Canadian cannabis company OrganiGram Holdings Inc. /zigman2/quotes/209289540/composite OGI -1.59% said Tuesday it had a net loss of C$6.8 million ($4.9 million), or 4.1 cents a share, in its fiscal second quarter to Feb. 29, wider than the loss of C$6.4 million, or 4.9 cents a share, posted in the year-earlier period. Revenue fell to C$23.2 million from C$26.9 million. The FactSet consensus was for a loss of 2 cents and sales of C$24.9 million. Revenue fell due to lower recreational flower and oil sales volumes compared with the year-earlier period, when the timing of large pipeline fill orders to Alberta and Ontario occurred, and lower prices due to increased competition. The company also took a provision for returns and price adjustments relating to cannabis oil. That was partly offset by the first products launched as part of Cannabis 2.0, the second wave of legalization in Canada involving edibles and other derivatives. Cost of sales rose to C$15.8 millin from C$10.9 million as it launched vapes and chocolates and took inventory provisions and write-offs of about C$1.3 million. The company said it temporarily laid off abut 45% of its workforce to help contain the spread of COVID-19, or about 400 employees. "The company believes it has sufficient inventory levels to supplement reduced harvest plans and enough contingency staff to keep packaging capacity intact in order to meet anticipated demand in the short-term," it said in a statement. OrganiGram had C$41.2 million in cash and short-term investments at quarter-end, and C$96.8 million of working capital. It had about C$85.2 million in long-term debt at quarter-end and a C$25 million revolving credit facility. U.S.-listed shares rose 2.2% premarket but are down 26% in the year to date, while the ETFMJ Alternative Harvest ETF /zigman2/quotes/204332491/composite MJ -2.07% has fallen 33% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.25% has fallen 15%.
An earlier version of this report had an error in the loss per share numbers. It has been corrected.