Canopy Growth Corporation (NASDAQ: CGC) is a global, diversified CBD-based and cannabis consumer product corporation that focuses on strengthening communities, ending prohibition, and improving lives by showing the true power of cannabis recently reported revenue growth of 23% in Q1 F22.
Canopy’s Chief Executive Officer, David Klein, said that with a robust foundation and right strategy in place, they’re confident in their ability to achieve long-term success as the company’s brands and products show how appealing they are to the consumers in their core markets. He continued to say that while they’re encouraged by the United States’ regulatory advancements, the company isn’t waiting and will continue to scale the business efforts on Canadian and U.S. soil with a new, innovative, and exciting product pipeline set for the fiscal quarters ahead.
The CEO said that the company continues to boost operational efficiencies and cost savings across the board and are quite on track to hit their target range of $150 to $200 million in the next fiscal year. He confirmed that they’re looking forward to scaling their new and improved operating model as they push their profitability goals forward.
Recorded a $136 million net revenue in Q1 F22, a 23% increase from what they reported in the same quarter of the previous fiscal year. This is was largely due to the significant double-digit growth the company experienced across cannabis products in Canada and other CBD-related consumer products. The cannabis net revenue came to about $93 million in this quarter being highlighted, which represented a 17% increase from the same quarter of the previous fiscal year.
There was a decline of 17% in total operating expenses in Q2 F22. Year-over-year reductions in R&D (research and development) and G&A (general and administrative) are one of the things that helped drive the decline of total operating expenses in this quarter. The company also reported $390 million in net earnings in Q2 F22 and $64 million Adjusted EBITDA in the same quarter.
GrowGeneration Corp (NASDAQ: GRWG) Reports $125.9 Million Revenue in Q2 F21
GrowGeneration Corp (NASDAQ: GRWG) is a vast chain of organic garden and specialty hydroponic facilities with fifty-eight centers across twelve states, which recently announced record revenue of $125.9 million in Q2 F21. This was way more than the $43.5 million they recorded in the same quarter of the previous fiscal year. GrowGeneration also reported a record pre-tax GAAP net income of roughly $9.6 million in the same quarter, more than the $2.7 million they had in the same quarter of the previous fiscal year. In addition, they recorded a $0.11 diluted earnings per/share, tax expense included in the same quarter.
The company’s Chief Executive Officer and Co-Founder, Darren Lampert, said that GrowGeneration’s team managed to deliver an exceptionally robust second quarter, with a 190% increase in revenues compared to what they recorded in the same quarter of the previous financial year. The entire company managed to bring in more revenue in Q1 F21 than it did the whole of the last financial year. The CEO said that they closed twelve acquisitions this financial year, adding a total of twenty hydroponic retail sites, bringing the company’s capacity to fifty-eight. He further claimed that their ability to both buy and attract the country’s largest hydroponic operators was again evident when they signed the nation’s third-largest hydroponic operator, HGS Hydro. It looks like the strategies that were implemented by the company many quarters ago are starting to help boost margins.
Mr. Lampert said that they increased their inventory positions in all the key product sectors so that they could be well-prepared for price increases. The company also expanded its private-label purchases. He claimed that their proprietary and private-label products now make up roughly 7% of their overall sales. He said that he was both encouraged and proud with their gross profit margin, which happened despite container cost increases, supply chain interruptions, and port delays.
Neptune Wellness Solutions Inc (NASDAQ: NEPT) Annonces a Revenue of $12.4 million in Q1 F21
Neptune Wellness Solutions Inc (NASDAQ: NEPT) is a fully integrated, diversified health and wellness corporation that focuses on purpose-driven, plant-based and sustainable lifestyle brands which recently announced its operating and financial results for Q1 F21.
Key Financial Highlights
The company recorded $12.4 million in revenues, more than the $11.2 million it recorded in the same quarter of the previous fiscal year. It also exceeded the predicted total revenue range of about $10 million to $12 million. The $12.4 million Q1 F21 revenue increased 83% from the $6.8 million recorded in Q4 of the previous year. It also reported a $2.9 million gross profit loss (23%) compared to the $3.3 million (29%) reported in the same quarter of the last fiscal year. The company’s net loss was $23 million, and it had an Adjusted EBITDA loss of about $15.9 million.
Neptune Wellness’ Chief Executive Officer and President, Michael Cammarata, said that the Q1 revenue they recorded exceeded what they had expected with an 83% sequential development due to their delivery of innovative products across numerous verticals as well as their expansion of the company’s Sprout distribution. He further claimed that the executive team saw more needs the company needed to meet to maximize shareholder value. The CEO said that they had requested the BoD to develop a Strategic Review Committee designed to analyze how the company can be more profitable.
The Strategic Review Committee was tasked with evaluating Neptune’s long-term strategy, capital development, and business plan to find the alternatives that could help boost shareholder value. These strategic options included, but weren’t limited to, strategic business combinations, changes in operations/strategy, proceeding with the execution of the business plan that already exists, or a spin-off/divestitures of a part of the company. The company also continues to focus on developing affordable, high-quality consumer products.
Heritage Cannabis Holdings Corp (OTCMKTS: HERTF) And Avicanna Inc. Enter Product Licensing and Royalty Agreement
Heritage Cannabis Holdings Corp (OTCMKTS: HERTF) has signed an exclusive IP licensing and royalty deal with Avicanna Inc. Avicanna is a biopharmaceutical firm specializing in the development, production, and marketing of plant-derived CBD products.
Heritage to avail Avicanna products on Q4
The Licensing Agreement covers the marketing of Avicanna’s advanced CBD-based topical treatments under Heritage’s medical cannabis brands. Avicanna’s patented cannabis topical products, created years of comprehensive research by the company’s scientists, are among the Branded Products. The formulations are supported with pre-clinical research, including two SKUs backed with complete human trials. Heritage’s vast medical sales channels across Canada will introduce the Branded Products in Q4 2021.
Umar Syed, Heritage’s president for the medical division, commented, “We are excited to add Avicanna’s innovative topical products to our portfolio of highly effective medical CBD products. They are a great strategic fit. We are very impressed with Avicanna’s diligent R&D approach for developing highly effective topical products formulated with pharmaceutical technology and which are supported with evidence of efficacy, much like the existing Opticann portfolio that includes oral products that use the patented VESIsorb technology and sublingual CBD filmstrips that use the patented Versafilm technology. The Licensing Agreement offers Heritage speed-to-market with highly effective topicals and we see this as the beginning of a highly successful commercial partnership.”
Avicanna to receive royalty payment on sales
Avicanna has exclusively licensed, subject to certain conditions and exceptions, the use of certain proprietary product formulations to Heritage to be sold and marketed under Heritage’s medical Opticann branded products throughout Canada under the terms of the Licensing Agreement. The agreement has an initial three-year period. In addition, heritage must reach specified annual sales targets for each Branded Product licensed under the Licensing Agreement, and it will pay Avicanna a royalty for products sold.
Aras Azadian, Avicanna CEO, said, “We look forward to collaborating with the Heritage team to extend our proprietary and evidence-based topical formulations to more Canadian patients and expand into more medical channels nationwide.”