Harvest Health Reports US$88.8 Million In Revenue, US$26.9 Million Net Loss For Q1 2021

Harvest Health & Recreation Inc. (CSE: HARV) reported this morning its financial results for Q1 2021, which saw US$88.8 million in revenue generated. This is a notable increase from Q4 2020’s $69.9 million and Q1 2020’s US$44.2 million in revenue.

Harvest Health’s also reported that its gross profit margin this quarter increased to 53.9% from 44.8% last quarter and 41.0% last year. Its gross profit is recorded at US$47.9 million this quarter, compared to $31.3 million last quarter and $18.1 million last year.

The company, however, recorded a net loss of US$23.0 million this quarter, down from Q4 2020’s US$7.4 million and Q1 2020’s US$15.4 million net losses. This quarter’s net loss translates to US$0.06 loss per share. 

Looking at the company’s financials, the loss is mainly attributable to the adjustment of the fair value of its liabilities. Taking that into consideration, the company reported an adjusted EBITDA for the quarter of US$26.9 million, up from negative US$4.8 million last year.

Harvest Health also announced that it is raising its full-year 2021 revenue target to US$400.0 million and expecting gross profit margins to be at or above 50%.

Earnings were released this morning, shortly before it was announced that Trulieve Cannabis Corp. (CSE: TRUL) intends acquire Harvest Health for approximately US$2.1 billion in an all-stock transaction.

Harvest Health & Recreation Inc. last traded at $4.35 on the CSE.

Information for this briefing was found via Sedar and Harvest Health and Recreation. 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.

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