After hitting it out of the park in the first quarter of its fiscal 2020, OrganiGram Holdings (NASDAQ:OGI) whiffed during the second. On Tuesday, the cannabis company released its quarterly update, reporting net revenue of 23.2 million Canadian dollars.
That was a decline from the CA$26.9 million in revenue it reported during fiscal Q2 2019, and a decrease of CA$2 million from fiscal Q1 2020. OrganiGram attributed the decline to several factors, including "lower recreational flower and oil sales volumes," and a lower average selling price due to increasingly competitive conditions in the marijuana industry.
The company's net revenue from the sale of recreational (adult-use) cannabis increased by 16% sequentially to CA$15 million. OrganiGram also reported a net loss of CA$6.8 million -- or CA$0.041 per share -- during its second quarter, which is significantly worse than the CA$900,000 net loss it recorded during its first quarter. OrganiGram's shares slid by almost 12% in trading Tuesday after the company released its financial results.
OrganiGram also announced other important news, including the launch of several cannabis-derivative products, including Edison Bytes, a cannabis-infused premium chocolate that contains either 5mg or 10mg of THC per piece. According to OrganiGram, its derivative products have been "well-received," and the cannabis company is looking forward to launching more of them in the not-so-distant future.
Naturally, OrganiGram management mentioned the ongoing COVID-19 pandemic. The company recently took several measures to protect the health of its employees at its Moncton facility, including temporarily laying off 45% of its workforce and directing those employees who can work from home to do so. Despite the decrease in its workforce, OrganiGram said in its quarterly update that it expects to be able to meet the demand for its products in the short term thanks to inventory already available.