MediPharm Q2 Loss Narrows, Adjusted EBITDA Climbs As Gross Profit Improves Nearly 300% YoY

Cannabinoids-focused pharmaceutical company MediPharm Labs Corp. LABS MEDIF MLZ announced its financial results on Wednesday for the second quarter ended June 30, 2024, revealing an 8% year-over-year and 6% sequential increase to CA$10.3 million ($7.5 million).

“We are very pleased with our Q2 results, showcasing substantial improvements in both revenue and profitability," David Pidduck, the company's CEO said. "The strategic initiatives implemented, including cost reductions and operational efficiencies, are yielding positive results. We are particularly encouraged by the continued growth in our international sales and the progress in innovation of non-combustible cannabis formats.”

Read Also: Cannabinoids-Focused Pharma Company, MediPharm, Sees Higher Q1 Revenue, CFO Touts ‘Strong Financial Position’

Q2 2024 Financial Highlights

• Gross profit was CA$3.4 million, up from CA$855 000 in the prior year's period, with a 298% year-over-year increase being driven by cost reductions, production efficiencies and a favourable product mix with the expansion of international medical revenue.
• Operating expenses were reduced by CA$2 million year-over-year, driven by the execution of acquisition synergies and overall cost reductions.
• Net loss for the period was CA$2.6 million, down from CA$2.9 million in the second quarter of fiscal 2023.
• Adjusted EBITDA, a non-IFRS measure, came in negative at CA$124 000, representing an improvement from an adjusted EBITDA loss of CA$949 000 in the prior year's period.

Recent Business Highlights

The company’s shareholders recently elected five experts as members of its board of directors during their annual meeting.

In June the company entered into a licensing agreement with Remidose Aerosols Inc. to acquire the exclusive rights for advanced cannabis products. Under that deal, Remidose customers started to be serviced through MediPharm in August, including Canadian direct-to-patient medical platforms and international medical distributors. 

In July, MediPharm began delivering new high-potency medical cannabis flower branded under Beacon Medical GmbH to distribution partners in Germany, complementing existing sales as the market grows due to favorable regulatory changes.

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