MediPharm Labs Reports 24% QoQ Pop In International Sales, Q2 2021 Revenue Drops 63.6% YoY

MediPharm Labs Corp. LABS MEDIF MLZ announced its financial results Monday for the three and six months ended June 30. Shares traded 0.42% higher at $237 per share in Monday’s pre-market session.

The second-quarter earnings report announced on the heels of the receipt of Health Canada’s Drug Establishment Licence in July revealed a 7.7% sequential and 63.6% year-over-year drop in revenue which amounted to CA$5.07 million ($4.05 million) in the second quarter. GAAP earnings per share were negative at - CA$0.04.

“We underwent a Health Canada audit for a pharmaceutical GMP Drug Establishment Licence which led to the successful issuance of this license – the first of its kind in the North American cannabis industry,” said Keith Strachan, MediPharm’s president and interim CEO.

Q2 2021 Financial Highlights

• International sales increased 24% sequentially from CA$2 million to CA$2.5 million, with German sales increasing 24% sequentially and Australian sales increasing 30% sequentially.
• Domestic Canadian sales declined 26% from CA$3.5 million to CA$2.6 million.
• Negative gross profit was CA$7.7 million, including CA$5.7 million of inventory write-downs from NRV and slow-moving and obsolete inventory, as well as CA$0.5 million of accelerated deprecation for assets not in use.
• Net loss amounted to CA$11.8M, representing a sequential improvement from CA$13.9 million, and compared to approximately CA$31 million loss for the quarter ended December 31.
• Adjusted EBITDA came in negative at CA$3.7 million, up sequentially from a CA$6.16 million adjusted EBITDA loss in the prior period.
• As of June 30, the company had CA$39 million in cash and cash equivalents.

“We were pleased to see international sales growth of 24% sequentially to help offset the challenging operating conditions in domestic Canadian retail channels as the result of COVID19,” MediPharm’s CFO Greg Hunter said.

Operational Milestones

Apart from the Health Canada DEL approval, the company added two new customer deliveries in Germany, sent follow-up orders to first quarter 2021 customers, STADA and Adrex Pharma, and executed four customer fulfillments.

In addition, the company kicked off delivery to government-operated cannabis retail stores in the Province of Québec.

More recent news from MediPharm:

• MediPharm Labs Extends Collaboration With German Medical Cannabis Distributor ADREXpharma
• IM Cannabis, MediPharm Labs Sign Supply Agreement For German Market

Photo: Courtesy of Markus Winkler on Unsplash