MediPharm Labs (TSX: LABS) this morning continued its recent trend of dismal financing results, posting revenues of just $5.5 million for the period ended March 31, 2021, along with a net loss of $13.9 million for the three month period.
Revenues were down 9.9% on a quarter over quarter basis from the $6.1 million in revenues the company posted for the fourth quarter of 2020. The company blamed the decline of “challenging operating conditions” within the domestic Canadian retail cannabis market, and reduced purchasing from provincial regulators. Recreational sales declined 40% quarter over quarter to $3.4 million, while international sales grew to $2.1 million.
Things didn’t get better from here, with cost of sales coming in at $6.2 million, resulting in a negative gross profit of $0.7 million. Operating expenses continued this trend, with the company posting an operating loss of $7.9 million. The largest expenses here consisted of G&A expenditures of $4.0 million, as well as marketing and selling expenses of $1.3 million.
After a final finance expense of $9.7 million which was partially offset by an unrealized gain in derivates to the tune of $3.7 million, the company posted an overall net loss of $13.9 million.
The company has yet to name a new CEO following the stepping down of Pat McCutcheon late last year, with the company simply stating that several candidates have been identified.
MediPharm Labs last traded at $0.40 on the TSX.
.Information for this briefing was found via Sedar and Medipharm Labs. 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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absolute Junk stock