Aleafia Health Reveals 53% QoQ Spike In Q2 2021 Cannabis Net Revenue

Vertically integrated cannabis company Aleafia Health Inc. AH ALEAF reported its financial results for the three and six months ended June 30, 2021. Shares traded 0.87% lower at $0.0027 per share at the time of writing Thursday mid-morning.

In its earnings report published Thursday, the Toronto-based company revealed a 53% sequential increase in cannabis net revenue, totaling roughly $9.6 million in the second quarter of 2021.

“This quarter clearly demonstrates the success of our expanded product portfolio, with strong sequential growth across all sales channels and a shift towards a more balanced mix with sizable contributions from both the medical and adult-use cannabis markets,” Aleafia Health CEO Geoffrey Benic commented.

Q2 2021 Financial Highlights

• Medical cannabis net revenue amounted to $3.3 million, a 23% and 67% increase over the previous and prior year’s quarter, respectively.
• Net adult-use cannabis revenue was $3.2 million, an 87% spike over the previous quarter and 270% over the prior year’s quarter.
• Net bulk wholesale revenue received from sales to cannabis licensed producers was $3.1 million versus $1.9 million and $6.2 million in the previous and prior year’s quarters, respectively.
• Adjusted gross margin before FV adjustments on cannabis net revenue was 49%, compared to 59% and 33% in the prior and prior year’s quarters, respectively.
• Adjusted EBITDA was a loss of $3.3 million versus a profit of $3.1 million in the prior year’s quarter.
• Net loss was $36,000, compared to a net loss of $4.0 million over the prior year’s quarter.

First Half 2021 Financial Highlights

• Net revenue totaled $17.7 million, down from $24.8 million in the same quarter of 2020.
• Cannabis net revenue amounted to $15.8 million, representing a decline from $ 22.7 million in the same quarter of last year.
• Adjusted EBITDA was negative at $6.4 million, versus a positive adjusted EBITDA of $9.8 million in the prior year’s period.

Balance Sheet

As of June 30, the company had $17.8 million in cash, cash equivalents and marketable securities as well as $221.4 million in total assets and working capital of $21.15 million.

Convertible debt totaled approximately $34 million, while total debt was $36.5 million.

More recent news from Aleafia Health:

• Cannabis Movers & Shakers: Khiron, Aleafia, Green Scientific Labs, 4Front Ventures, Halo Collective, Kiva Sales & Service, Sharp Capital Advisors, Simplifya, Organigram
• Aleafia Health Launches New CBD Freshly Minted Roll-on Under Noon & Night Brand Name

• Cantor Remains Neutral On Aleafia Health, Lowers Price Target On Sectoral Derating, Sees Value

• Aleafia Health Cannabis Co To Raise Up To $30M Through ATM Program
• Aleafia Health Completes Export Of Medical Cannabis To Germany

Photo: Courtesy of Esteban Lopez on Unsplash