OrganiGram (OGRMF) delivered a stellar quarter with a solid increment in sales YoY (year-over-year), which we discussed earlier in this series. Naturally, the increment in sales also trickled down to the company’s gross margin, which increased to 75% as a percentage of sales in the first quarter—compared to 25% in the first quarter of 2018.
With recreational cannabis legalization and growth in OrganiGram’s sales, the company reported a net income of ~29.5 million Canadian dollars in the first quarter—compared to a net loss of 1.2 million Canadian dollars in the first quarter of 2018. OrganiGram reported an EPS of 0.195 Canadian dollars—compared to a loss per share of 0.012 Canadian dollars a year ago. The company has restated the prior financial results due to adjustments related to discontinued operations.
An expansion in sales and an impact on the bottom line similar to OrganiGram’s recent earnings is what we want to see when companies like Canopy Growth (WEED) and Tilray (TLRY) report their earnings. Aphria (APHA), which reported its earnings earlier this month, also provided similar growth in its financial results YoY. To learn more, read Key Takeaways from Aphria’s Second-Quarter Earnings.
Next, we’ll discuss OrganiGram’s outlook on the cannabis industry (HMMJ) for fiscal 2019.