Organigram Holdings Inc. (NASDAQ: OGI) is the parent company of the leading licensed cannabis producer known as Organigram. The company recently announced its Q3 results for 2021.
The company’s Chief Strategy Officer, Paolo De Luca, said that they were pleased they managed to grow both their gross and net revenue in the third quarter. He believed this was because of the better staff they had to meet the demands of the company’s revitalized product portfolio. He said that the ongoing investments in the cultivation and genetics program have resulted in some new and exciting dried flower products that consist of more genetics. They are experiencing higher sales trends in the fourth quarter
Q3 key financial results
- Net Revenue- the net revenue increased this year because of increased recreational adult-use revenue (a growth of 40% to $16.8 million and a bump of 10% from the prior year). However, the recreational adult-use net revenue in Q3 2020 was reduced due to provisions for pricing adjustments product returns of around $3million.
- Gross Revenue- The gross revenue increased in the third quarter of 2021 because of the same factors that affected net revenue as described in brief above. As a result, the gross revenue grew by 51% to $29.1 million in the third quarter of 2021.
- Cost of Sales- There was a reduction in the cost of sales because of the nearly $30 million in inventory provisions and write-offs, as well as charges associated to a reduced staff because of the pandemic.
Research and product development
The company made the CoE launch announcement at its Moncton facility. It established the CoE to concentrate on the development of next-gen cannabis products, initially focusing on CBD. As BAT and Organigram continue to plan the path the CoE is going to take, a few key positions have popped up. Some of these include innovation-focused roles like product developers and scientists.
As well, there’s an expected increase in the number of employees that’ll be needed. A steering committee will do the supervision and governance of the CoE made up of senior members from BAT and Organigram. Both companies will also have access to certain parts of each other’s IP (intellectual property) to help them work together seamlessly.