Cannabis Earnings Season Is Heating Up… – Technical420
The earnings season for the cannabis sector is in full swing and we consider this to be a pivotal time for the industry.
Over the course of the next month, several major North American cannabis companies are expected to report earnings. We believe our readers should be aware of these upcoming reports, and we are particularly interested in what Canopy Growth Corporation (Nasdaq: CGC) (TSX: WEED) has to report.
Today we highlighted three companies that have previously released quarterly financial results and provided key insights from the reports.
Org Chart Holdings
A few weeks ago, Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) released its first quarter financial results and the market reacted positively to the report. Today we’d like to provide more information on Organigram’s earnings report and highlight 5 key takeaways from the quarter:
During the quarter, Organigram generated $43.3 million in revenue. This is significantly more than the $30.4 million in revenue for the same period last year and we are positive about the increase. . In the future we will see how this aspect of the business develops. Organigram delivered positive Adjusted EBITDA for the fourth consecutive quarter, and we believe this trend is significant. Compared to the year-ago quarter, Organigram saw its adjusted gross increase 12% in Rand. The management team attributed the increase to improved efficiency and higher sales volume. As of November 30, the Canadian cannabis producer reported having more than CA$95 million in cash and short-term investments.
Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BU0) recently released preliminary fourth quarter results, posting record results in several categories. Some key takeaways from the preliminary results report are:
The Canadian cannabis company expects gross sales (preliminary and unaudited) for the fourth quarter to be approximately $8.8 million. It expects full-year sales of $22.6 million. During the quarter, Avant Brands produced approximately 1,752 kilograms of cannabis and sold approximately 1,471 kilograms of cannabisAvant Brands expanded in Canada and entered new provincial markets (ie, Newfoundland and Labrador and Prince Edward Island). During the year, the Company completed 9 export shipments of approximately 1,284 kilograms of cannabis to Israel and Australia. Avant Brands is focused on expansion and has entered into an agreement to acquire 100% of 3PL Ventures. Previously the company owned 50% of 3PL and we will monitor how the transaction benefits the company.
Earlier in January, Tilray Brands Inc. (Nasdaq: TLRY) (TSX: TLRY) reported second-quarter financial results, and we believe the company has achieved several key milestones since its merger with Aphria in 2021. Some key takeaways from Tilray Brands’ earnings report include:
According to the earnings report, Tilray Brands holds a leading position in Canada with an 8.3% market share in cannabis. Beverages were a key growth industry for the cannabis company, as sales soared 56% to $21.4 million (compared to the same period last year). This amount included income from acquisitions. Tilray Brands generated Adjusted EBITDA of $11.7 million for the quarter. This marks the 15th consecutive quarter of positive Adjusted EBITDA for the Canadian cannabis company. To date, Tilray Brands has realized $119.6 million in annual cash cost savings since closing the Aphria transaction in May 2021. $108 million as of August 31, 2022. As of November 30, Tilray Brands reported having more than $430 million in cash, cash equivalents and marketable securities.
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This article contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, programs, projections, projections, goals, assumptions, expectations or beliefs regarding future performance are “forward-looking statements.” Forward-looking statements are identified by the use of words such as “expects”, “does not expect”, “expects”, “believes”, “intends”, “anticipates”, “does not expect”, “believes”. or variations of such words, phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments anticipated, expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, dependence on obtaining and maintaining governmental approvals, including the acquisition and renewal of federal, provincial, state, local, municipal or other licenses, and the inability to obtain all necessary governmental approvals obtain permits and licenses and permits to operate and expand Company facilities; regulatory or policy changes such as changes in applicable laws and regulations, including legalization at the federal, state and provincial levels, due to fluctuations in public opinion, industry perceptions of integrative mental health, including the use of psychedelics-assisted therapy, delays or inefficiencies or other reason; any other factors or developments that may impede the growth of the market; the Company’s limited operating and profitability record; dependence on management; the Company’s need for additional financing and the impact of financial market conditions and other factors on the availability of capital; competition, including established and better funded competitors; the impact of the Russia-Ukraine conflict on the global economy; the ongoing impact of the COVID-19 pandemic; and the need to form and maintain alliances and partnerships, including with research and development companies, customers and suppliers. These factors should be considered carefully and readers are cautioned not to place undue reliance on any forward-looking statements. Despite the Company’s efforts to identify the main risk factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, other risk factors may cause actions, events or developments to differ materially from those anticipated, estimated or deviate provided. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in the forward-looking statements. The Company undertakes no obligation to revise any forward-looking statement, whether as a result of future events, new facts or otherwise, new information becomes available, except as required by applicable law
Written by Michael Berger
Michael Berger is a Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an equity research analyst at Raymond James Financial, covering the energy sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News and hosts various cannabis events across North America.