Organigram revenue soars in first full quarter
Cannabis producer Organigram Holdings Inc. swung to a loss of $6.4 million in its latest quarter as its revenue soared in its first full quarter of adult-use recreational sales.
The Moncton, N.b.-based company saw revenue rise sharply to $26.9 million during the three-month period ended Feb. 28, up from $3.4 million a year earlier and topping estimates.
however, Organigram’s cost of sales also spiked to $10.9 million, compared to $1.8 million during the same period a year ago.
Chief executive Greg engel said various factors contributed to the increase in cost, including additional staff as it moved to roundthe-clock production. he also cited Organigram’s move to supply more pre-rolled joints, which are costlier to produce.
“That was a strategic initiative of ours, there is a demand and an unmet need for pre-rolls out there ... It’s a way to get as much of our product in consumers’ hands,” he said.
Its latest revenue numbers beat street expectations of $23.77 million, according to analysts surveyed by Thomson reuters eikon.
however, the cannabis producer’s earnings per share fell short of analyst expectations.
The company says its loss amounted to five cents per diluted share for the quarter, compared with a profit of $1.1 million or a penny per diluted share a year earlier. Analysts had expected earnings of one cent per share during the quarter.
Shares of Organigram closed down about 10 per cent on the TSX Venture exchange Monday at $8.44.