Ultra low-cost production at $0.08 cost per gram at outdoor facility
Average net revenue per gram equivalent of $15.11 for medical cannabis sales Medical cannabis sales up 43% Q/Q, adult-use cannabis sales up 53% Q/Q Active, registered medical cannabis patients increase 48% Q/Q $57M in cash/marketable securities, $83M in working capital Total expenses decrease 30% Q/Q Net income improves to $1.9M, from $11.5M loss Q/Q Adjusted EBITDA improves 44% Q/Q
TORONTO – Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH) (“Aleafia Health” or the “Company”) is pleased to report its financial results for the period ended September 30, 2019.
“Aleafia Health has now reached the next phase in our development as we report our first profitable quarter. It saw us realize substantial improvements in all critical financial metrics, as we scale our cannabis health and wellness ecosystem in Canada and globally. Over the last year, we have overseen major cannabis facility build-outs, all of which are now substantially complete. During this industry transition period, our prudent allocation of capital and focus on sustainable growth sets us apart,” said Aleafia Health CEO Geoffrey Benic.
“Today, we believe that with our outdoor grow facility, we are among the lowest-cost Canadian producers, while realizing a strong average revenue per gram sold. These results demonstrate the executional capabilities of our management team, with a clear path towards continued profitability for our young company.”
THIRD QUARTER CONDENSED INCOME STATEMENT
Financial Results ($,000s) 30-Sep-19 30-Jun-19 % Change Total Revenue 5,290 3,951 34% Gross Cannabis Revenue 4,157 2,532 64% Clinics Revenue1 1,133 1,419 -20% Gross Profit before fair value adjustment 2,032 557 265% Total Expenses 8,460 12,069 -30% Adjusted EBITDA2 (loss) (2,526) (4,538) -44% Net Income (loss) 1,859 (11,477) n/a Combined research and consultation revenue These terms and non-IFRS measures are defined or reconciled in Aleafia Health’s Q3 2019 MD&A
Revenue Growth: A robust increase in cannabis sales drove record revenue in the quarter. During the reporting period, revenues from the sale of packaged consumer products represented 94 per cent of net cannabis revenue.
Cannabis Revenue ($,000s) 30-Sep-19 30-Jun-19 % Change Net medical cannabis revenue 1,450 1,011 43% Net adult-use revenue 2,152 1,409 53% Net bulk LP-to-LP revenue 224 0 n/a Total net cannabis revenue 3,826 2,420 58%
Ultra low-cost production: As previously announced and subsequent to the reporting period, the all-in cash cost per gram to