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Published: May 16, 2024
MediPharm Labs Corp., a pharmaceutical company specialized in precision-based cannabinoids announced its financial results for the three months ended March 31, 2024.
Select Highlights
- Revenue increased 67% to $9.8M during the three months ended March 31, 2024 (“Q1 2024”) versus revenue for the same quarter in 2023 (“Q1 2023”) of $5.8M.
- Q1 2024 gross profit was $2.7M or 27% which improved significantly versus Q1 2023 gross profit of 6.6% and versus the three months ended December 31, 2023 (“Q4 2023”) of 24.3%
- Adjusted EBITDA(1) improved 70% to negative $0.9M in Q1 2024 from negative $3.1M in Q1 2023 and improved sequentially from negative $1.6M in Q4 2023.
- MediPharm anticipates further improvement on profitability in 2024 with plans being implemented to improve Adjusted EBITDA(2) by a further $1M to $2M, which plans include the ongoing optimization of production and logistics facilities.
- Strong balance sheet with $17M million of cash, and less than $3 million of debt as of March 31, 2023.
Continued Growth in International Medical Cannabis in Q1 2024
- Changes to the German legislation in removing cannabis from the narcotic lists has opened new commercial opportunities to streamline in-county operations and expand the addressable patient base.
- In Q1 2024, MediPharm’s Beacon Medical GMBH hosted a successful audit at its German office for the continued import, manufacturing and release of cannabis products. This was followed by EU GMP renewal inspections at the Company’s Canadian sites. This clears the path to increase branded product sales in the second half of 2024(2). MediPharm now has 14 product registrations under the Beacon brand in Germany, up from 5 in Q4 2023.
- Increase in German medical cannabis sales to $1.4M, a 36% increase versus Q4 2023. 70% of these sales were non-flower products including oil, CBD isolate and dronabinol, contributing to improved overall international margin profile.
- In Q1 2024, MediPharm medical cannabis sales in Australia were $1.8M a 64% increase from Q4 2023. The main contributor to the increase was both branded and white label GMP vape sales. New tighter rules requiring all products to meet GMP standards in Australia has opened many branded and B2B opportunities for the Company.
David Pidduck, CEO, MediPharm Labs commented, “This quarter shows another quarter of growing revenue, stronger gross profit, decreasing costs and improving Adjusted EBITDA. MediPharm’s balance sheet is in an excellent position to consider future investments in growth. With Adjusted EBITDA getting close to breakeven, the leadership team can now devote even more energy to growing our business. Regulatory changes in Germany and Australia and potential upcoming changes in the US are all very favourable for the Company.”
Greg Hunter, CFO, MediPharm Labs added, “Q1 2024 was another step in the right direction towards profitability and becoming cash flow positive. Our revenue and Adjusted EBITDA were both the highest in over 3 years. Revenue was $9.8 million or 67% higher than prior year and Adjusted EBITDA loss was $0.9 million which is $2.1 million better than prior year. Our cash burn was approximately $1 million resulting in an ending cash balance of $17 million with less than $3 million of debt. MediPharm is in a strong financial position to capitalize on our strong suite of licences, global customer contracts and assets as we strive for profitability in 2024.”
About MediPharm Labs
Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets.
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