Organigram Lost $90M During Its Third Quarter
MONCTON- Organigram reported a 27 percent plunge in revenue during its third quarter (ending May 31, 2020) at $18 million while the cost of sales soared by more than 250 percent.
The Moncton-based cannabis producer had a net quarterly loss of almost $90 million.
CEO Greg Engel says the company significantly reduced its workforce during the pandemic which led to a number of product launch delays.
The company says Canada’s cannabis industry is highly competitive and oversupplied amongst both licensed producers and the still dominant black market.
Organigram cut 220 employees earlier this month in an effort to better match the current demand.
The producer noted how it had overbuilt and was overproducing not unlike its peers.
Meantime, the company signed its largest international deal yet in June to supply Canndoc Ltd., a large medical cannabis producer in Israel.
Going forward, Organigram will continue offering larger format sizes for dried flower, plans to launch new core strains with higher potency THC and is developing a powdered beverage cannabis product.
Allan Dearing is a news reporter with 91.9 The Bend, a Huddle content partner.