By Adriano Marchese
OrganiGram Holdings swung to a profit in its fiscal third quarter on the back of higher recreational cannabis sales.
For the three months ended June 30, the Canadian cannabis producer on Tuesday posted a net income of 2.8 million Canadian dollars ($2 million), compared with a loss of C$213.5 million in the comparable quarter a year ago when the company logged an impairment loss.
Adjusted earnings before interest, taxes, depreciation and amortization also swung to a profit, reaching C$3.5 million from a loss of C$2.9 million. Analysts were expecting a rise to C$700,000, according to FactSet.
Net revenue increased 25% to C$41.1 million, surpassing analyst expectations of a rise to C$39.4 million, largely due to an increase in recreational cannabis sales