Cannabis company Organigram reports Q1 profit as revenue and margins improve

TORONTO — Organigram Holdings Inc. reported a profit in its latest quarter compared with a loss a year earlier as its revenue and margins improved.

The cannabis company says it earned net income of $5.3 million for the quarter ended Nov. 30 compared with a loss of $1.3 million in the same quarter a year earlier.

Net revenue for what was the first quarter of the company’s 2023 financial year totalled $43.3 million, up from $30.4 million a year earlier.

The company says the increase was primarily due to gains in adult-use recreational and international revenue, partly offset by a drop in medical sales.

Organigram says its adjusted gross margin for the quarter was 30 per cent, up from 18 per cent in the same quarter last year.

The company attributed the improvement to lower cultivation costs that were the result of higher plant yields, cost efficiency improvements and the increased scale of operations at its Moncton, N.B., facility.

This report by The Canadian Press was first published Jan. 12, 2023.

Companies in this story: (TSX:OGI

The Canadian Press