Emerald Health's Pure Sunfarms Retail Market Volume Spikes 179%

Cannabis producer Emerald Health Therapeutics Inc. EMHEMHTF released Friday the preliminary first-quarter financial results for Pure Sunfarms.

In the fourth quarter of 2019, Emerald's 41.3%-owned joint venture rose its revenue in the retail market by 118%. Over the same period, its retail market volume increased by 179%.

Pure Sunfarms posted total net sales of $18 million, representing 25% of a year-over-year increase.

For the quarter, it disclosed a gross profit of $9.4 million, up by 1% compared to the gross profit in the same quarter of 2019.

The Victoria, Canada-based company also reached its sixth consecutive quarter of positive EBITDA of $6.7 million. However, it's down by 22% compared to the 2019 first-quarter EBITDA of $8.6 million.

During the first quarter of 2020, Pure Sunfarms sold roughly 10,365 kilograms of flower and trim, up by 60% compared to the same period last year.

The average selling price decreased by almost 50% to $1.74 per gram.      

The quarterly highlights include the introduction of its branded products of dried cannabis in Alberta; launching of a new Sativa variety; the Saskatchewan Liquor and Gaming Authority's approval to distribute cannabis to the private retail market in the province.

Emerald's President and Chief Executive said they are thrilled to witness Pure Sunfarms' successful transition to the retail market.

"The Pure Sunfarms team is also to be commended for their fifth consecutive quarter of profitability, which place it in a very unique and enviable position in the sector," added Bandali.

The company said Pure Sunfarms is working on its plans to introduce its cannabis oil products in the months to come.