Canada-based Organigram Holdings Inc. (OTC: OGRMF) saw triple-digit revenue growth for the first quarter of fiscal 2019 ended Nov. 30, 2018. The results were largely impacted by the full legalization of weed on Oct. 17, and the company expects the adult-use market to dominate its top line for the rest of the fiscal year.
What Happened
Organigram Holdings said its revenue for the quarter amounted to CA$12.44 million ($9.39 million). This represents an increase of 287 percent sequentially and 419 percent compared to Q1 2018.
The company said the revenue was largely impacted by the legalization of adult-use cannabis, even though it occurred in the middle of the quarter.
Organigram turned net income of CA$29.5 million, or CA$0.195 per diluted share from a loss of CA$1.2 million or CA$0.012 per share a year earlier.
Organigram reduced its cost of cultivation, an important metric for cannabis companies.
View more earnings on OGRMF
In Q1, Organigram's cash cost per gram of dried flower stood at CA 56 cents, down from CA 62 cents a quarter earlier. The all-in cost of cultivation also fell to CA 74 cents from CA 83 cents quarter-over-quarter.
Why It's Important
Investors are paying attention to the results that cannabis companies are reporting for the first quarter since legalization, since it shows the impact that legalization had and what to expect going forward.
What's Next
For the rest of fiscal 2019, Organigram said it expects its revenue to be mostly dominated by adult-use sales. For the current quarter, the company anticipated revenue to at least double from the previous one.
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