Organigram expects full-year net revenue to exceed C$350 mln
Company anticipates adjusted gross margin and adjusted EBITDA to surpass fiscal 2025 levels
Organigram expects positive free cash flow in Q4 despite modestly negative free cash flow for the full year
Result drivers
Sanity Group acquisition - Co said record Q3 revenue and adjusted EBITDA were primarily driven by contributions from Sanity Group
International sales - Co said higher proportion of international sales from Sanity Group helped boost adjusted gross margin
Operational efficiencies - Co said improved operational efficiencies and targeted product portfolio changes supported Canadian market performance
Key details and analyst coverage
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$105.78 mln
C$98.75 mln (5 Analysts)
Q3 Gross Revenue
C$145.07 mln
Q3 Net Income
C$105.54 mln
Q3 Adjusted EBITDA
C$13.41 mln
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for Organigram Global Inc is C$3.25, about 127.3% above its August 10 closing price of C$1.43
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 20 three months ago
Q3 revenue beats on Sanity acquisition
Canada cannabis producer's fiscal Q3 net revenue rose 49% yr/yr, beating analyst expectations
Adjusted EBITDA more than doubled yr/yr, reflecting Sanity Group acquisition and operational gains
Company attributed record results to Sanity Group acquisition and improved Canadian operations
“I would also like to recognize Paolo De Luca, who will be departing Organigram after nine years of exceptional leadership and service," said James Yamanaka, Chief Executive Officer
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