Earlier last week, the market responded favorably to Organigram Holdings’ (Nasdaq: OGI) (TSX: OGI) second quarter financial results and the stock recorded a double-digit percentage gain on heavy trading volume on the day it reported.

The Canadian Licensed Producer’s (LP) earnings report marked the start of earnings season for the cannabis sector and we hope that other cannabis companies receive as favorable of a reaction as Organigram did.

We are impressed with the growth that was reported by Organigram (on a year-over-year basis) and have highlighted our favorite data points from the earnings report:

When compared to the same quarter last year, gross revenue increased by more than 125% (generated $43.9 million of gross revenue) and net revenue increased by more than 115% (generated $31.8 million of net revenue, which is a company record)
Reached profitability fasted than initially projected and reported $1.6 million of adjusted EBITDA.
According to a data extract from Hifyre, the Canadian LP reported to have the third most market share of Canadian LPs in January and February (8.2% in February) and we are favorable on the improvement in the ratings. Hyfire also reported that cannabis flower sales account for half of the Canadian market and claimed that Organigram has the most market share in the category.
During the quarter, the Canadian LP launched 18 new products which brought its portfolio to 69 SKUs. We are favorable on Organigram’s focus on the cannabis 2.0 market by expanding the SHRED’ems product line to include gummies
When it comes to the international side of the business, Organigram reported the most international shipments in the history of the company. During the quarter, the Canadian LP shipped 1,692 kilograms of high margin cannabis flower to Israel and Australia
During the quarter, Organigram captured additional market share in Quebec by acquiring Laurentian (a leading hash and craft cannabis producer in the province) and investing more in Hyasynth (a pioneer in cannabinoid science). The management team said the acquisition was immediately accretive, increased its footprint in Quebec, and expanded the product line.
The Canadian LP’s balance sheet improved after it received $6.3 million from a subsidiary of British American Tobacco (BAT). As a result, BAT’s ownership increased from 18.8% to 19.4% and we are favorable on this strategic relationship.

Organigram is led by a management team that is laser focused on creating value for shareholders. We are favorable on the direction the business is heading and are bullish on potential value that can be generated as the team continues to execute on organic and inorganic growth initiatives.

If you are interested in learning more about Organigram’s earnings report, please send an email to support@technical420.com with the subject “Organigram Quarterly Earnings” to be added to our distribution list.

Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.