Organigram Sees 27% YoY Revenue Decline

Organigram Holdings Inc. OGI OGI has posted its third-quarter results for fiscal 2020.

According to a Tuesday's update, the Moncton, New Brunswick-based company saw a year-over-year revenue drop of around 27% to $18 million.

Organigram's priority following the coronavirus onset was its employees' health and safety, according to CEO Greg Engel.

This prioritization, however, resulted in a "significantly reduced workforce which contributed to a number of product launch delays, including our initial large format value offering, which affected opportunities to potentially capture significant market share and sales in dried flower," Engel added.

Earlier this month, the company laid off 220 employees.

Third-Quarter Breakdown

• Negative gross margin of $50.2 million, versus a negative gross margin of $0.2 million in the corresponding quarter of 2019
• Cost of sales amounted to $44.4 million, up by 244% compared to the same period last year
• SG&A of $10.3 million in comparison to the $9.1 million in the third quarter of 2019
• Negative adjusted EBITDA of $24.7 million, compared to third-quarter adjusted EBITDA of $7.7 million
• Net loss of $89.9 million, a year-over-year increase of 781%
• Positive cash flow from operations of $8.5 million

Other quarterly highlights include launching of its first value offering of dried flower in a size format of 28g, and inking of a multi-year international strategic deal with InterCure Ltd.'s subsidiary Canndoc Ltd. to supply Israel's cannabis producer with up to 6,000 kilograms of dried flower, to name a few. 

Courtesy photo