Entourage Health Stock Slightly Up After Revealing Third Consecutive Quarter Of QoQ Revenue Growth And Expansion Of Saturday Cannabis Brand Into Quebec

Author: Jelena Martinovic | August 11, 2021 11:13am

Canadian cannabis producer Entourage Health Corp. (TSXV:ENTG) (OTCQX:WDDMF) (FSE: 4WE), formerly known as WeedMD Inc., announced its financial results Tuesday for the three and six months ended June 30, revealing a record second-quarter 2021 total revenue of $13.8 million and net revenue of $10.6 million. That’s a total revenue increase of 92% and a net revenue increase of 81% year-over-year.

“Our third consecutive quarter of sequential revenue growth is indicative of our strong sales momentum and is a direct result of our strategic business transformation initiatives leveraged to increase market share and improved gross margin performance,” George Scorsis, Entourage's

interim CEO and executive chair disclosed.

Q2 2021 Financial Highlights

Gross profit, before changes in fair value, totaled $3.1 million, compared to an 898 000 gross loss in the same quarter of 2020.
The gross margin before changes in fair value was 29.4%.
Loss and comprehensive loss totaled $9.95 million, which compared to a roughly $8.9 million loss and comprehensive loss in the prior-year period.
Adjusted EBITDA came in negative at $3.3 million, versus a $2.1 million loss in the corresponding period of last year.
As of June 30, the company held $35.4 million in inventory and biological assets. In addition, it had $166.8 million in total assets, $15.5 million in cash and cash equivalents, and working capital of $18.1 million.
Total dried cannabis sold in Q2 2021 was 4,551 kgs compared to 977 kgs in Q2 2020.
Selling, general and administrative expenses amounted to $10.4 million, compared to $6 million in the prior period and $4.8 million in the same period of 2020.

Entourage’s Saturday Cannabis Brand Debuts In Quebec

On the heels of revealing its latest financial results, Entourage announced the expansion of the Saturday Cannabis brand into Quebec, Canada.

The company currently has more than 10 product listing in the province, following the finalization of the first shipments of Saturday’s Lemon Z and Ultra Sour dried flower cultivars to the Société québécoise du cannabis.

“Our products are taking top billing at many provincial retail outlets due to our consistent ability to deliver quality-produced cannabis, and in the case of Quebec, we’re doing so alongside the very talented team of marketing and distribution professionals at ROSE LifeScience,” Joseph Mele, senior vice president of commercial, sales and marketing at Entourage Health, commented on Wednesday.