Delivra Health Stock Trading Higher On Reached Profitability

Delivra Health Brands Inc. DHBUF DHB (formerly, Harvest One Cannabis Inc.) released its financial and operating results for the three and six months ended December 31, 2022, revealing total net revenue from continued operations of CA$2.39 million ($1.76 million), a 37% increase compared to CA$1.74 million in same period last year. This increase was primarily due to higher sales of Dream Water in US to international distributors and higher sales of the company's licensed LivRelief cannabis-infused topical creams in Canada.

Q2 FY 2023 Financial Highlights

• Gross profit of CA$987,000 compared to CA$644,000 in the same period last year.

• Gross profit margin of 41% compared to 37% in same period last year. The increase in gross profit and gross profit margin was the result of increased sales volume of the company's licensed 2.0 LivRelief products and higher margin sales from the US and international distributors.

• Adjusted EBITDA of CA$140,000 as compared to CA$(954,000) in the same period last year, representing a CA$1.09 million year over year improvement from continued operations.

• Net gain from operations was CA$890,000 compared to a loss of CA$1.6 million in the same period last year.

"The second quarter of fiscal 2023 reflects the start of a new phase in our history as Delivra Health has now become a profitable business," stated Gord Davey, president and CEO of Delivra Health. "In Q2 2023, the company reported positive adjusted earnings before interest, taxes, depreciation and amortization. Since the start of our strategic reorganization in March 2020, the Delivra Health team has worked diligently on its customer mix, margins and achieving a responsible level of selling, general and administrative expenses. These positive Q2 2023 results demonstrate that our business model is effective and scalable without burning significant cash going forward. With the sale of our Lucky Lake facility, Delivra Health's balance sheet is now well positioned for future growth. The company will be increasing its investment in further innovation projects, customer programs and marketing campaigns."

Price Action

Delivra Health shares were trading 10.67% higher at $0.0167 per share at the time of writing Wednesday morning.

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