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MediPharm Labs Revenue Drops 55% YoY, Cuts Net Loss Over Q2

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MediPharm Labs Revenue Drops 55% YoY, Cuts Net Loss Over Q2

MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF), which recently deepened its bench by tapping BMO Capital's Chris Taves and former Janssen’s executive Chris Halyk to its board, released its second-quarter financial results.

"The first half of 2020 was a transformative period," MediPharm Labs' CEO, Pat McCutcheon, noted Thursday, adding they are "encouraged" with the pace of MediPharm Labs' transition into a "global company."

Earnings Breakdown:

  • Revenue increased around 25% sequentially to $13.9 million, but it dropped by roughly 55% compared to the same quarter last year
  • Gross profit was $2.2 million, compared to a gross loss of $10.9 million in the first quarter of 2020
  • Gross margin was 16%
  • Net loss amounted to $3,7 million, versus a loss of $22 million in the first quarter and around $4 million net loss in the corresponding quarter of last year
  • Negative adjusted EBITDA of $2,18 million versus a positive adjusted EBITDA of $7,7 million in the second quarter of 2019
  • Formulated product shipments accounted for 16% of quarterly revenue, an increase of 13% compared to the first quarter

The company noted that MediPharm Labs Australia Pty. Ltd, its Australian subsidiary, generated its first revenue of $625,000 during the quarter.

Under the one-year deal — which is closed in June — MediPharm Labs Australia opted to supply VIVO's Beacon Medical Australia with GMP-certified CBD and THC cannabis oil products.

In addition, this year, MediPharm Labs Australia inked 12 customer agreements to supply products in Australia, New Zealand, Germany, UK, and Denmark.

Courtesy photo

 

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