Canadian producer Organigram Holdings Inc. (TSX: OGI) is seeing a jump in its stock price, as the firm reports its brands are carving out more market share and boosting income.
On Tuesday, the company released its earnings results for the three months ended Aug. 31, with sales climbing 24 per cent to $36.2 million.
Organigram said it achieved 7 per cent of the recreational cannabis market, up from 5.4 per cent in the previous quarter, putting it at the number-four spot in the country. It reported its share increasing since then to 7.9 per cent as of October.
Net revenue rose 22 per cent to $24.9 million, from $20.3 million last quarter. Recreational net revenue hit $22.9 million, up 36 per cent.
Adjusted earnings before interest, taxes, depreciation and amortization improved by 53 per cent to negative $4.8 million, from negative $10.2 million.
But net loss increased 550 per cent in the period to $26 million, from $4 million, which the firm said was due to impairment charges.
The company ended the quarter with $183.6 million in cash and short-term investments, as well as $300,000 in debt.
Company stock rose almost 9 per cent Tuesday to $2.58 on the Toronto Stock Exchange.
During the quarter, Organigram launched 16 new products on the recreational market — including Edison Jolts, an ingestible lozenge, and Shred’ems, an infused gummy.
The firm also boasted that its Shred pre-milled weed was the number-one most searched brand on the Ontario Cannabis Store website for 11 out of the past 12 months.
Organigram’s results show its momentum in leading innovation and increasing efficiencies, says CEO Beena Goldenberg.
“We are particularly pleased with our market share gains in the quarter to become a number-four LP and will build on these successes into fiscal 2022,” she said in a statement.
In May, former CEO Greg Engel stepped down from. In August, he was replaced by Goldenberg, former president and CEO of The Supreme Cannabis Company.