vape to really drive further innovation within the vape category in cannabis. Thank you.

Question: Aaron Grey - Alliance Global Partners - Analyst : Thanks so much for that. That's helpful. And then just a second question for me, just embedded within the outlook commentary that Greg touched on earlier in the prepared remarks. Can you provide any color in terms of your thoughts on the overall Canadian market for growth that you expect, given that we've seen some acceleration in growth in the market this year as well as fragmentation, how much you expect that to remain? So your embedded expectation within your own -- for [OGI] as we look towards 2025 for the broader industry in Canada. Thank you.

Question: Aaron Grey - Alliance Global Partners - Analyst : That's a helpful color there. Thank you for the color. Congrats again ending 2024 on a strong note, and best of luck for 2025. Thank you.

Question: Frederico Gomes - ATB Capital Markets - Analyst : Good morning. Thanks for taking my questions. Congrats on the quarter. First question on international markets. We've seen that many other LPs are also investing and trying to get into those markets, so I'm just curious. Do you see any risk that these markets get more competitive, and you could see some price compression or just being harder and harder to grow internationally, given the Canadian LPs are ramping investments into those markets? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 18, 2024 / 1:00PM, OGI.TO - Q4 2024 OrganiGram Holdings Inc Earnings Call

Question: Frederico Gomes - ATB Capital Markets - Analyst : Thanks for that, Beena. Second question on your FAST emulsion technology and the claims that you're able to put into the packaging. Just curious what the feedback so far you're getting from consumers? Are they able to differentiate your product, just given the claims and the technology so far? And do you see any opportunity to license the technology or to use that in other markets, specifically in th US? Thanks.

Question: Frederico Gomes - ATB Capital Markets - Analyst : Great. Thank you very much.

Question: Pablo Zuanic - Zuanic & Associates LLC - Analyst : Thank you. Good morning, everyone. Beena, let me just follow up on that last question. So I see -- when you talk about the US, you're talking mostly about hemp derived. I understood the Jupiter fund. But when you see Canopy Growth with the Canopy USA guardrail structure and you look at SunStream SNDL with SunStream USA, there seem to be more Nasdaq-listed Canadian LPs that are finding a way to get exposure to plant-touching US assets. And here you are with the Jupiter fund, a very strong balance sheet, just focusing on hemp. So can you give more clarity why shy away from THC right now? Thank you.

Question: Pablo Zuanic - Zuanic & Associates LLC - Analyst : Thank you. That's very clear. Just shifting gear with the Conservatives, I think up 20 points in the polls, what do we know about Poilievre's stance on cannabis? We are getting news on potential excise tax changes, but should we be concerned about big reversals coming in cannabis policy if the Conservatives take control of the government next year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 18, 2024 / 1:00PM, OGI.TO - Q4 2024 OrganiGram Holdings Inc Earnings Call

Question: Pablo Zuanic - Zuanic & Associates LLC - Analyst : Very helpful. Thank you.

Question: Yewon Kang - Canaccord Genuity Group Inc. - Analyst : Hi, good morning. Thank you for the question. So my first question here is regarding the adjusted EBITDA margin this quarter. Obviously, very nice to see the sequential improvement and the reduction in overall OpEx. Just wanted to ask about looking ahead to fiscal year 2025, are you guys expecting this OpEx level in Q4 to remain stable throughout? Just looking for some commentary here to help us think about the expectations for this line item going forward. Thank you.

Question: Yewon Kang - Canaccord Genuity Group Inc. - Analyst : Got it. Thank you. And just the second one here is regarding the international segment. Looking ahead to next year, obviously, Germany has seen pretty significant growth this year with the legalization that was enacted back in April. How are you guys thinking about perhaps potential additional growth opportunities in that market given that the government's second pillar plan to introduce the retail model is currently stalling and there may be regulatory delays in terms of forming a government there? Thank you.

Question: Yewon Kang - Canaccord Genuity Group Inc. - Analyst : Thank you.