Panaxia Labs Israel Reports Q3 Record Revenues Of $7.15M, Up 34% YoY

Medical cannabis company Panaxia Labs Israel Ltd., a subsidiary of Panaxia Global PNAX, reported its financial results on Monday for the third quarter revealing revenues of NIS22.5 million ($7.15 million), up by 34% from NIS16.8 million in the same period of last year.

The gross profit totaled NIS2.2 million (gross profit margins of 10%), compared with gross profit of NIS1.9 million (11 %) in the same quarter last year and a gross loss of NIS2.2 million in the previous quarter;

Focused on self-production and exports to Europe, Panaxia sold its distribution and logistics operations in Israel. This move is expected to improve Panaxia's operating profitability and expense structure, concurrently with the growth projected for the coming quarters due to the initiatives taken by the company.

"We are closing a strong third quarter in which we resumed our double-digit revenue growth,” Dadi Segal, CEO of Panaxia Israel stated. “Our strategy, which focuses on manufacturing, exporting and selling our products, is proving its worth, yielding fruit already in this quarter. During and after the third quarter, we received the export permit we had been waiting for. The permit allows us to export medical cannabis extracts for vaporization, a novel, first-of-its-kind product approved for marketing in Germany and across Europe. A first commercial shipment already sent to Germany.”

Segal added that this product is very valuable to patients who avoid smoking medical cannabis. “We expect the product to capture a substantial market share in Europe, similar to mature markets in North America. In addition to regular export to Germany and Cyprus, we are making progress in the regulatory registration of our products in Greece, Poland, and Denmark. At the same time, we plan to expand to other markets where medical cannabis is regulated, where we will leverage our regulatory and commercial advantages."

Photo: Courtesy of Kimzy Nanney on Unsplash