Aleafia Health Reveals 53% QoQ Spike In Q2 2021 Cannabis Net Revenue

Vertically integrated cannabis company Aleafia Health Inc. (TSX: AH) (OTCQX: ALEAF) reported its financial results for the three and six months ended June 30, 2021. Shares traded 0.87% lower at $0.0027 per share at the time of writing Thursday mid-morning.

In its earnings report published Thursday, the Toronto-based company revealed a 53% sequential increase in cannabis net revenue, totaling roughly $9.6 million in the second quarter of 2021.

“This quarter clearly demonstrates the success of our expanded product portfolio, with strong sequential growth across all sales channels and a shift towards a more balanced mix with sizable contributions from both the medical and adult-use cannabis markets,” Aleafia Health CEO Geoffrey Benic commented.

Q2 2021 Financial Highlights

• Medical cannabis net revenue amounted to $3.3 million, a 23% and 67% increase over the previous and prior year’s quarter, respectively.
• Net adult-use cannabis revenue was $3.2 million, an 87% spike over the previous quarter and 270% over the prior year’s quarter.
• Net bulk wholesale revenue received from sales to cannabis licensed producers was $3.1 million versus $1.9 million and $6.2 million in the previous and prior year’s quarters, respectively.
• Adjusted gross margin before FV adjustments on cannabis net revenue was 49%, compared to 59% and 33% in the prior and prior year’s quarters, respectively.
• Adjusted EBITDA was a loss of $3.3 million versus a profit of $3.1 million in the prior year’s quarter.
• Net loss was $36,000, compared to a net loss of $4.0 million over the prior year’s quarter.

First Half 2021 Financial Highlights

• Net revenue totaled $17.7 million, down from $24.8 million in the same quarter of 2020.
• Cannabis net revenue amounted to $15.8 million, representing a decline from $ 22.7 million in the same quarter of last year.
• Adjusted EBITDA was negative at $6.4 million, versus a positive adjusted EBITDA of $9.8 million in the prior year’s period.

Balance Sheet

As of June 30, the company had $17.8 million in cash, cash equivalents and marketable securities as well as $221.4 million in total assets and working capital of $21.15 million.

Convertible debt totaled approximately $34 million, while total debt was $36.5 million.

More recent news from Aleafia Health:

• Cannabis Movers & Shakers: Khiron, Aleafia, Green Scientific Labs, 4Front Ventures, Halo Collective, Kiva Sales & Service, Sharp Capital Advisors, Simplifya, Organigram
• Aleafia Health Launches New CBD Freshly Minted Roll-on Under Noon & Night Brand Name

• Cantor Remains Neutral On Aleafia Health, Lowers Price Target On Sectoral Derating, Sees Value

• Aleafia Health Cannabis Co To Raise Up To $30M Through ATM Program
• Aleafia Health Completes Export Of Medical Cannabis To Germany

Photo: Courtesy of Esteban Lopez on Unsplash