MediPharm Labs Reports Full Year & Fourth Quarter 2024 Results
MediPharm Labs (MEDIF) reported strong financial results for FY2024, with annual net revenue increasing 27% to $42M, driven by record $18M international medical cannabis revenue. The company achieved significant profitability improvements, with gross profit reaching $12.8M (31% margin) compared to $5.8M (18%) in 2023.
Q4 2024 showed remarkable progress with revenue of $12M, up 32% year-over-year, and gross profit of $3.6M (30% margin). International revenue represented 54% of Q4 revenue, growing from $2.4M to $6.5M. The company maintained a strong balance sheet with $11.7M in cash and is materially debt-free after repaying $2M of convertible debt.
The company announced the planned sale of its Hope facility for $4.5M, with expected closure in Q2, while operations were consolidated to the Barrie facility, resulting in $1M annual savings.
MediPharm Labs (MEDIF) ha riportato risultati finanziari solidi per l'anno fiscale 2024, con un aumento del 27% delle entrate nette annuali, che hanno raggiunto $42M, grazie a un record di entrate internazionali da cannabis medica pari a $18M. L'azienda ha ottenuto significativi miglioramenti nella redditività, con un profitto lordo di $12.8M (margine del 31%) rispetto a $5.8M (18%) nel 2023.
Il quarto trimestre del 2024 ha mostrato progressi notevoli con un fatturato di $12M, in aumento del 32% rispetto all'anno precedente, e un profitto lordo di $3.6M (margine del 30%). Le entrate internazionali hanno rappresentato il 54% del fatturato del quarto trimestre, crescendo da $2.4M a $6.5M. L'azienda ha mantenuto un bilancio solido con $11.7M in contante ed è sostanzialmente priva di debiti dopo aver rimborsato $2M di debito convertibile.
L'azienda ha annunciato la vendita pianificata della sua struttura Hope per $4.5M, con chiusura prevista nel secondo trimestre, mentre le operazioni sono state consolidate nella struttura di Barrie, con un risparmio annuale di $1M.
MediPharm Labs (MEDIF) reportó resultados financieros sólidos para el año fiscal 2024, con un aumento del 27% en los ingresos netos anuales, alcanzando $42M, impulsados por un récord de ingresos internacionales de cannabis medicinal de $18M. La compañía logró mejoras significativas en rentabilidad, con un beneficio bruto de $12.8M (margen del 31%) en comparación con $5.8M (18%) en 2023.
El cuarto trimestre de 2024 mostró un progreso notable con ingresos de $12M, un 32% más que el año anterior, y un beneficio bruto de $3.6M (margen del 30%). Los ingresos internacionales representaron el 54% de los ingresos del cuarto trimestre, creciendo de $2.4M a $6.5M. La compañía mantuvo un balance sólido con $11.7M en efectivo y está prácticamente libre de deudas tras pagar $2M de deuda convertible.
La compañía anunció la venta planeada de su instalación Hope por $4.5M, con cierre esperado en el segundo trimestre, mientras que las operaciones se consolidaron en la instalación de Barrie, resultando en ahorros anuales de $1M.
MediPharm Labs (MEDIF)는 2024 회계연도에 강력한 재무 결과를 보고했으며, 연간 순수익이 27% 증가하여 $42M에 달했습니다. 이는 $18M의 국제 의료용 대마초 수익에 의해 주도되었습니다. 회사는 2023년의 $5.8M (18%)와 비교하여 총 이익이 $12.8M (31% 마진)에 도달하여 상당한 수익성 개선을 달성했습니다.
2024년 4분기에는 $12M의 수익을 기록하며 전년 대비 32% 증가했으며, 총 이익은 $3.6M (30% 마진)이었습니다. 국제 수익은 4분기 수익의 54%를 차지하며 $2.4M에서 $6.5M으로 증가했습니다. 회사는 $11.7M의 현금을 보유하고 있으며, $2M의 전환사채를 상환한 후 실질적으로 부채가 없는 상태를 유지하고 있습니다.
회사는 Hope 시설의 계획된 판매를 $4.5M에 발표했으며, 2분기에 종료될 것으로 예상되며, 운영은 Barrie 시설로 통합되어 연간 $1M의 절감 효과를 가져왔습니다.
MediPharm Labs (MEDIF) a rapporté de solides résultats financiers pour l'exercice 2024, avec une augmentation de 27 % des revenus nets annuels, atteignant $42M, grâce à un chiffre d'affaires record de $18M provenant du cannabis médical international. L'entreprise a réalisé des améliorations significatives de sa rentabilité, avec un bénéfice brut atteignant $12.8M (marge de 31 %) par rapport à $5.8M (18 %) en 2023.
Le quatrième trimestre 2024 a montré des progrès remarquables avec un chiffre d'affaires de $12M, en hausse de 32 % par rapport à l'année précédente, et un bénéfice brut de $3.6M (marge de 30 %). Les revenus internationaux ont représenté 54 % des revenus du quatrième trimestre, passant de $2.4M à $6.5M. L'entreprise a maintenu un bilan solide avec $11.7M en liquidités et est pratiquement sans dette après avoir remboursé $2M de dettes convertibles.
L'entreprise a annoncé la vente prévue de son installation Hope pour $4.5M, avec une fermeture prévue au deuxième trimestre, tandis que les opérations ont été consolidées dans l'installation de Barrie, entraînant des économies annuelles de $1M.
MediPharm Labs (MEDIF) hat starke finanzielle Ergebnisse für das Geschäftsjahr 2024 berichtet, mit einem Anstieg des jährlichen Nettoumsatzes um 27% auf $42M, angetrieben durch einen Rekordumsatz von $18M im internationalen medizinischen Cannabisbereich. Das Unternehmen erzielte erhebliche Verbesserungen bei der Rentabilität, mit einem Bruttogewinn von $12.8M (31% Marge) im Vergleich zu $5.8M (18%) im Jahr 2023.
Im vierten Quartal 2024 zeigte sich bemerkenswerter Fortschritt mit einem Umsatz von $12M, was einem Anstieg von 32% im Jahresvergleich entspricht, und einem Bruttogewinn von $3.6M (30% Marge). Die internationalen Einnahmen machten 54% des Umsatzes im vierten Quartal aus und stiegen von $2.4M auf $6.5M. Das Unternehmen wies eine starke Bilanz mit $11.7M in bar auf und ist nach der Rückzahlung von $2M an wandelbaren Schulden praktisch schuldenfrei.
Das Unternehmen kündigte den geplanten Verkauf seiner Hope-Anlage für $4.5M an, mit einer erwarteten Schließung im zweiten Quartal, während die Betriebe in die Barrie-Anlage konsolidiert wurden, was zu jährlichen Einsparungen von $1M führte.
- 27% revenue growth to $42M in 2024
- 83% growth in international medical cannabis revenue to $17.7M
- Gross profit margin improved to 31% from 18%
- Adjusted EBITDA loss reduced by 81% to $1.9M
- $4.5M expected from Hope facility sale
- Strong cash position of $11.7M with minimal debt
- $1M annual cost savings from facility consolidation
- Still operating at a loss with -$1.9M Adjusted EBITDA in 2024
- Q4 2024 still showed negative Adjusted EBITDA of -$0.1M
Annual Net Revenue Increase of
Success on Path to Profitability with
MediPharm significantly improved profitability in 2024, addressing cost structure and gross profit while simultaneously reducing operating expenses and substantially growing revenues. The Company is in a strong cash position, is materially debt free, up to date on all cannabis excise duties and regulatory fees and currently has full unencumbered ownership of all production facilities.
Full Year 2024 Highlights
- Net revenue increased by
$9M 27% to$42M $33M - Gross profit of
$12.8M 31% representing a significant improvement over 2023 of$5.8M 18% - Adjusted EBITDA(1) loss of
$1.9M $8.3M 81% versus 2023. Adjusted EBITDA(1) continues to improve driven by margin expansion initiatives and cost reductions - Key operations from the Hope facility were transitioned to the Barrie facility resulting in over
$1M $4.5M - Repaid
$2M
Q4 2024 Highlights
- Revenue of
$12M $2.9M 32% versus Q4 2023 - Gross profit of
$3.6M 30% representing a significant improvement over Q4 2023 of$2.2M 24% - Adjusted EBITDA(1) loss of
$0.1M $1.5M 94% versus Q4 2023 - International revenue represented
54% of revenue versus27% in Q4 2023 - Strong balance sheet, relative to many peer companies, with
$11.7M million
Three months ended | |||||
31-Dec-24 | 30-Sep-24 | 30-Jun-24 | 31-Mar-24 | 31-Dec-23 | |
$'000s | $'000s | $'000s | $'000s | $'000s | |
Revenue | 12,042 | 9,798 | 10,350 | 9,771 | 9,131 |
Gross Profit | 3,616 | 3,120 | 3,418 | 2,651 | 2,196 |
Opex (1) | (5,109) | (5,442) | (5,382) | (5,648) | (5,020) |
Adjusted EBITDA (2) | (96) | (743) | (124) | (949) | (1,579) |
(1) | Opex includes general administrative expense, marketing and selling expenses and R&D expenses. |
(2) | Adjusted EBITDA is a non-IFRS measure. See "Non-IFRS Measures". |
International Medical Cannabis Revenue growth of
- International Medical Cannabis 2024 revenue of
$17.7M 83% from$9.7M Germany andAustralia , and new global and domestic partnerships. - International revenue accounted for
54% of Q4 revenue and increased from$2.4M $6.5M - Achieved Pharmaceutical GMP certification with Brazilian Health Regulatory Agency (ANVISA) and is one of just a few North American companies to receive multiple sanitary authorizations for cannabis products while holding an ANVISA GMP license.
- MediPharm continues to focus on innovative and complex pharmaceutical cannabinoid solutions with global applications, including Dronabinol and the previously announced global licensing agreement with Remidose Aerosols Inc. for advanced metered dose inhalers.
Committed to Advancing Patient Outcomes & Consumer Wellness with Premium Products, Clinical Research & CBD Natural Health Product Consultation.
- MediPharm continues to participate in Health Canada consultations on Natural Health Products Containing CBD ("NHPCC") and is uniquely positioned for success in that future channel(2), with a strong foundation for potential NHPCC products, given our leadership in CBD products, GMP facility, and DEL licence.
- MediPharm remains committed to patients in
Canada and abroad, including engagement in Clinical Research to support pharmaceutical cannabinoid innovation and clinical advancements. Academic and commercial research partners have selected MediPharm's pharma-grade products for their clinical research, with various clinical trials advanced to Phase 1 and Phase 2 in 2024. Please see the table below for updates on active research engagements.
Researcher | Indication | Phase | Recent Milestone |
USC (University of | Treatment of Alzheimer's | Phase 2 | FDA approval of Clinical trial material ("CTM") Second CTM delivery |
McMaster University | Treatment of post-surgical | Phase 2 | CTM delivered and Patient dosing commenced in Additional CTM delivered in |
University Health | Improving Pain Disability with | Pilot | CTM Delivered and Additional CTM delivered in |
McMaster University | Insomnia in depressive | Phase 2 | CTM Shipment in Q1 2023 Patient dosing commenced Additional CTM delivered in |
Centre for Medical | PK of single dose THC/CBD in | Phase 1 | Patient dosing completed |
University of Manitoba | Chronic Headaches in | Phase 2 | Health Additional CTM delivered in |
University of Manitoba | Tolerability Study of management in pediatric oncology | Phase 2 | Health obtained (No Objection Letter). Material shipped in Q3 2024. |
University Health | Restless Legs Syndrome | Phase 2 | PI has submitted application |
University of Manitoba | Drug Resistant Epilepsy | Phase 2 | Regulatory package in |
BC Cancer Agency | Symptom Management in | Phase 2 | CTM shipments in Q1, Q2, |
Management Commentary
David Pidduck, CEO, MediPharm Labs commented, "We are pleased with our progress towards profitability in 2024, driven by
Greg Hunter, CFO, MediPharm Labs added, "2024 was a transformational year for MediPharm Labs with
An updated company presentation including select highlights from the period ended December 31st, 2024 will be made available on MediPharm's website, this in lieu of a quarterly earnings call hosted by management.
About MediPharm Labs
Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets.
In 2021, MediPharm Labs received a Pharmaceutical Drug Establishment Licence from Health Canada, becoming the only company in North America to hold a domestic Good Manufacturing Licence for the extraction of natural cannabinoids. The Company carries out its operations in compliance with all applicable laws in the countries in which it operates.
In 2023, MediPharm acquired VIVO Cannabis Inc. which expanded MediPharm's reach to medical patients in Canada via Canna Farms medical ecommerce platform, and in Australia and Germany through Beacon Medical PTY and Beacon Medical GMBH. This acquisition also included Harvest Medical Clinics in Canada which provides medical cannabis patients with Physician consultations for medical cannabis education and prescriptions.
Notes: | |
(1) | This is a non-IFRS reporting measure. See "Non-IFRS Measures" below. |
(2) | This is a forward-looking statement and based on a number of assumptions. See "Cautionary Note Regarding Forward-Looking Information" below. |
Non-IFRS Measures
This press release contains references to "Adjusted EBITDA", which is a non-IFRS financial measure. Management believes that this supplementary non-IFRS financial measure provides useful additional information related to the operating results of the Company. This non-IFRS financial measure is not recognized under IFRS and, accordingly, users are cautioned that this measure should not be construed as an alternative to net income (loss) and gross profit determined in accordance with IFRS as measures of profitability or as alternatives to the Company's IFRS-based Financial Statements. The non-IFRS measure presented may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is a measure of the Company's overall financial performance and is used as an alternative to earnings or income in some circumstances. Adjusted EBITDA is essentially net income (loss) with interest, taxes, depreciation and amortization, non-cash adjustments and other unusual or non-recurring items added back. Adjusted EBITDA has limitations as an analytical tool as it does not include depreciation and amortization expense, interest income and expense, finance fees, gain in revaluation of derivative liabilities, taxes, government grants including rent and wage subsidies, one-off transactions, impairment losses on inventory and on fixed assets and intangibles, write down of deposits and share-based compensation. Because of these limitations, Adjusted EBITDA should not be considered as the sole measure of the Company's performance and should not be considered in isolation from, or as a substitute for, analysis of the Company's results as reported under IFRS. Adjusted EBITDA, as used within the Company's disclosure, may not be directly comparable to Adjusted EBITDA used by other reporting issuers. Adjusted EBITDA does not have a standardized meaning and the Company's method of calculating such non-IFRS measure may not be comparable to calculations used by other companies bearing the same description.
The following table reconciles the Company's net operating income (loss) (as reported) and Adjusted EBITDA for the periods presented:
Three months ended | ||||
December 31, | September 30, | June 30, | March 31, | |
$'000s | $'000s | $'000s | $'000s | |
Net operating loss | (1,803) | (2,708) | (2,573) | (3,725) |
Adjusted for: | ||||
Share-based compensation expense | 227 | 160 | 576 | 895 |
Depreciation and amortization | 563 | 518 | 731 | 790 |
Restructuring related severance expenses | 80 | 87 | 305 | 755 |
Impairment loss on remeasurement of | - | 113 | 77 | - |
Gain on disposition of assets | - | - | (20) | (276) |
Early lease termination cost | 70 | - | - | 44 |
Incremental cost of cannabis inventory | 251 | 110 | 162 | 327 |
Terminal costs for closed facility (2) | - | - | 95 | 323 |
One-off derecognition of liabilities | - | - | - | (130) |
Write down of inventories (3) | 10 | 27 | 60 | - |
Fair value adjustments in gross profit | (53) | 519 | 170 | 48 |
Indirect tax reassessments (4) | - | 153 | 240 | - |
Payroll tax assessment | - | - | 42 | - |
Miscellaneous | 150 | - | 11 | - |
Transaction costs (5) | 409 | 278 | - | - |
Adjusted EBITDA | (96) | (743) | (124) | (949) |
Notes: | |
(1) | This relates to the reversal of a former impairment of a long outstanding receivable. |
(2) | Incremental cost of cannabis inventory acquired in a business combination represents the fair value realized on sale of cannabis inventory acquired in a business combination. |
(3) | This adjustment is for unusual inventory write-downs only and not the total value of inventory written down. |
(4) | This relates to liabilities recognized in connection with notices of reassessment related to prior periods issued by the tax authorities. |
(5) | This includes non-recurring fees, expenses associated with the evaluation of potential mergers and acquisitions, fees related to reorganization of legal entities, and fees related to the proposed sale of the |
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, statements regarding: the Company's anticipated sale of the Hope facility, including the anticipated timing for closing; the future of Canadian regulations surrounding natural health products containing CBD; the Company's future success in NHPCC channels; the progress of the Company's clinical research; the Company's ability to onboard new customers and distribution partners to meet the growing global demand for premium cannabinoid products; the Company's progress toward profitability; and the Company's international success and growth potential. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in MediPharm's filings, available on the SEDAR+ website at www.sedarplus.ca. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.
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SOURCE MediPharm Labs Corp.
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