• About Us
  • Contact Us
  • Home
  • Write for us
Today Headline
No Result
View All Result
  • breaking news today
    • Politics news
    • Sports
    • Science News
  • Entertainment News
  • Technology News
    • Automotive
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us
  • breaking news today
    • Politics news
    • Sports
    • Science News
  • Entertainment News
  • Technology News
    • Automotive
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us
No Result
View All Result
TodayHeadline
No Result
View All Result

OrganiGram’s Turnaround Begins To Blossom

April 13, 2022
in Enterprise
0
OrganiGram’s Turnaround Begins To Blossom


Profitability Outlook Accelerated In Wake Of OrganiGram Results

OrganiGram (NASDAQ: OGI) reached a turning point in Q1 in which profitability became truly in reach. The company updated its outlook for profitability from Q4 to Q3 of the current fiscal year and the outlook is accelerating again. The Q2 results were boosted by faster than expected realizations of synergies related to the Laurentian acquisition and should provide a tailwind to what was already a positive outlook for the company. The bottom line is that, after years of reorganization and waiting by the market, it looks like the bottom is in for OrganiGram stock and a rally is about to unfold.

OrganiGram’s Turnaround Begins To Blossom

MarketBeat.com – MarketBeat

“We are also progressing well with the Laurentian integration. In less than three months we have been able to significantly increase distribution and begin to implement the synergies planned at acquisition. Automation to optimize production is also underway and expected to be complete by the end of Fiscal 2022.”

OrganiGram Turns Profits Two Quarters Ahead Of Schedule

OrganiGram had a truly great quarter producing $31.84 million in sales for growth of 117.5% over last year. The sales are 2600 basis points ahead of the Marketbeat.com consensus and due in part to the Laurentian acquisition. Sales are also driven by the company’s efforts to improve its product line, deepen penetration within its home province, and grow into Canada’s other major cannabis markets. The company reports its market share hit 8.2% of the total for the 2nd month in a row and it is #1 in the dried-flower category. Dried flowers are Canada’s largest cannabis segment and more than 50% of all revenue so that is important news.

Moving down the report, the news only gets better. The company reports its cost of sales fell 20% versus last year while impairments related to inventory fell by 26%. SG&A increased due to expansion and inflationary pressure but not enough to offset the revenue strength and reduction in costs. This left the adjusted gross margin at 26% and adjusted EBITDA at $1.6 million or 5.05% and in positive territory two full quarters ahead of earlier estimates. Based on the trajectory of the business, we see both revenue and margin improvement on a sequential basis for the next several quarters at least.

“The additional revenue from Laurentian, and continued growth in recreational and B2B sales, combined with improving margins through improved operational efficiencies, allowed us to achieve positive Adjusted EBITDA two quarters earlier than originally projected,” stated Derrick West, Chief Financial Officer. “Our strong balance sheet and cash position as well as the completion of our facility expansion to meet market demand, positions us well to deliver sustained value to our shareholders.”

The Technical Outlook: OrganiGram Moves Above The 30-Day EMA

Price action in OrganiGram has been bottoming over the past few months and now looks ready to move higher. The results plus the recent deal with Tilray (NASDAQ: TLRY) have the market poised for a rally and the indicators are consistent with this view. The stochastic is already firing a bullish signal low in the range and MACD is set up for the same. The risk is resistance at the $1.80 level but we think that will be broken fairly easily. The bigger risk is resistance at the $2.00 level which we think will be harder to break. A move above $2.00 would be bullish but if $2.00 can’t be overcome range-bound trading until the next big news comes out is the most likely scenario.
OrganiGram’s Turnaround Begins To Blossom

Previous Post

Adobe After Effects gets native Apple M1 support at last

Next Post

Cornwall hotel review: The delights of the recently restored Fowey Harbour Hotel

Related Posts

Enterprise

Labour’s Rachel Reeves aiming to be ‘Britain’s first green chancellor’ | Energy bills

Rachel Reeves has said she...

Read more
5 Simple SEO Strategies to Improve Your Rankings
Enterprise

5 Simple SEO Strategies to Improve Your Rankings

Opinions expressed by Entrepreneur contributors...

Read more
Enterprise

Bank of England completes sale of £19bn emergency bond purchases after mini-budget | Bank of England

The Bank of England has...

Read more
5 Ways Machine Learning Will Impact the Entrepreneurial Landscape In 2023
Enterprise

5 Ways Machine Learning Will Impact the Entrepreneurial Landscape In 2023

Opinions expressed by Entrepreneur contributors...

Read more
First Windows 11 preview builds arrive for 2023
Enterprise

First Windows 11 preview builds arrive for 2023

Image: MoMo Productions/Getty ImagesMicrosoft has...

Read more
Load More
Next Post
Cornwall hotel review: The delights of the recently restored Fowey Harbour Hotel

Cornwall hotel review: The delights of the recently restored Fowey Harbour Hotel

  • Trending
  • Comments
  • Latest
poker

Poker Strategies of Celebrity Players: Tips from the Pros

An Ava Max Song Led The Netherlands’ Far Right Party To Implode

An Ava Max Song Led The Netherlands’ Far Right Party To Implode

Espoma | Video: Stone Raised Bed Prep. with Summer Rayne Oakes || Flock Finger Lakes

Espoma | Video: Stone Raised Bed Prep. with Summer Rayne Oakes || Flock Finger Lakes

Who has scored more goals in a game than Kylian Mbappe’s 5?

Who has scored more goals in a game than Kylian Mbappe’s 5?

Steven Gerrard is ready to fly to Dortmund to get Jude Bellingham to join Liverpool 😂

Crystal Palace v. Brentford | PREMIER LEAGUE HIGHLIGHTS | 8/30/2022 | NBC Sports

Pamela Anderson’s new Netflix documentary debuts Jan. 31

Pamela Anderson’s new Netflix documentary debuts Jan. 31

Mobileye Global Inc. (MBLY) Q4 2022 Earnings Call Transcript

Mobileye Global Inc. (MBLY) Q4 2022 Earnings Call Transcript

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

Steven Gerrard is ready to fly to Dortmund to get Jude Bellingham to join Liverpool 😂

Crystal Palace v. Brentford | PREMIER LEAGUE HIGHLIGHTS | 8/30/2022 | NBC Sports

Pamela Anderson’s new Netflix documentary debuts Jan. 31

Pamela Anderson’s new Netflix documentary debuts Jan. 31

Steven Gerrard is ready to fly to Dortmund to get Jude Bellingham to join Liverpool 😂

Crystal Palace v. Brentford | PREMIER LEAGUE HIGHLIGHTS | 8/30/2022 | NBC Sports

Pamela Anderson’s new Netflix documentary debuts Jan. 31

Pamela Anderson’s new Netflix documentary debuts Jan. 31

  • Real Estate
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

No Result
View All Result
  • Real Estate
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

Go to mobile version