Sativa Wellness Group Announces First Quarterly Profit in Filing Q2 2021 Half Year Financial Statements
Sativa Wellness Group reported its first quarterly profit for Q2 2021, achieving revenues of C$6.0 million, an increase of 828% compared to Q2 2020. The company's gross profit rose by 804%, totaling C$3.3 million. This marks a turnaround from a loss of C$2.4 million in the same period last year to a net profit of C$79,000. With 57 operational COVID testing clinics and an ongoing expansion in the CBD sector, Sativa has significantly improved its financial standing amidst strategic restructuring into three business units.
- Q2 2021 revenue increased by 828% to C$6.0 million, the highest revenue quarter to date.
- Gross profit rose 804% to C$3.3 million, maintaining a healthy margin at 55.0%.
- First net profit of C$79,000 compared to a loss of C$2.4 million in Q2 2020.
- Phytovista ranked 2nd out of 32 laboratories in a UK CBD testing trial.
- New strategic restructuring into three business units to drive focused growth.
- Half-year loss of C$1.5 million, although improved by 63% year-over-year.
VANCOUVER, BC / ACCESSWIRE / August 12, 2021 / Sativa Wellness Group Inc. (CSE:SWEL) ("Sativa Wellness" or the "Company") announced today its first quarterly profit for Q2 2021. The company has filed the Financial Statements and Management's Discussion and Analysis for Q2 June 2021 with exceptionally strong results which demonstrates the continued growth.
The Company has exceeded all targets set to meet its ambition of diversifying within the Wellness sector through the rollout of additional COVID testing clinics and as at the date of this announcement, the Company has 57 clinics in operation. The Company is actively looking at different tests to expand the clinic portfolio and opportunities to grow the testing business.
The Company has been pursuing growth opportunities in the CBD arena while continuing to produce quality isolate and distillate in Poland and a range of quality end products through its ‘Goodbody' brand in the UK.
The UK Government Chemist team has published a report summarizing the findings of a ring trial to assess laboratories' performance in measuring CBD and controlled cannabinoids. 32 national and international laboratories participated in the ring trial. We are very proud that, based on the average reported scores PhytoVista, the Sativa Wellness Group ISO accredited laboratory, ranked 2nd out of 32 UK and international laboratories.
Q2 2021 Highlights compared to Q2 2020:
- Revenue
828% higher Q2 2021 vs comparative quarter 2020. C$6.0m (£3.48m) revenue, C$5.3m (£3.10m) more than the equivalent period the previous year, making it the highest revenue quarter since inception, the second quarter in succession to exceed the turnover of previous quarters. The half year was up563% with C$8.3m (£4.86m) revenue, C$7.1m (£4.12m) more than the equivalent period the previous year. The half year revenue already exceeds any previous full year. - Gross profit
804% higher Q2 2021 vs comparative quarter 2020. C$3.3m (£1.92m) which is C$2.9m (£1.70m) more than the equivalent period the previous year. The gross profit percentage margin at55.0% was in line with the previous year of56.5% - First net profit C
$79 k (£46k) compared to C$2.4m (£1.43m) loss in the same period the previous year. The resulting half year loss of C$1.5m (£874K) compared to C$4.0m (£2.35m) the previous year was a63% improvement. - First quarter profit per share, 1.30 pence improvement. 0.02 cents (0.01 pence) profit compared to (2.21) cents (1.29) pence loss in the same period the previous year.
- Phytovista Laboratories Granted ISO Accreditation, the Group UK Laboratory, Phytovista Laboratories was granted accreditation to ISO/IEC 17025:2017, General requirements for the competence of testing and calibration laboratories achieved ISO17025.
- Goodbody Botanicals was listed on the UK government website to offer 2- and 8-day quarantine tests for travelers returning to the UK, offering a significant opportunity for the COVID testing clinics.
- Two tranches of the Company's non-brokered private placement were issued at a price of C
$0.07 875 per Unit of 45,888,730 Units for gross proceeds of C$3,613,737.49 and 12,701,557 Units for gross proceeds of C$1,000,247.61 . - The appointment of a new, highly experienced CEO - Marc Howells - to further support the business expansion program.
- The appointment of a new, highly experienced CFO - Anne Tew - to the Board.
- Highlights Subsequent to Q2 2021:
- Announced the Group strategy to restructure the business into three strategic business units (SBU's) to drive highly focused activity and development. Each SBU has a clear business head and strategic plan supported by central resources:
- Goodbody Botanicals (SBU) - CBD. Manufacturing to Consumer range of ‘gold-standard' CBD based products.
- Phytovista (SBU) - ISO Accredited, European Cannabinoid & Hemp testing facility.
- Goodbody Wellness (SBU) - Clinic Testing Services, Direct to consumer (B2C), and Direct to business services (B2B).
Geremy Thomas, Executive Chairman, says; "I am absolutely delighted by the fantastic revenues driven by strong growth following the changes made in Q1. The changes I laid out in my last announcement have started to impact the overall business performance and this profit is the result we have worked very hard to achieve. Cash flow remains strong and positive and the strengthened management team continue to focus on implementing the strategy laid out for the three business units to deliver even more success."
The 2020 Financial Statements and Management Discussion and Analysis, the Q2 2021 Financial Statements and Management Discussion and Analysis and further information regarding the Company can be found under the Company's profile on www.sedar.com.
The directors of the Company accept responsibility for the contents of this announcement.
The Q2 2021 Financial Statements are available under the Company's profile on SEDAR at www.sedar.com.
The Directors of the Company accept responsibility for the contents of this announcement.
On behalf of the Board of Directors,
Marc Howells
Chief Executive Officer
Sativa Wellness Group Inc.
+44 (0) 20 7971 1255
enquiries@sativawellnessgroup.com
www.sativawellnessgroup.com
Anne Tew
Chief Financial Officer
Sativa Wellness Group Inc.
+44 (0) 20 7971 1255
enquiries@sativawellnessgroup.com
www.sativawellnessgroup.com
Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release. This news release contains certain 'forward-looking information' within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute 'forward-looking statements' within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Sativa's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes' 'plan is' or variations of such words and phrases or may contain statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'will continue', 'will occur', 'will be achieved' or 'shortly'. The forward-looking information and forward-looking statements contained herein include, but are not limited to information concerning the Financials Statements and plans to build on the financial strategy.
Although Sativa believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this news release are made as of the date of this press release, and Sativa does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
SOURCE: Sativa Wellness Group Inc.
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