The recent round of earnings for the vast majority of large-cap cannabis companies in Canada has been weak. Therefore, it wasn’t too much of a surprise when OrganiGram (OGI) reported weaker than expected fourth-quarter on Monday…
OrganiGram posted 2019 revenues of $80.4 million which was a 547% increase year over year from revenues of just $12.4 million back in 2018. Gross margins improved by 2% on a strictly percentage basis growing from 45% to 47%. In 2019 gross margins grew 575% to $37.9 million or 47% of net revenue compared to $5.6 million or 45% of net revenue in 2018. The company also ended the year profitable with 2019 adjusted EBITDA of $19.9 million or 25% of net revenue which was negative $1.0 million just a year ago in 2018.
OrganiGram sells cannabis in all 10 provinces and estimates that they have approximately 10% of the Canadian adult-use recreational market under their belt.
OrganiGram expects to have a much more successful 2020 but what were some of the issues that caused a weak fourth quarter? Canada has been very slow at allowing the rollout of retail stores (to distribute their products) across the country. This has created a…
Continue reading at STOCKNEWS.com
