Organigram shares nosedive after Q4 update shows declining sales, negative EBITDA

[gb123]

Shares of Moncton-based cannabis producer Organigram plunged on the Toronto Stock Exchange on Tuesday after the company unexpectedly issued preliminary fourth-quarter results a day earlier. The company now says it will report $16.3 million in net revenue for the quarter ended Aug. 31, down from $24.8 million in its prior quarter. The lower revenue is also expected to result in negative adjusted EBITDA (earnings before interest, tax, depreciation and amortization), ending a stretch of three consecutive periods of positive cash flow. Organigram attributes the decline in sales to a sluggish national retail rollout, specifically the “slower than expected store openings in Ontario” as well as “increased industry supply”. Jefferies analyst Owen Bennett says the fears of oversupply or price compression in the industry are “likely overdone” and remains bullish on Organigram’s prospects despite the “disappointing” update. The company will report its full results for its financial year on Nov. 25.

 

[gb123]

 

[chex1111]

Shares of Moncton-based cannabis producer Organigram plunged on the Toronto Stock Exchange on Tuesday after the company unexpectedly issued preliminary fourth-quarter results a day earlier. The company now says it will report $16.3 million in net revenue for the quarter ended Aug. 31, down from $24.8 million in its prior quarter. The lower revenue is also expected to result in negative adjusted EBITDA (earnings before interest, tax, depreciation and amortization), ending a stretch of three consecutive periods of positive cash flow. Organigram attributes the decline in sales to a sluggish national retail rollout, specifically the “slower than expected store openings in Ontario” as well as “increased industry supply”. Jefferies analyst Owen Bennett says the fears of oversupply or price compression in the industry are “likely overdone” and remains bullish on Organigram’s prospects despite the “disappointing” update. The company will report its full results for its financial year on Nov. 25.

Getting harder to hide the fraud. I wonder how long the "unfinished inventory," thing will last. Better get Alister Crowley on the phone to preform some alchemy. Or, polish hard till the turd turns into a gold nugget.

 

[CalyxCrusher]

It's almost like there was no supply shortage a few months ago given the numbers we see here...............weird....

 

[tommarijuana]

Their never was a shortage,imho..people just aren't buying their overpriced boof

 

[westcoast420]

There was always a surplus, they just tried to cover it up for as long as possible.

 

[The Hippy]

Wrap your head around how much stale years old weed they must be saving in the vaults.....hahahahahaha
Thinking it will age like cheese and they can get $20 bucks a gram for it from downtown Toronto condo owners.

 

[CalyxCrusher]

Their never was a shortage,imho..people just aren't buying their overpriced boof

I know. Been saying it from day 1

 

[c ray]

the unfinished inventory is probably mostly shake and non marketable weed destined for extraction. a friend in the industry told me the company he works for extracts moldy bud, buyer beware.

 

[gb123]

There was always a surplus, they just tried to cover it up for as long as possible.

x 1000 on that