OGI stock leads cannabis firms after strong revenue beat for Q2 (NASDAQ:OGI)

Computer Key - Organigram figure

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Canadian cannabis company, OrganiGram Holdings (NASDAQ:OGI), is trading sharply higher in the morning hours after its 2Q results for fiscal 2022 exceeded Street forecasts by as much as ~$6.6M on Tuesday.

Net revenue for the quarter more than doubled with ~117% YoY growth to $31.8M, mainly due to a rise in adult-use recreational revenue and international revenue. However, the lower average net selling price and a decline in medical revenue offset the growth amid a change in the product mix.

Meanwhile, the adj. EBITDA reached a positive $1.6M from a negative $7.8M in 2Q FY21 as adj. gross margin stood at ~26% of net revenue, compared to -5% in the prior-year period.

While net loss narrowed to $4.0M from $66.4M in 2Q FY21, the unrestricted cash and short-term investments dropped to $151M at the end of the quarter from $184M at the end of fiscal 2021.

As of February, OrganiGram (OGI) achieved ~8% of market share to retain its number three position among Canadian Licensed Producers for the second month in a row.

The company projects a sequential improvement in revenue and adjusted gross margins for 3Q FY22, compared to the previous quarter.

Go through the current Street forecasts for OrganiGram’s (OGI) quarterly revenue and earnings.

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