Organigram trims loss to CA$2.8 million as cannabis sales surge

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Canadian cannabis producer Organigram trimmed its loss to 2.8 million Canadian dollars ($2.1 million) for the quarter ended May 31 on record gross revenue of CA$55.2 million. 

The New Brunswick company recorded a net loss of $CA4.0 million in its fiscal third quarter a year ago.

Organigram said Thursday its CA$38.1 million net revenue for its third quarter was the highest it has achieved to date, giving the company the No. 3 market share position in Canada.

Gross adult-use revenue in the quarter doubled compared to the previous year to CA$51.4 million. 

International wholesale sales jumped to CA$1.4 million in the March-May quarter verus CA$72,000 in the same period last year. 

“We are pleased to see continued strength in our recreational business with our increasing market share,” CEO Beena Goldenberg said in the news release.  

“We achieved record net revenue results which we expect to surpass again in Q4 on the strength of new product listings, increased retail sales momentum and international shipments.”

By product category, Organigram’s net recreational third-quarter sales included: 

  • Oil: CA$13,000 (down 84% versus a year ago).
  • Flower: CA$24.9 million (up 55%).
  • Vapes: CA$1.5 million (up 182%).
  • Hash: CA$2.5 million (zero sales a year ago).
  • Ingestible extracts: CA$1.8 million (zero sales a year ago).

Revenue from recreational edibles contributed meaningfully in the quarter, coming in at CA$3.9 million versus CA$171,000 in the same three months last year. 

Wholesale sales in the third quarter amounted to CA$983,000, down from CA1.5 million a year earlier. 

Sales in Organigram’s medical channel dipped slightly to CA$2 million. 

The New Brunswick company said it’s shifting its medical strategy because industrywide medical sales are forecast to fall 18% this year to CA$407 million, and the number of medical patients also is expected to decline further. 

“With this projected decline, largely due to migration to the recreational channel, Organigram has shifted its medical strategy and will focus on the important veteran community all while continuing to serve its civilian patient base with superior patient care and an ongoing portfolio optimization,” Organigram said in a regulatory filing. 

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“The main change to the company’s strategy is the termination of its existing agreements with the majority of cannabis clinics aimed at patient acquisition.”

Organigram had CA$127 million in cash and short-term investments as of May 31.

Organigram shares trade as OGI on the Nasdaq exchange and the Toronto Stock Exchange.