OrganiGram Stock Soars on the Back of a Strong Financial Report

organigram stock post earnings

OrganiGram Stock

One of the marijuana stocks that I’ve long championed, OrganiGram Holdings Inc (OTCMKTS:OGRMF, CVE:OGI), has been making me look good this past week. OrganiGram stock has gained about 14% following a very strong financial earnings report.

OrganiGram’s Q3 financial report was released on July 30. Since then, the company has been on an upward journey.

Some of the highlights of the report include record net sales for both the quarter and the nine-month period compared to last year, more than doubling the previous year’s numbers.

Quarterly net sales hit CA$3.7 million, compared to CA$1.9 million for the same period in 2017. Meanwhile, the nine-month net sales came in at CA$10.1 million, compared to CA$3.6 million in  the same period in the previous year. (Source: “Organigram Announces Record Q3 Financial Results – Net Income of $2.8 Million for the Quarter,” OrganiGram Holdings Inc, July 30, 2018.)


Cannabis oil sales numbers were similarly fantastic, jumping by 39% from Q2 and 452% from last year.

Chart courtesy of

One of the most important numbers to note long-term, however, is the cost of cultivation per gram. This will help the company maintain competitiveness as it peddles its wares in the crowded marijuana marketplace. The company hit CA$0.80 per gram, which is a strong number in the legal cannabis industry.

OrganiGram stock was also the beneficiary of an influx of patients, gaining 18% since Q2 to bring the total to 15,316.

Some of the softer highlights of the financial report include the harvesting statistics from the company’s Phase 2 expansion facility, bringing its target production of dried flower to 22,000 kilograms a year.

The company also noted that it made its first international medical shipment to Australia in July.

Another point of note: the company’s press release stated that OrganiGram “is confident it will be able to announce further provincial agreements in the adult recreational market in the current quarter.” (Source: OrganiGram Holdings Inc, op cit.)

Be on the lookout for news of that nature to keep the OrganiGram stock party going.

OrganiGram’s Financial Statistics

OrganiGram stock’s financials, listed in the table below, show a company that is growing, with strong sales increases and solid fundamentals that can help the company stay in the black.

All figures are in thousands, except earnings per share.

Three Months Ended May 31


Nine Months Ended May 31






Gross Sales







Sales Recovery


Not Meaningful



Not Meaningful

Net Sales







Cost of Sales (Including Indirect Production)







Gross Margin (Excluding Fair Value Adjustment)



Not Meaningful



Not Meaningful

Fair Value Adjustment on Bio Assets & Inventories



Not Meaningful



Not Meaningful

Gross Margin



Not Meaningful



Not Meaningful

General & Administration


$ 790





Sales & Marketing




$ 4,033



Share-based Compensation (Non-Cash)







Impairment of Goodwill


Not Meaningful


Not Meaningful

Net Financing Costs (Income)



Not Meaningful



Not Meaningful

Net Income



Not Meaningful



Earnings Per Share



Not Meaningful



Not Meaningful

Diluted Earnings Per Share



Not Meaningful



Not Meaningful

Dried Cannabis Flower Sold

303,428 g

196,129 g


736,153 g

598,060 g


Cannabis Oil Sold

768,400 ml

189,600 ml


1,739,250 ml

406,000 ml


(Source: OrganiGram Holdings Inc, op cit.)

Analyst Take

These are very strong numbers from a very strong company.

OrganiGram Holdings small and nimble. But unlike many other companies in the legal marijuana industry, it is not as highly valued.

As such, OrganiGram stock has escaped many of the accusations of overvaluation that have circulated in the pot market.