Canadian cannabis company Organigram Holdings (OGI -0.75%) reported its second-quarter fiscal 2022 earnings today, and investors liked what they saw. The results from the quarterly period ended Feb. 28 have Organigram shares trading 9.4% higher as of 10:44 a.m. ET.
Organigram said it had record net revenue of $31.8 million, up 117% compared to the prior-year period. It also expects another quarter of record net revenue in its next quarter because of increased capacity and throughput along with "ongoing sales momentum, stronger forecasted market growth, [and] the company's expanded product line in multiple segments." Net revenue is gross revenue less excise taxes paid.
Also importantly for investors, the company achieved positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Organigram said it hit that goal two quarters ahead of its initial estimates.
Management highlighted the fact that the company increased its market share among Canadian licensed producers to 8.2% in February. That moves it into the top three positions in market share, up one spot from the prior quarter, when its market share was 7.5%.
The company is working to grow its position even further, launching 18 new products in the quarter. Organigram CEO Beena Goldenberg said in a statement, "We expect that leveraging these brands will allow us to continue to drive market share." Organigram is also growing internationally. The company had record quarterly international shipments in the quarter.
While Organigram still reported a net loss, it was a major improvement compared to the year-ago period. Rising gross margins and higher sales helped it reduce its net loss to $4.0 million, versus $66.4 million last year.
Investors are showing appreciation for the progress and potential going forward, pushing shares higher today.