Medipharm Labs (TSX: LABS) this morning continued to show its desperate need for effective leadership. The company posted yet another quarter of declining revenues and negative margins, posting just $5.1 million in revenues for the second quarter along with a loss of $11.8 million.
Revenues continue to fall for the struggling firm that was once labelled as one of the greats in the Canadian cannabis landscape. Revenues fell 7.7% from $5.5 million in the first quarter of 2021 to $5.1 million in the second quarter – and an astounding 63.6% year over year from $13.9 million. Perhaps more significant, the company saw domestic sales fall 80.3% year over year in Canada to $2.6 million. International sales at $2.5 million have largely been the saving grace for the firm as its Canadian operations sees the bottom effectively fall out.
The firm blamed COVID-19 on the disastrous revenue decline within Canada, despite the Canadian cannabis market actually continuing to expand. CFO Greg Hunter instead highlighted its international growth, stating, “Q2 2021 continued to show the strength of our diversified GMP platform to service or growing list of international medical customers.”
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Cost of sales meanwhile for the quarter amounted to $12.8 million, resulting in a negative gross profit of $7.7 million. Things fared no better in terms of expenses, with the firm seeing general and administrative expenses of $5.2 million among other items before posting an operating loss of $11.4 million.
The firm reported a net loss of $11.8 million, as well as adjusted EBITDA of negative $3.7 million.
Medipharm Labs last traded at $0.38 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.
