Aleafia Health Reports Positive Q1 Results

Aleafia Health Inc. ALEF ALEAF reported its financial results for the first quarter of 2020.

Net revenue was announced at $14.6 million, a significant increase of 143% over the previous period, and an increase of 859% compared to the three months that ended March 31.

Net loss was reported in $6.2 million compared to $9.8 announced the previous quarter due to changes in fair value of inventory sold, amortization and depreciation expense of $2 million, and a deferred income tax expense of $1.7 million.

Gross profit increased by 203% from the previous quarter, reaching $11.7 million.

Additionally, gross margin on net cannabis income for the first quarter of 2020 was reported to be 85%, in comparison to 80% in the third quarter of 2019.

Adjusted positive EBITDA was announced of $6.4 million and represents the company’s second consecutive positive EBITDA.

“Our disciplined, sustainable growth has resulted in a breakthrough quarter for Aleafia Health. Our patient-centric approach remains at the core of our business as we build our cannabis health and wellness ecosystem,” said Aleafia Health CEO Geoffrey Benic. “The prudent allocation of capital instituted over the course of 2019 is reflected in streamlined expenses, a fifth consecutive quarter of solid revenue growth, and industry-leading gross margin among North American cannabis industry reporting issuers.”