- Medical cannabis company MediPharm Labs (TSX:LABS) reported substantial progress on its path to profitability, highlighted by an $8 million improvement in adjusted EBITDA compared to 2023.
- Full year 2024 net revenue Increased by $9 million or 27 per cent to $42 million, up from $33 million in the prior year
- Q4 2024 revenue increased by $2.9 million or 32 per cent to $12 million compared to Q4 2023
- MediPharm Labs stock (TSX:LABS) opened trading at $0.09
MediPharm Labs (TSX:LABS) announced its financial results for the full year and three months ended December 31, 2024. The medical cannabis company reported progress on its path to profitability, highlighted by an $8 million improvement in adjusted EBITDA compared to 2023.
Full year 2024 highlights
- Net revenue: Increased by $9 million or 27 per cent to $42 million, up from $33 million in the prior year.
- Gross profit: Achieved $12.8 million or 31 per cent, a significant improvement over 2023’s $5.8 million or 18 per cent.
- Adjusted EBITDA: Reported a loss of $1.9 million, an improvement of $8.3 million or 81 per cent versus 2023, driven by margin expansion initiatives and cost reductions.
- Operational efficiency: Transitioned key operations from the Hope facility to the Barrie facility, resulting in over $1 million in annualized savings. The sale of the Hope facility for $4.5 million is expected to close in the second quarter of 2025, subject to customary closing conditions and necessary approvals.
- Debt repayment: Repaid $2 million of convertible debt, leaving the company materially debt-free.
Q4 2024 highlights
- Revenue: Increased by $2.9 million or 32 per cent to $12 million compared to Q4 2023.
- Gross profit: Improved to $3.6 million or 30 per cent, up from $2.2 million or 24 per cent in Q4 2023.
- Adjusted EBITDA: Loss of $0.1 million, an improvement of $1.5 million or 94 per cent versus Q4 2023.
- International revenue: Represented 54 per cent of total revenue, up from 27 per cent in Q4 2023.
- Balance sheet: Strong with $11.7 million in cash and materially debt-free.
International medical cannabis revenue growth
- 2024 revenue: Increased by 83 per cent to $17.7 million from $9.7 million in 2023, driven by further market penetration, new product launches in Germany and Australia, and new global and domestic partnerships.
- Q4 revenue: International revenue accounted for 54 per cent of total revenue, increasing from $2.4 million in Q4 2023 to $6.5 million in Q4 2024.
- Regulatory achievements: Achieved Pharmaceutical GMP certification with the Brazilian Health Regulatory Agency (ANVISA), becoming one of the few North American companies to receive multiple sanitary authorizations for cannabis products while holding an ANVISA GMP license.
Leadership insights
“International represented over 50 per cent of our Q4 revenues, capitalizing on our EU-GMP licensed facilities,” MediPharm Labs’ CEO, David Pidduck said in a news release. “We are well positioned for long-term international success and continue to onboard new customers and distribution partners to meet the growing global demand for premium cannabinoid products.”
“2024 was a transformational year for MediPharm Labs with $42 million in net revenue representing a 27 per cent increase versus 2023,” CFO Greg Hunter added. “Gross margins expanded significantly to 31 per cent versus 18 per cent in 2023 and adjusted EBITDA loss improved from $10 million in 2023 to $1.9 million in 2024. We are very close to being adjusted EBITDA positive with Q4 2024 adjusted EBITDA loss of $0.1 million.”
About MediPharm Labs
MediPharm develops and manufactures pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients and advanced derivative products.
MediPharm Labs stock (TSX:LABS) opened trading 5 per cent lower at $0.09.
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(Top image: MediPharm Labs.)