Marijuana Stock Aleafia Health Announces Record Revenues
Canadian marijuana stocks continue to experience high levels of volatility this year due to the everpresent uncertainty of long term viability and the COVID crisis. In fact, most marijuana stocks are down 50-90% over the last twelve months. Previous “darlings” of the cannabis industry like Tilray (TLRY), Canopy Growth (CGC), Aphria (APHA), and Organigram (OGI) are all suffering significant losses in stock price but this has created opportunities for smaller, lesser-known marijuana stock investment opportunities such as Aleafia Health.
Aleafia Health Inc. (ALEF.TO) (ALEAF) is an industry-leading, vertically integrated, and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada and in international markets. The Company operates medical clinics, education centers, and production facilities for the production and sale of cannabis. In today’s earnings call, this Canadian cannabis operator announced record-setting revenues.
Aleafia Health: Record Revenues for this Marijuana Stock
With record-setting revenues, positive cash flow, excellent gross margins, and enough cash on hand to weather the fallout from the coronavirus, Aleafia Health is poised for success. Here are some of the highlights from today’s earnings call:
- $13.7M cannabis net revenue, a 183% increase over the previous quarter, and 2,486% increase over the prior year’s quarter
- Positive cash flow from operations
- 85% gross margin on cannabis net revenue
- 3% increase in SG&A expenses over the previous quarter
- $35M in cash, cash equivalents and marketable securities
- Total liabilities declined by $7.9 million over Q4 2019
- Fifth consecutive quarter reporting record revenue, a second consecutive quarter of positive adjusted EBITDA
- Adjusted EBITDA margin of 44%
- Cash cost to produce per gram of $0.31
“Our disciplined, sustainable growth has resulted in a breakthrough quarter for Aleafia Health. Our patient-centric approach remains at the core of our business as we build our cannabis health and wellness ecosystem,” said Aleafia Health CEO Geoffrey Benic.
“The prudent allocation of capital instituted over the course of 2019 is reflected in streamlined expenses, a fifth consecutive quarter of solid revenue growth, and industry-leading gross margin among North American cannabis industry reporting issuers. With a fully licensed infrastructure now in place, we look forward to leveraging our lean, integrated production eco-system for operational and financial success. In the second half of 2020, we look forward to introducing an exciting roster of new Cannabis 2.0 product formats tailored to health and wellness consumers while further expanding the reach of our existing product portfolio.”
Aleafia Health: Strong Cannabis Operations
Aleafia Health owns three significant licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules, and sprays. Aleafia Health operates the largest national network of medical cannabis clinics and education centers staffed by MDs, nurse practitioners, and educators and operates internationally in three continents.
Innovation, the heart of Aleafia Health’s competitive advantage, has led to the Company maintaining a medical cannabis dataset with over 10 million data points to inform proprietary illness-specific product development and its highly differentiated education platform FoliEdge Academy. The Company is committed to creating sustainable shareholder value; the TSX Venture Exchange named Aleafia the 2019 top-performing cannabis company prior to its graduation to the TSX.
Aleafia Health: This Canadian Cannabis Company is Turning the Corner
With its expanded operations, Aleafia is now positioned for its next growth phase. Aleafia is now on its fifth consecutive quarter of revenue growth. Strong management continues to guide this cannabis company’s cost-effective growth strategy and we anticipate a continued increase in cash flow from these operations. With strong operations and a strong focus on both domestic and international opportunities, we believe this is one of the few Canadian marijuana stocks with high-growth potential and certainly one of the top marijuana stocks to add to your watchlist.
Marijuana Stock Aleafia Health Announces Record Revenues
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