- Aleafia Health (AH) has reported financial results for Q1 2021, including more than doubling adult-use cannabis net revenue from Q1 2020
- Medical cannabis net revenue increased 95 per cent over Q1 2020
- Active registered patients increased to 17,637, an increase of 61 per cent over Q1 2020
- The company entered into a 10-year agreement with Unifor to support members securing medical cannabis insurance coverage
- The company also introduced multiple products, including its bestselling Kin Slips cannabis-infused sublingual strips
- Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company
- Aleafia Health (AH) is down by 12 per cent and is currently trading at $0.44 per share
Aleafia Health (AH) has reported financial results for Q1 2021, including more than doubling adult-use cannabis net revenue from Q1 2020.
Highlights
- Medical cannabis net revenue was C$2.7 million, an increase of 95 per cent over Q1 2020
- Active registered patients increased to 17,637, an increase of 61 per cent over Q1 2020
- Medical cannabis adjusted gross margin before FV adjustments improved for the second consecutive quarter to 53 per cent
- Revenue per gram equivalent sold improved for the fourth consecutive quarter to $8.46
- Adult-use cannabis net revenue was $1.7 million, an increase of 143 per cent over Q1 2020
- Adult-use cannabis adjusted gross margin before FV adjustments improved to 56 per cent from 30 per cent in Q1 2020
- Adult-use cannabis revenue in the first 41 days of Q2 2021 has surpassed total adult-use cannabis revenue for Q1 2021
- Repayment of $25 million of convertible debt reduces Aleafia’s total debt by 43 per cent
Product and Operational Highlights
- Kin Slips cannabis-infused sublingual strips were the top-selling adult-use product category during the quarter
- The company launched its Omega CBD Soft Gels, the first Canadian cannabis product to be suspended in fish oil containing omega-3
- In March 2021, Aleafia released THC Soft Chews, its first cannabis edible product
- In December 2020, the company launched a high-potency cannabis oil, CBD 50, with 50 mg per millilitre of CBD oil
- In early Q2 2021, Aleafia launched its high-frequency brand Divvy including a pre-roll line extension
Unifor Program and Ford Motor Company of Canada
- The company entered into an exclusive 10-year agreement with Unifor to support members securing medical cannabis insurance coverage. The company also launched the program to employees of the Ford Motor Company of Canada, with the first patients entering the program in May 2021
Distribution Centre License
- On February 12, 2021, Aleafia’s medical subsidiary Emblem Cannabis received a Health Canada Processing License for its new distribution centre. Located minutes from Toronto Pearson International Airport, the centre greatly strengthens the company’s downstream supply chain
Geoffrey Benic, Aleafia Health’s CEO, commented,
“This quarter saw us achieve important executional breakthroughs as we realized the exponential increase of our cannabis product portfolio. Likewise, as we benefit from greater scale, we are demonstrating substantial improvements in the profitability of our core adult-use and medical cannabis product sales, contrasting with the broader industry trend of price and margin compression.
To further leverage product portfolio expansion, we have only just begun the deployment of our highly differentiated medical cannabis ecosystem through the trailblazing exclusive agreement with Unifor, Canada’s largest private sector union. The ability to service a captive audience of union members who receive insurance coverage for medical cannabis is an important catalyst. We believe that this sets the table for a strong 2021, driven by repeatable, profitable sales in the medical, adult-use and international markets.”
Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company.
Aleafia Health (AH) is down by 12 per cent and is currently trading at $0.44 per share as of 10:07 am ET.