OrganiGram reports earnings
On January 28, OrganiGram (OGRMF) reported its first-quarter earnings for the quarter ending November 30. The earnings were received well and exceeded investors’ expectations. The stock rose as much as 18% to $5.31 compared to the closing the previous market day. Let’s look at the key results from OrganiGram’s earnings.
The net revenues were $12.4 million Canadian dollars—excluding excise taxes, which grew nearly 500% year-over-year from 2.4 million Canadian dollars in the first quarter of 2018. Sequentially, the company’s top line grew ~352% from 3.2 million Canadian dollars.
Why did the revenues grow?
The legalization of recreational cannabis in Canada boosted the company’s revenues from adult-use cannabis. When peers (HMMJ) including Canopy Growth (WEED) (CGC), Aurora Cannabis (ACB), and Tilray (TLRY) report their earnings, we could see a similar increase in sales due to Canada’s recreational cannabis legalization.
In a press release, OrganiGram stated that “the Company not only experienced its highest sales quarter of all time, but it also surpassed in a single quarter what it has historically done in an entire year of sales on the medical side.” The statement accurately sums up why the cannabis industry has garnered investors’ attention.