- Organigram’s Q3 results marked its fourth quarter in a row of positive adjusted EBITDA*
- A Bloomberg article states that the company is an outlier due to its high margins and low production costs
Organigram Holdings Inc. (TSX.V: OGI) (NASDAQ: OGI) stands out from other Canadian cannabis companies due to the fact that it has registered four quarters of positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), as a Bloomberg article about the enterprise reads (http://cnw.fm/sBS4g). Adjusted EBITDA is a non-IFRS measure. For more information, see the company’s latest MD&A.
Organigram’s Q3 and fiscal year-to-date results represent some of the strongest operating and financial metrics amongst Canadian licensed producers. With one of the lowest cultivation costs per gram and continued discipline on selling, general and administrative expenses, Organigram’s results place it in the top tier of the Canadian industry.
As per the Bloomberg article, Organigram’s sustainable profitability is an outlier due to the fact that the industry has been experiencing some negative developments. Regulatory measures have been undertaken in Canada against some of the cultivators to ensure compliance. Other firms have been registering lower than expected sales, significant negative adjusted EBITDA and shrinking margins in recent quarters.
Recently, Organigram announced that it has received Health Canada approval for the licensing of its phase 4A, for total licensed production capacity of 61,000 kilograms annually (http://cnw.fm/VeVR3). The entire phase 4 expansion is expected to be completed by the end of 2019 and aims to increase target production capacity to 113,000 kg/year, once licensed and fully operational.
* Cultivation cost per gram is a non-IFRS measure. Please see the Company’s latest MD&A.
For more information, visit the company’s website at www.Investors.Organigram.ca
NOTE TO INVESTORS: The latest news and updates relating to OGI are available in the company’s newsroom at http://cnw.fm/OGRMF
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