WeedMD: 102% Record Increase In Q1 2021 Revenue, Adjusted EBITDA Improves Over $31M Sequentially

Author: Jelena Martinovic | June 29, 2021 02:52pm

Medical cannabis company WeedMD Inc. (TSXV:WMD) (OTCQX:WDDMF) (FSE: 4WE) saw gross revenue climb to CA$12.9 million ($10.46 million) in the first quarter of 2021 - a 7% spike compared to what the Toronto, Canada-based company disclosed in its previous guidance for the period.

In WeedMD's earnings report published Tuesday, CFO Beth Carreon credited the 102% sequential net revenue growth, which amounted to CA$10.3 million, and over CA$31 million sequential margin improvement through the quarter to the company's "transformation initiatives in the areas of growth, efficiency, optimization, quality, and talent."

The company also saw an improvement in the selling, general and administrative expenses which dropped by 66% from the prior period.

"Our year-to-date, record-breaking growth reflects our robust sales strategy rooted in our optimization initiatives that drove product innovation, brand recognition, retail engagement, and a 30% increase in grade A production to consistently meet our targets and fill rates – all of which contributed to record revenues from our direct-to-consumer channels in both adult-use and medical sales," said George Scorsis, WeedMD's interim CEO and executive chair

Scorsis was appointed to head the company in January after Angelo Tsebelis stepped down.

Other Highlights From Q1 2021

Gross profit, before changes in fair value, amounted to CA$250 000 versus a gross loss of CA$22.5 million in the previous quarter.
The average yield per plant was 104 grams, compared to 76 grams in the corresponding quarter of 2020.
The company sold a total of 3,878 kgs of cannabis during the quarter, versus 5,084 kgs in the same period of last year.
The average cost per gram of inventory on hand significantly dropped to CA$0.51 from CA$2.54 in the same quarter of 2020.
Selling, general and administrative expenses totaled CA$6 million.
Adjusted EBITDA came in negative at CA$400 000, compared to a CA$31.6 million loss in the prior period and a negative adjusted EBITDA of CA$2.5 million in the first quarter of last year.
In March, the company raised $17.25 million through a bought deal short-form prospectus offering of roughly 36 million units at 48 cents per unit.
Photo by Kimzy Nanney on Unsplash