NEWS BRIEF Canadian cannabis firm Organigram reports CA$136M loss for year
Published 4 hours ago
New Brunswick-based cannabis producer Organigram reported a net loss of 136 million Canadian dollars ($105 million) for its fiscal year 2020, a substantial increase from the company’s previous annual loss of CA$9.5 million.
Organigram lost CA$39 million in the quarter ended Aug. 31, an improvement compared to the CA$90 million loss it reported in the quarter ended May 31.
Net revenue in the quarter was CA$20.4 million, up 13% compared to the previous quarter. Like other Canadian marijuana producers, Organigram is being forced to write off some of its excess inventory.
In Q4, write-offs of “excess and unsaleable” inventory reached CA$11.1 million – 75% of which was “related to excess trim and concentrate,” it said in a regulatory filing.
Canadian producers are sitting on a mountain of inventory. Industry-wide inventory of extracts such as vape pens, hash and softgels exceeded 10 million units in August, compared to sales of only 1.4 million units.
By segment, Organigram reported revenue of:
CA$74 million of adult-use wholesale in the year, down from CA$85 million in 2019. CA$10.7 million of medical in fiscal 2020, down from CA$11.2 million in 2019. International revenue in the fiscal year was CA$3.3 million, an increase from CA$98,000 in the previous year.
In a conference call with analysts, CEO Greg Engel said the company could start to increase production.