It’s always nice to see one’s hard work pay off in dividends. In the case of Canada-based cannabis producer Organigram Holdings, they have been enjoying the fruits of their labor. The company is reporting a greatly improved fiscal third quarter, with its revenue rebounding to 20.3 million Canadian dollars ($16 million USD), up around 40% over the previous 90 day period. Organigram Holdings even saw improvement in their net losses as well, with the company’s loss of $4 million CAD in the quarter ending May 31st, a massive improvement over the previous quarter’s $66.4 CAD million loss.
Over the first nine months of its current fiscal year, the marijuana producers lost roughly $104.7 million CAD. The improved quarter was a product of the increase in adult-use cannabis sales, whether it be a surge in rolling papers purchased along with their cannabis or what have you, which also grew 40% over the second quarter to $ 16.8 million CAD. The company’s CFO Derrick Wester said, “On the expenses front, we are encouraged by the progress we have made in reducing cultivation costs and capturing economies of scale as we ramp up cultivation.”
With the company’s newfound profits and success, Organigram said it expects to generate more new revenue from the launch of its soft-chew products in the fourth quarter, in which it will definitely have to invest in some resealable edible bags. The company believes sales will continue to rise due to market growth as Covid-19 restrictions lift around Canada. The number of retail stores continues to grow in most major markets and they are better equipped to fulfill demand with increased staffing. It’s great to see a cannabis business thrive such as Organigram as it puts into perspective just how lucrative the marijuana industry really is.