Khiron Life Sciences Corp. KHRNF KHRN (Frankfurt: A2JMZC) released its financial results for the quarter ended March 31, 2022, revealing record revenue in the medical cannabis business.
Q1 Financial Highlights
Revenue of CA$4.6 million, a 65% increase from Q1 2021, and a 28% increase from Q4 2021
Record revenue in medical cannabis of over CA$2.6 million in Q1 2022, a 470% increase from the prior year and 32% increase from Q4 2021
Gross profit before fair value adjustments grew to CA$2.1 million, up 96% from Q1 2021, driven primarily by its 75% gross margin medical cannabis business, compared to 49% in Q4 2021.
In Q1 2022, Europe (the UK and Germany) represented 53% of all medical cannabis revenue, compared to 10% in Q1 2021.
The net change in cash and cash equivalents of -CA$3.3 million, compared to -CA$8.6 million in Q1 2022, ending Q1 2022 with CA$5.1 million in cash
Q1 2022 operating highlights
Khiron's patient-focused medical cannabis segment posted 7th quarter of consecutive revenue growth in Q1 2022, and now represents 57% of the corporation´s revenue and 92% of its total gross profits. In the month of March 2022, Khiron had surpassed CA$1 million in monthly revenues in medical cannabis alone.
In Colombia, Khiron continues to be a market leader in medical cannabis with its vertically integrated approach and leverage of insurance coverage on its clinics. Over 82% of sales were sold through insurance coverage, and over 84% of the sales were sold to returning patients, who are now purchasing up to 1.8 bottles per month.
At the end of Q1 2022, the corporation had CA$37.6 million in total assets (excluding goodwill), with more than CA$9.4 million in land and buildings, high-quality medical cannabis inventory of CA$8.1 million, healthy accounts receivables with credit-worthy clients in Colombia and Europe of CA$4.4 million and CA$0.8 million in financial debt.
Alvaro Torres, Khiron CEO and director, stated, "Khiron is the top-selling medical cannabis brand in Latin America and one of the top-selling brands in the United Kingdom. Our unique approach will continue to generate double-digit revenue and gross profits quarter over quarter in markets poised to become significant in the coming years. Our focus is to leverage the infrastructure we have built to continue driving sales in our target markets while maintaining discipline in our expenses so we can achieve profitability in the near future, and then continue to look for more growth opportunities in Latin America and Europe."
Torres added, "The results of Q1 2022 continue to showcase the success of Khiron's global expansion and the corporation's unique "patient-first" strategy.
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