Trade To Black: Organigram Q3 Beats Expectations, Ascend Partnership
Top 3 Takeaways from Ascend Partnership and Organigram Q3 earnings:
- Ascend Wellness and Curio Wellness entered a mutually beneficial partnership to expand the footprint of branded products. CEO John Hartmann explains how it works.
- Q3 earnings for Organigram beat analyst expectations with an increase in revenue of 25% YOY and a gross margin of 36%.
- Most importantly, the company turned around last year’s $213.5 million dollar loss in the same period to a net income of $2.8 million.
Welcome to TDR’s Trade To Black podcast for Wednesday, August 14, 2024. Hosts Shadd Dales and Anthony Varrell are discussing cannabis earnings results and an announcement from Monday this week. Today, we welcome Beena Goldenberg, CEO of Organigram (NASDAQ: OGI), and John Hartmann, CEO of Ascend Wellness (OTC: AAWH) to the show.
Beena Goldenberg has joined us to talk about Organigram’s latest earnings for Q3 and the main reasons why they beat analyst expectations. Revenue increased 25% year-over-year to $41.1 million and this top-line increase is paired with an adjusted gross margin of $14.6 million, or 36%, a notable improvement from last year’s 19% margin, showing the company’s focus on operational efficiency. The company posted a net income of $2.8 million, a dramatic turnaround from the staggering $213.5 million loss in the same period last year.
Goldenberg shares the 3 key things that were the main reasons for their growth.
Ascend Wellness CEO John Hartmann joins us again on the podcast to talk about Monday’s announcement involving their agreement with Curio Wellness. Hartmann says this agreement is a tribute to the team for pulling the partnership together. Ascend will take on the manufacturing and distribution of Curio’s award-winning products in Illinois, New Jersey, and Massachusetts. In return, Curio will manage the production and distribution of Ascend’s Ozone products in Maryland and Missouri.
Also, the state of Ohio is eight days into adult recreational cannabis sales. How are the numbers looking? We’ll talk about that too on this episode of Trade to Black.