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Valens GroWorks Posts 86% QoQ Revenue Growth In Q4

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Valens GroWorks Posts 86% QoQ Revenue Growth In Q4

Cannabinoid extraction company Valens GroWorks Corp. (OTC: VLNCF) (TSXV:VLNS) reported Monday fourth quarter and fiscal year financial results with revenue reaching CA$30.6 million for the quarter. Revenue is 86% higher than in the previous quarter, and it surpassed the high-end of the projected range declared in December. For the fiscal year, the company reported revenue of CA$58.1 million.

It reached a gross profit for the quarter of CA$22.6 million, which compares to CA$12.8 million in the third quarter of 2019.

Valens also posted quarterly adjusted EBITDA of CA17.7 million, versus an adjusted EBITDA of CA$9.8 million in one quarter earlier. For the fiscal year adjusted EBITDA was CA$27.4 million.

In the fourth quarter, the company had a net income of CA$4.47 million or CA$0.04 per share, compared to CA$5.89 or CA$0.05 per share in the third quarter.

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"In Fiscal 2019 we added significant scale to our operations and became the largest white label product development, manufacturing and third-party extraction company in Canada," Tyler Robson, CEO of Valens said in a statement. "Our multi-year extraction contracts with industry leading players positioned us as the partner of choice in the industry and drove significant revenue, gross profit and adjusted EBITDA growth.

"In the second half of 2019, we broadened our offering to include white label product development and we now produce a broad portfolio of safe, consistent and innovative products to help our partners build brands and differentiate themselves in the market."

Valens closed Monday’s market session 0.33% lower at $3 per share.

 

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