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MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) posted a 67% rise in revenue and a narrower net loss for the first quarter ending March 31, as expansion looks to backpack off regulatory momentum in its key markets.

The Toronto-based company’s revenue came in at C$9.8 million Canadian dollars (US$7.3 million), up from C$5.8 million in the same period last year. This beat Seeking Alpha’s expectations by nearly C$2.8 million.

Gross profit rose to C$2.7 million, or 27% of revenue, a significant improvement from the 6.6% gross margin recorded in the first quarter of 2023 and the 24.3% margin in the fourth quarter of 2023.

Net loss narrowed to C$3.6 million from C$3.1 million in the prior-year period, according to company filings. The company’s adjusted EBITDA loss also improved by 70% to C$900,000 from C$3.1 million in the first quarter of 2023. The firm said it expects more profitability improvements in 2024, with plans to optimize its production and logistics facilities, which could lead to an additional C$1 million to C$2 million in adjusted EBITDA.

“MediPharm’s balance sheet is in an excellent position to consider future investments in growth,” CEO David Pidduck said in a statement. “With adjusted EBITDA getting close to breakeven, the leadership team can now devote even more energy to growing our business.”

At the end of March, the company had a strong balance sheet with C$17 million in cash and less than C$3 million in debt.

MediPharm Labs said its optimistic that the potential reclassification of cannabis as a Schedule III drug could allow for increased medical research. The company, which specializes in precision-based cannabinoids, believes its FDA-inspected facility and experience with DEA-approved clinical trials position it well to capitalize on future opportunities in the U.S. market.

In the first quarter, the company also saw growth in its international medical cannabis sales, particularly in Germany and Australia, driven by regulatory changes and an expanded product portfolio. MediPharm Labs now has 14 product registrations under its Beacon brand in Germany, up from five in the fourth quarter of 2023.

“Regulatory changes in Germany and Australia and potential upcoming changes in the U.S. are all very favourable for the company,” Pidduck said.

The post MediPharm Labs boosts revenues, trims losses as prospects brighten appeared first on Green Market Report.

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Adam Jackson, KahliBuds, 420GrowLife