Inside Organigram's Moncton facility. (Staff photo)
Organigram was heavily impacted by COVID-19 in their second fiscal quarter of 2021, recording a 37% drop in net revenue compared to the same period last year. The Moncton-based cannabis producer reported a net revenue of over $14.6 million on Tuesday morning.
The company’s ability to meet demands was affected when an employee tested positive for the virus in a Moncton facility.
As a result, staff had to isolate, and the grounds had to be disinfected, halting the production operations.
In addition, a lower interest from wholesale buyers and a decision by some provinces to manage less product left a lot of pressure on individual consumers.
“Although Q2 2021 results were challenged by industry dynamics, COVID-19 and staffing limitations at our facility, we believe there are excellent prospects ahead for the industry, Organigram and our shareholders,” said Greg Engel, Chief Executive Officer of Organigram.
The second quarter did feature multiple highlights, including an investment deal with British American Tobacco and most recently, the acquisition of all the issued and outstanding shares of The Edibles & Infusions Corporation.
Now with eyes set on the next quarter, Organigram looks to position itself for a rebound featuring new products.
“We are currently tracking to generate higher revenue in Q3 2021 as our new product portfolio continues to gain traction and we become better staffed to fulfill demand,” says Engel
Among them are new vape products with higher THC concentrations and additional high THC strains under the Edison brand. The target date for sales of soft chews is not expected to occur before the fourth quarter.
The optimism does come with hesitancy due to the evolving situation surrounding the COVID-19 variants.
New Brunswicks continued battle against the virus has the potential to affect the production line again if another case reaches the facilities.
Organigram also faces a possible decrease in demand, with large markets such as Ontario facing tight restrictions with COVID-19 cases surging.
The net revenue for Organigram was $ 18 million in the 2020 third fiscal quarter.
