E MediPharm Labs Reports +30% Increases In Revenue, Adjusted EBITDA And Net Income In Q3

MediPharm Labs Corp. (TSX: LABS; OTCQX: MEDIF), a leader in specialized cannabis extraction, distillation and purification, announced financial results today for the three months ended September 30, 2019 (Q3).

Third Quarter Financial Highlights (All amounts are expressed in thousands of Canadian dollars and compared to Q2 2019.)

  • Revenue increased by 38%
  • Gross Profit increased by 30%
  • Gross Margin declined to 34% from 36%
  • Adjusted EBITDA increased by 31%
  • Adjusted EBITDA Margin declined to 23% from 24%
  • Net Income (before taxes) increased by 32%
  • Working capital of $87M and Cash & Equivalents of $42.1M

Third Quarter Operations Highlights

  • secured long-term bulk extract agreements with industry leaders including AusCann Group Holdings Ltd., Cronos Group, ADREXpharma GmbH, and TerrAscend Canada Inc.,
  • awarded organic certification for the production of cannabis extracts at its Barrie, Ontario, Canada facility and
  • expects to receive Australian and European GMP certificates in the first half of 2020 following rigorous audit processes now underway
  • pursuing a GMP license for its Australian subsidiary 
  • entered into an export agreement with ADREXpharma GmbH, a German pharmaceutical company, to export private label formulated cannabis oil to Germany
  • completed its second set of shipments of medical cannabis concentrate to Australia.
  • entered into agreements with Australian licensed cultivators to purchase dried flower
  • secured a manufacturing agreement for the production of cannabis oil and manufactured products in Australia
  • completed its bought deal financing in June 2019 for net proceeds of approximately $70.6 million
  • announced increased annual processing capacity of 300,000 kg
  • announced that its new customized, 200,000 kg extraction line on-site was available for commissioning once allocated to a licensed room.

Operations Highlights Subsequent to End of Q3

  • closed a credit agreement with top 5 Canadian Schedule I bank, Scotiabank, for an aggregate $38.7 million
  • filed an application to list its common shares on the NASDAQ Stock Market 
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