Investors in the North American cannabis market have to search for the positive signs. Are there any indicators of a turnaround? Anywhere? Somewhere?
One glimmer of positivity is sales growth.
So, let’s take a look at one marijuana stock that has registered the highest year-over-year growth in sales: OrganiGram Holdings (NASDAQ:) (TSX:).
This Canadian-based marijuana grower, founded in 2013, had a 118% increase in sales growth, according to its latest , making it the leader in this category among pot stocks trading on the .
Shares of the company, however, have not fared as well. The stock closed yesterday at US$1.080 in New York, down more than 5.5% on the day, and C$1.35 in Toronto, down about 3.5%. Year-to-date in 2022, the stock is down about 40%, and just over 63.5% in the last year.
Rising sales figures are one measure of a grower’s ability to increase revenue organically. But how improved sales figures are contributing to profitability is a key metric to watch as well.
The company’s net income has improved, but it has yet to reach profitability. Its net revenue last quarter stood at C$4.05 million (USD$3.6M).
In OrganiGram’s case, one of the contributors to its increased sales is a deal it struck in June 2020 that gave it access to the international market.
The marijuana grower, which began as a medical cannabis producer, today grows for both the medical and recreational markets. Two years ago, it inked a deal to supply dried cannabis flower to largest medical cannabis company in Israel.
Canopy Hits 52-Week Low
The bad news keeps chipping away at Canopy Growth shares (NASDAQ:) (TSX:).
Earlier this week, the Canadian-based cannabis grower was one of only two stocks on the to hit a 52-week low.
The marijuana company has lost 11.8% in the past week and almost 51% so far this year.
Canopy Growth Weekly Chart.
Yesterday, the stock closed at US$4.09 on NASDAQ, down 5.3% on the day, and C$5.13 on the TSX Composite, down 5.35% on the day.
The stock has now lost more than 82% in the last 12 months.
Pot Sales Up in Canada
Here is a quick stat for you, from the land of legalized pot.
A total of C$10.54 billion was generated in cannabis sales in the first quarter of 2022 on an annualized basis, according to Statistics Canada.
The figure represents a 7.9% increase compared with the previous year, the data shows.