OrganiGram Holdings (TSX-V:OGI) is showing good momentum heading into 2023 after the biggest international sales numbers in the cannabis company’s history.
Net revenues came in at $45.5 million in its fiscal 4Q, up 19.4% sequentially, and above consensus estimates of $42.8 million, driven by $6 million in international sales, up from $1.3m in the third quarter of 2022.
Analysts at Stifel GMP wrote that the most recent results demonstrate good momentum and a “bright outlook.”
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“Robust sequential sales growth was supported by the greatest international sales generated in company history. It seems this high margin source could be sustainable as management guided for higher sequential international revenue in FY23 given its recently announced multi-year agreement with Canndoc in Israel for up to 20 tonnes of dried flower,” Stifel analysts wrote.
“Matched with production capacity expansions now bearing fruit given previous capacity constraints, management is guiding to generate positive operating cash flow in full year 2023 and an even greater focus, positive free cash flow during current year 2023.”
However, analysts noted that Organigram’s full year 2023 outlook was “light on details,” but noted the firm expects to improve revenue, gross margin, adjusted earnings (EBITDA) and cash flow in the coming financial year.
Shares of Organigram were up 6.1% in Toronto at C$1.39 and around 3% in after hours trading in New York at US$1.03.
Contact Angela at angela@proactiveinvestors.com
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