Cannabinoids-Focused Pharma Company, MediPharm, Sees Higher Q1 Revenue, CFO Touts 'Strong Financial Position'

Author: Nina Zdinjak | May 15, 2024 07:33am

MediPharm Labs Corp. (TSX:LABS) (OTCQB:MEDIF) (FSE: MLZ) announced its financial results for the first quarter ended March 31, 2024. The pharmaceutical company specializing in precision-based cannabinoids revealed a revenue increase of 67% to $9.8 million versus revenue for the same quarter in 2023 of $5.8 million.

“This quarter shows another quarter of growing revenue, stronger gross profit, decreasing costs and improving Adjusted EBITDA," stated David Pidduck, CEO. "MediPharm’s balance sheet is in an excellent position to consider future investments in growth. With Adjusted EBITDA getting close to breakeven, the leadership team can now devote even more energy to growing our business. Regulatory changes in Germany and Australia and potential upcoming changes in the US are all very favorable for the company.”

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Q1 Financial Summary

Gross profit was $2.7 million or 27% which improved significantly versus the first quarter 2023 gross profit of 6.6% and versus the fourth quarter of last year of 24.3%.
Adjusted EBITDA improved 70% to a loss of $900,000 from a loss of $3.1 million in the same period of 2023, and improved sequentially from a loss of $1.6 million in the prior quarter.
Net loss amounted to $3.6 million, compared to a loss of $3.09 million in the same period of last year.
As of March, 31, 2023 the company reported a balance sheet with $17 million in cash and less than $3 million in debt.

Greg Hunter, CFO, MediPharm Labs added, “Q1 2024 was another step in the right direction towards profitability and becoming cash flow positive. Our revenue and Adjusted EBITDA were both the highest in over 3 years. Revenue was $9.8 million or 67% higher than the prior year and Adjusted EBITDA loss was $0.9 million which is $2.1 million better than the prior year. Our cash burn was approximately $1 million resulting in an ending cash balance of $17 million with less than $3 million of debt. MediPharm is in a strong financial position to capitalize on our strong suite of licenses, global customer contracts and assets as we strive for profitability in 2024.”

The company said it anticipates further improvement in profitability in 2024 with plans being implemented to improve Adjusted EBITDA by a further $1 million to $2 million, which plans include the ongoing optimization of production and logistics facilities.