OrganiGram Holdings (NASDAQ:OGI), a Canadian Cannabis Company, has not been a good investment in the last 1 year. Low growth, as well as plummeting sales over previous quarters, mean unprofitable business for OrganiGram.
Investors received positive news on its most recent results as gross sales surged by 51% over the previous quarter. The firm demonstrated impressive quarterly revenue growth of 51% in quarter three.
However, investors need to be diligent as gross revenue was 29.1 million Canadian dollars for the period ending May 31. Net revenue is 39 % higher at CA$20.3 million. This means that the firm’s quarter three net revenues were up by just 13%.
Despite the firm’s ability to strengthen gross margins, it may not suffice for covering other expenses, as can be seen from the selling, general, and administrative expenses at CA$13.6 million, up by 22% from the previous period.
The company opines that rise in office and headcount costs including the Centre of Excellence, for developing new cannabis products. British American Tobacco had taken a 19.9% stake in OrganiGram earlier in the year.
The firm in its quarter three release said that it launched 84 new products since July 2020. It will further add another 20 stock-keeping units by the end of 2021.