MediPharm Labs Corp. LABS MEDIF MLZ announced on Monday its financial results for the three months ended Sept. 30, 2022.
The Canadian cannabis company grew its third-quarter sales quarter-over-quarter while reducing working capital. Subsequent to the quarter MediPharm completed the previously announced sale of MediPharm Labs Australia Pty Ltd for AUD$7.25 million ($4.85 million).
“We grew sales on a sequential basis, reduced working capital, and will begin realizing meaningful operating cost benefits from our recent restructuring and the sale of our Australian operations during Q4,” David Pidduck, the company’s CEO, said.
Q3 2022 Financial Highlights
- Quarterly net revenue of CA$7.3 million ($5.5 million), an increase of 66% on a sequential basis from CA$4.4 million in the second quarter and a 35% increase compared to the same period of last year.
- Canadian provincial sales of CA$3.5 million represent a growth of 28% on a sequential quarterly basis and 81% on a year-to-date comparison to the same period in 2021. Driven by leadership in the cannabis oil category and ongoing product innovation.
- International revenues for the third quarter were CA$3.4 million, which increased 156% from CA$1.3 million in the second quarter. International revenues represented over 45% of total revenues in the third quarter and 40% on a year-to-date basis.
- Net loss totaled nearly $8 million, compared to roughly CA$9 million loss in the prior period.
- Adjusted EBITDA came in negative at CA$4.97 million, compared to a CA$6.59 million loss in the prior year’s period.
- Ended the quarter with CA$19.5 million of cash which does not include CA$6.4 million for the sale of the Australian facility.
Recent Operational & Business Highlights
- Implemented a restructuring plan which is expected to reduce Canadian non-manufacturing headcount by roughly 30%, potentially reducing annualized expenses by approximately CA$3 million.
- In Q3 2022, MediPharm held the number 2 share nationally in this subcategory, according to Hyfire point of sale data.
- Launched 14 new unique SKUs since Q2, including four new international GMP SKUs for the UK and Brazilian markets.
- Made initial shipments to the German market from the Canadian facility during the quarter.
- Made first commercial sale to Brazil during Q3.
MediPharm’s shares traded 7.10% higher at $0.0671 per share at the time of writing on Monday morning.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Meet the biggest cannabis industry players and make deals that will push the industry forward.
Featuring live company presentations, insider panels, and unmatched access to networking, the Benzinga Cannabis Capital Conference is where cannabis executives and entrepreneurs meet.
Join us April 11-12, 2023 at Fontainebleau Miami Beach in sunny Florida.