Medipharm Labs (TSX: LABS) last night filed its fourth quarter financial results. The company managed to achieve an impressive feat, posting negative gross profit margins for four straight quarters in 2021, while at the same time claiming that they are on a “solid financial footing.”
Revenue for the fourth quarter came in at $5.7 million, a 6.3% increase on a sequential basis from the third quarter’s $5.4 million in revenue. Gross profits declined rather dramatically however, falling from negative $1.9 million in the third quarter to negative $5.0 million in the fourth quarter.
“MediPharm is on solid financial footing, having exited the year with $34 million in cash, no debt and outright ownership of its key facilities,” said company CEO Greg Hunter, “In Q4 we generated sequential growth in key focus areas such as domestic white label sales, and sales into the German market. We expect to continue building on this progress through 2022.”
General and administrative expenses for the quarter meanwhile came in at $10.4 million, while marketing and selling expenses totaled $1.4 million. Other expenses came in at $4.2 million, leading to a net loss of $21.8 million for the quarter. Adjusted EBITDA meanwhile amounted to negative $6.6 million.
For the full fiscal year, revenues came in at $21.7 million, a 39.7% decline versus 2020’s revenue figure of $36.0 million. On the bright side here, the company managed to post a gross loss of just $15.2 million, as compared to a gross loss of $44.0 million in 2020.
Things got no better from here, with G&A expenses amounted to $24.2 million for the full year, followed by marketing and selling expenses of $4.6 million, leading to an operating loss of $48.9 million for the year. After additional finance expenses of $10.5 million that were partially offset by a gain on derivative liabilities, the company posted an overall net loss of $54.8 million for the full fiscal year. Adjusted EBITDA came in at negative $26.7 million.
As for CFO Greg Hunter’s commentary in regards to being on “solid financial footing,” the company currently has a cash position of $34.1 million as of December 31, down from $38.0 million at the end of the third quarter. Trade and other receivables meanwhile declined dramatically, falling from $29.1 million to $16.9 million, partially due to a $6.2 million impairment on receivables currently over 365 days past due.
Total current assets as a whole declined from $84.9 million to $65.5 million over the course of the quarter. Current liabilities also fell, dropping from $15.5 million to $8.9 million during the quarter.
Medipharm Labs last traded at $0.185 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.
