Aleafia Health Inc (TSX: ALEF) has released its financial reports for the fourth quarter and fiscal year, reporting revenues of $6.0 million for the quarter while posting a net loss of $9.75 million.
In the fourth quarter 2019, Aleafia reported net revenues of $6.0 million, an increase of $1.07 million compared to the third quarter 2019, or 27%. However, the company reported a net loss of $9.75 million, going from a positive net income of $1.859 million in third quarter 2019, to a loss of $9.759 million by the fourth quarter 2019.
In terms of profitability, Aleafia had a gross margin of 43% in the third quarter of 2019, but in the fourth quarter 2019 that gross margin increased to 80%. Gross margin is the sales revenue remaining after direct production costs are deducted. A high level of gross margin indicates the company is retaining more capital per dollar incurred from sales.
On an annual basis, Aleafia had a net revenue increase of over 836% compared to fiscal year 2018, which had net revenues of $0.64 million. Net income as of December 31, 2018 was at a loss of $11.958 million – fast forward to December 31, 2019, the company is still operating at a loss, but that loss is lower by approximately 18.38%.
Lastly, Aleafia’s gross margin for December 31, 2018 was at 12%, which increased by 68% over the fiscal year.
Aleafia is a Canadian cannabis company focused on the production and sale of cannabis. The company also operates several medical clinics and education centers for cannabis.
Aleafia Health Inc is currently trading at $0.34 on the TSX.
Information for this briefing was found via Sedar and Aleafia Health Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.