OrganiGram Holdings Reports Disappointing Fiscal Second-Quarter Results

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.

Source Fool.com