Organigram Holdings Inc. OGI OGI reported Tuesday that gross revenue decreased by 29% year-over-year to roughly CA$19.3 million ($15.4 million) in the second quarter of fiscal 2021.
Net revenue also declined over the same period, from CA$23.2 million to CA$14.6 million, the Moncton, New Brunswick-based company said in a statement.
The second-quarter results were "challenged by industry dynamics, COVID-19 and staffing limitations at our facility," CEO Greg Engel said in a statement.
Yet "there are excellent prospects ahead for the industry, Organigram and our shareholders," he added.
Organigram Financial Highlights
- The second-quarter gross margin came in negative, at CA$17.2 million, representing a year-over-year decrease of 252% from the positive CA$11.3 million reported in the same quarter last year.
- The net loss amounted to CA$66.4 million, up from CA$6.8 million in the corresponding quarter of 2020.
- Adjusted EBITDA (a non-IFRS financial measure) was a negative CA$8.6 million, compared to a CA$59,000 loss in the second quarter of 2020.
- Selling, general and administrative expenses, excluding non-cash share-based compensation, were CA$11.1 million for the quarter, compared to some CA$14 million in the same period last year.
Organigram anticipates third-quarter revenue to exceed second-quarter results and said it's "improving demand fulfillment with increased staffing."
Management also expects to boost revenue growth through the enhanced production of soft chews and other confectionery products from its Winnipeg Edibles & Infusions facility.
Recent Organigram Operational Milestones
Last week, Organigram purchased The Edibles & Infusions Corp. (a soft chew manufacturer co-founded by AgraFlora Organics International Inc. AGRA and Cavalier Candies CEO James Fletcher) for CA$22 million.
The tobacco giant opted to buy some 58.3 million shares of Organigram's subsidiary at CA$3.792 each, representing a 19.9% equity interest.
Shares of Organigram traded down by more than 0.5% at the time of the writing of this article.
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