Medipharm Labs brought in $9.8 million in net revenue in the three months ended September 30, 2024 (Q3 2024) and $3.1 million in gross profit, but a net loss of $2.8 million.
Net revenue was up 15% from $8.5 million in the same quarter the previous year, while net loss declined from $4.3 million. Gross profit increased year-over-year from $2.4 million and $3.4 million in the previous quarter (Q2 2024).
The bulk of the company’s net revenue came from sales into the Canadian market ($6.2 million), increased from $5.9 million in the same quarter in 2023. Another $2.5 million in sales were in Australia, up year-over-year from $2.2 million, $1 million in Germany (up from $319,000 in Q3 2023), and $62,000 in other international sales (up from $5,000).
Of the sales in the Canadian market, $1.7 million were in the adult use and wellness markets, while $3.7 million were in the medical markets.
Medipharm’s Beacon cannabis brand increased to $400,000 in the most recent quarter, up from $135,000 in all of 2023.
The company reported its best quarter wholesale sales ($2.5 million) in the Australian market in Q3 2024 since acquiring Beacon Medical Australia PTY Ltd. in the second quarter of 2023. Medipharm attributes this growth to the addition of new high-potency flower and the recent launch of cannabis oils, vapes, and live resin vape cartridges.
The company says it also has additional commitments for sales into new international markets and is currently completing various international regulatory registrations, including the UK, Brazil and New Zealand.
Medipharms also says the completion of its move of medical sales and distribution from its Hope, BC facility, the former Canna Farm facility, to Barrie, ON, has resulted in cost savings. The company still hopes to sell the Canna Farms facility, one of the first licensed in Canada.
Medipharms also operates Harvest Medicine Inc., a medical cannabis clinic. Although new medical registrations in Canada have declined, Medipharms says its medical sales have stayed consistent, showing good customer retention.
David Pidduck, CEO of MediPharm Labs, commented, “MediPharm accomplished several important milestones in Q3 that will position us well for profitability in 2025. MediPharm has successfully diversified its business. As a global GMP player, our international sales grew 37% vs. Q3 2023, resulting in over 35% of revenue from outside Canada.
“We have a strong presence in the Canadian medical channel and growing B2B sales. Additionally, MediPharm continues to launch new products and build on our very broad product line in the Canadian adult use and wellness channel. This diversity has contributed to our balance sheet strength and our ability to capitalize on future growth opportunities in various countries, product categories, and channels.”
MediPharm Labs was founded in 2015. The Barrie, Ontario facility holds GMP certifications from Health Canada, the Australian Therapeutic Goods Association, and ANVISA (Brazil). The Barrie Facility obtained EU-GMP certification from the LAVG in July 2024. These GMP certifications have been accepted in other international markets, such as Brazil and the European Union.
MediPharm owns two wholly-owned subsidiaries, Canna Farms and ABcann. ABcann’s operations focus on European Union Good Manufacturing Practices related to cultivation and packaging for international markets.
In 2021, MediPharm Labs received a Pharmaceutical Drug Establishment Licence from Health Canada, becoming the only company in North America to hold a domestic Good Manufacturing Licence for the extraction of natural cannabinoids.
