Organigram Discloses Net Loss of Almost $7M In Q2

Canadian cannabis company Organigram Holdings Inc. OGI OGI reported Tuesday its second-quarter net revenue of $23.2 million, versus $26.9 million in the same quarter of 2019.

Its gross margin was of $11.3 million, which compares to a gross margin of $8 million in the second quarter of 2019.

For the quarter, Organigram also disclosed a net loss of $6.8 million or a loss of $0.041 per diluted share, compared to a net loss of $6.4 million or a loss of $0.049 per share in the corresponding period of the prior year.

The company reported a negative adjusted EBITDA of $1.1 million, which compares to a positive adjusted EBITDA of $13.3 million.

Adjusted EBITDA was mostly affected by higher cost of sales and SG&A expenses, the company said.

“Our second quarter results reflect continued execution despite ongoing industry challenges,” CEO Greg Engel said in a statement. “We introduced new products such as our Edison Bytes chocolates, Edison Limelight dried flower and Trailblazer vape pens and continue to elevate the Canadian consumer’s cannabis experience. These products have been well received with strong customer demand to date and we look forward to further roll-outs in the space.”

Organigram’s shares were trading 3.45% lower at $1.54 per share on Wednesday morning.

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