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OrganiGram Holdings (TSX:OGI) Gross Margin % : 18.38% (As of Dec. 2023)


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What is OrganiGram Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. OrganiGram Holdings's Gross Profit for the three months ended in Dec. 2023 was C$6.7 Mil. OrganiGram Holdings's Revenue for the three months ended in Dec. 2023 was C$36.5 Mil. Therefore, OrganiGram Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 18.38%.


The historical rank and industry rank for OrganiGram Holdings's Gross Margin % or its related term are showing as below:

TSX:OGI' s Gross Margin % Range Over the Past 10 Years
Min: -65.08   Med: 60.28   Max: 415.42
Current: 10.86


During the past 10 years, the highest Gross Margin % of OrganiGram Holdings was 415.42%. The lowest was -65.08%. And the median was 60.28%.

TSX:OGI's Gross Margin % is ranked worse than
92.2% of 987 companies
in the Drug Manufacturers industry
Industry Median: 46.23 vs TSX:OGI: 10.86

OrganiGram Holdings had a gross margin of 18.38% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for OrganiGram Holdings was 0.00% per year.


OrganiGram Holdings Gross Margin % Historical Data

The historical data trend for OrganiGram Holdings's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

OrganiGram Holdings Gross Margin % Chart

OrganiGram Holdings Annual Data
Trend Apr12 Apr13 Apr14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -61.18 415.42 60.28 -65.08 -35.87

OrganiGram Holdings Quarterly Data
Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.33 55.14 24.82 -14.33 18.38

Competitive Comparison of OrganiGram Holdings's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, OrganiGram Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


OrganiGram Holdings's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, OrganiGram Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where OrganiGram Holdings's Gross Margin % falls into.



OrganiGram Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

OrganiGram Holdings's Gross Margin for the fiscal year that ended in Aug. 2021 is calculated as

Gross Margin % (A: Aug. 2021 )=Gross Profit (A: Aug. 2021 ) / Revenue (A: Aug. 2021 )
=-28.4 / 79.163
=(Revenue - Cost of Goods Sold) / Revenue
=(79.163 - 107.562) / 79.163
=-35.87 %

OrganiGram Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=6.7 / 36.455
=(Revenue - Cost of Goods Sold) / Revenue
=(36.455 - 29.755) / 36.455
=18.38 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


OrganiGram Holdings  (TSX:OGI) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

OrganiGram Holdings had a gross margin of 18.38% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


OrganiGram Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of OrganiGram Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


OrganiGram Holdings (TSX:OGI) Business Description

Traded in Other Exchanges
Address
145 King Street West, Suite 1400, Toronto, ON, CAN, M5H 1J8
OrganiGram Holdings Inc is engaged in producing indoor-grown cannabis for patients and adult recreational consumers in Canada. The company has also developed a portfolio of adult-use recreational cannabis brands including Edison, Big Bag o' Buds, SHRED, Monjour, Holy Mountain, and Trailblazer. Tremblant Cannabis, and artisanal craft brand, Laurentian are recent additions to Organigram's existing brand portfolio.
Executives
Donald Geoffrey Machum Director