Rubicon Organics Posts Net Revenue Of $4.6 Million,$5.1 Million Net Loss For Q2 2021
Rubicon Organics Inc. (TSXV: ROMJ) reported this morning its financial results for Q2 2021, highlighting net revenue of $4.6 million. This is an increase from Q2 2020’s net sales of $1.0 million.
The firm attributes the year-on-year revenue boost to the increase in product offering and expanded distribution. In a statement, Rubicon Organic CEO Jesse McConnell said, “with 44 SKUs across five brands, we can focus on meeting the rising demand from provincial distributors which is beginning to reflect both a return to normalized buying patterns and our new SKUs in high growth product categories.”
However, high costs of sales plus losses due to fair value adjustments in inventory led the company to end the quarter with a gross loss of $0.7 million. This is a notable decline from last year’s gross profit of $1.3 million.
Further down the financials, the firm recorded a net loss of $5.1 million compared to a loss of $1.8 million for the same period last year. The quarterly loss translates to $0.09 per share.
Calibrating for financial line items, adjusted EBITDA for the quarter came in at a loss of $3.4 million compared to last year’s loss of $2.5 million. The company relayed that the decrease is a result of investment expenses in the development and distribution of new brands and products, offsetting the net revenue increase.
The company burned cash for the first six months of the year as it ended with a cash balance of $4.0 million coming from $12.1 million at the start of the year. The net proceeds gained from equity financing amounting to $21.2 million have been offset by a total net loss of $9.1 million and debt repayments costing $13.9 million for the six-month period.
At the end of the quarter, the company’s current assets came in at $30.9 million while its current liabilities balance ended at $4.9 million.
The cannabis firm has been impacted by the COVID-19 pandemic, resulting in store closures which it said impacted its ability to achieve previously announced financial targets in the past six months. During that period, the company underwent a company-wide restructuring that led to annualized savings of $2.6 million.
Rubicon Organics last traded at $2.25 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. 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.
