Aleafia Health's Q3 Cannabis Revenue Grows 123% YoY, Reports Higher Net Loss, Negative Adjusted EBITDA

Vertically-integrated cannabis company Aleafia Health Inc. AH ALEAF reported its third-quarter earnings Thursday with net cannabis revenue of $9.49 million, representing an improvement of 123% from $4.25 million in the same period of the prior year.

Q3 Financial Summary

• Net loss amounted to $82.92 million, which compares to a net loss of $19.76 million in the third quarter of 2020;    Adjusted EBITDA came in negative at $7.6 million, versus an adjusted EBITDA loss of $5.21 million in the corresponding prior-year period.             
• SG&A expenses declined 24% over the previous quarter;
• Adult-use cannabis net revenue improved 2,044% year-over-year to $5.04 million.                       
• At the end of the reporting period on Sep. 30, the company held $11.34 million in cash and cash equivalents, compared to $30.53 million it held on Dec. 31, 2020.  

 “Our momentum in the adult-use cannabis sector has continued with our strongest quarter to date by a significant margin,” Aleafia Health CEO Geoffrey Benic stated. “Consumer demand for our portfolio has been clearly demonstrated as we now begin to capture meaningful market share, entering the top 10 nationally in the pre-roll, edible, and oils categories. Most importantly, we’ve realized a five-fold sequential increase in dried flower market share during the quarter, in a category that is both Canada’s largest and one that leverages our low-cost cultivation advantage."

Business Updates And Other Milestones

• Outdoor harvests produced an average yield on THC-dominant dried flower of 22%;
• Strengthened product portfolio with a total of 35 and 46 SKUs listed in Ontario and Alberta respectively by January 2022;
• Achieved notable increase in dried flower market share;
• Doubled national market share in pre-rolls and entered the top 10 in national market share in the category, estimated to be Canada’s third-largest;
• Positioned at the top 10 by market share in edibles.

Price Action

Aleafia Health’s shares closed Wednesday market session 5.79% higher at 23 cents per share.

Photo: Courtesy of CRYSTALWEED cannabis on Unsplash