MediPharm Labs posted a gross profit of $3.4 million in the three months ended June 30, 2024, but a net loss of $2.6 million.
The Company’s Q2 2024 gross profit was up significantly from the $855,000 reported in the same quarter in 2023, while net loss was down from $2.9 million, which the company attributes to product mix, production efficiencies, cost reductions, and an increase in international sales.
Net revenue was up 8% year-over-year, which MediPharm attributes to increased sales of dronabinol, international sales of oil in Germany, and international sales of vapes in Australia.
MediPharm has sold into ten international markets and conducts business in Australia, Germany, and Brazil. The company is partnered with STADA Arzneimittel AG, Europe’s fourth-largest generic drug company, which supports its business segment in Germany. MediPharm’s Beacon Medical Brand also helps to strengthen its presence in the Australian market. It also recently launched Canadian-produced GMP Beacon Medical Brand cannabis oil and inhalation cartridges in the Australian medical market through Beacon Medical Australia.
MediPharm reports an increase in the expected average fair value of cannabis flower at $1.80 per gram and $0.07 for trim, compared to $1.48 per gram for flower products and $0.07 for trim as of June 30, 2023.
MediPharm Labs operates out of two manufacturing facilities in Ontario, the Barrie Facility and the Napanee Facility. It has recently begun shutting down operations at its Canna Farms facility in BC.
On June 20, 2024, the Company entered into a licensing agreement with Remidose Aerosols Inc. to acquire the exclusive global rights for advanced cannabis products.
David Pidduck, CEO of MediPharm Labs, commented, “We are very pleased with our Q2 results, showcasing substantial improvements in both revenue and profitability. The strategic initiatives implemented, including cost reductions and operational efficiencies, are yielding positive results. We are particularly encouraged by the continued growth in our international sales and the progress in innovation of non-combustible cannabis formats.”
Greg Hunter, CFO of MediPharm Labs, added that “Q2 2024 was a major step in the right direction towards profitability and becoming cash flow positive. Our revenue and Adjusted EBITDA were both the highest in over three years and Q2 put MediPharm on the verge of profitability. Revenue was $10.3M or 8% higher than prior year and Adjusted EBITDA(1) loss was $0.1M which is $3.1M better than prior year and $0.8M better than Q1 2024. Our cash burn was approximately $1M resulting in a cash balance of $16M with less than $3M of debt at the end of Q2 2024. 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 the back half of 2024.”
