VIVO Cannabis Inc. (TSX: VIVO) last night reported its Q1 2021 financial and operating results. The company highlighted net revenue of $5.5 million, a decrease of 11% over the previous quarter.
Revenues were down from $6.2 million in the prior quarter, with the company blaming the decline on a one-time $0.6 million excise tax underestimate, as well as market compression. The firms net revenue of $5.5 million was whittled down to a gross profit of just $0.8 million following production expenses and costs of goods sold.
Expenses for the quarter meanwhile came in at $4.2 million, lead by general and administrative expenses of $4.0 million, and amortization and depreciation of $1.1 million, while the company recognized a gain on other financial assets to the tune of $1.3 million. The company overall reported a net loss of $3.5 million for the three month period.
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VIVO’s adjusted EBITDA meanwhile was recorded at $2.4 million for the period, compared to the previous quarter’s $4.8 million. Cash and equivalents were valued at $16.9 million, a quarter over quarter change of 197% from the previous quarters $5.7 million.
The company has stated that the loss is primarily due to negative impacts from the COVID-19 situation which include downward pricing pressure and less demand for premium cannabis, lower than anticipated adult-use market growth, and production inefficiencies due in part to staffing challenges.
VIVO Cannabis Inc. last traded at CAD$0.14.
Information for this briefing was found via Sedar and Vivo Cannabis. 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.
