07:00 AM EDT, 08/13/2024 (MT Newswires) -- Organigram Holdings ( OGI ) , a licensed producer of cannabis, was at last look up 4.9% in U.S. premarket trade Tuesday as it swung to a surprise net profit in the third quarter compared to a big loss in the year earlier period.

The company reported net income of $2.8 million, compared to a loss of $213.5 million in prior-year period and compared to the $7.94 million loss forecast at Capital IQ.

Organigram ( OGI ) attributed the better results primarily to higher revenues from recreational cannabis revenue in Q3 Fiscal 2024, as well as an impairment loss recorded in last year's third quarter.

Net revenue increased by a quarter to $41.1 million, from $32.8 million, primarily due to an increase in recreational cannabis sales. It beat a Capital IQ consensus forecast of $39.24 million.

The company had a pro-forma cash position of $173 million.

"Our strategic investments and partnerships, both domestically and internationally, have positioned us for growth and diversification, particularly in the European market with our investment in Sanity Group," said Chief Executive Beena Goldenberg.