MONCTON, N.B. — Cannabis company Organigram Holdings Inc. says its net revenues doubled to $25.2 million in the first quarter.
The company based in Moncton, N.B., says revenues were up from $12.4 million a year earlier.
Revenues included $16.7 million of sales to the adult-use recreational market and about $9.5 million to medical markets, partly offset by a $1.1 million provision for product returns and price adjustments.
The provision related to two slow-selling products sold to the Ontario Cannabis Store — a lower THC dried flower and THC oils.
Organigram’s loss from continuing operations was $863,000 or less than a cent per share, compared with a loss of $29.5 million or 19.5 cents per share in the prior year. That large loss was largely due to non-cash fair value changes to biological assets and inventories.
“Despite ongoing industry challenges, we are pleased with solid first quarter 2020 results and our return to positive adjusted EBITDA during the quarter,” stated chief executive Greg Engel.
He said the first vape pens were shipped as planned in December while premium cannabis-infused chocolates are slated to begin sales later in the quarter.
Sales of powdered products, to be added to a consumer’s beverage of choice, are expected in the second quarter.
Organigram said last November that its net revenue in the quarter would be higher than the $16.3 million in the fourth quarter due to increased sales to provinces and higher wholesale revenue.
The company said the Canadian cannabis market is poised for growth with more retail store openings planned in Ontario and Quebec, two provinces that together account for more than 60 per cent of the country’s population.
In particular, Ontario is moving to open more retail stores with approvals to be issued in April at an initial rate of about 20 per month.
“This is expected to set the stage for further growth for Organigram and the industry,” the company stated in a news release.
Quebec also plan to double the number of stores and Alberta’s network of 375 stores will continue to grow to meet consumer demand.
Legalization of edible and derivative products is also expected to significantly expand the legal market although Newfoundland & Labrador, Quebec and Alberta have announced delays or restrictions on the launch of vaporizable products.