Aleafia Health Inc. (OTCQX:ALEAF) (TSX:AH) revenue in Q1 2023 was $16.5 million, a 41% increase compared to $11.65 million in Q1 2022.
Q1 2023 Financial Highlights
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Total gross profit 22%, compared to 43% in Q1 2022.
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Adjusted EBITDA was a loss of $938,000, compared to loss of $3.43 million in Q1 2022.
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Net profit was a loss of $4.47 million, an unfavorable decrease of 185% compared to net profit of $5.23 million in Q1 2022.
Branded cannabis net revenue, quarter over quarter, increased 25%: Aleafia Health continued its upward sales growth trend, with branded cannabis net revenue increasing 24% to a record $10.0 million from $8.0 million quarter over quarter. In the key branded adult-use market, the company's net revenue increased 107% to $6.7 million from $3.2 million in the same period last year.
"Our pivot to a branded cannabis strategy is the success story driving the three pillars of company revenue: adult-use branded cannabis, a 'sticky' recurring medical cannabis revenue stream and growing higher margin international sales," stated Aleafia Health CEO Tricia Symmes. "As a result of revenue increases, the company has achieved the 2nd highest growth rate amongst top 12 Canadian LPs in retail sell through over the prior quarter while achieving a #12 ranking for market share in our core markets for Q2 CY2022."
"We are striving to achieve breakeven adjusted EBITDA profitability by the end of FY2023," Sale said. "Firstly, we are increasing revenue by capturing market share. SKU optimization has furthered revenue growth, which aligns the portfolio with the highest selling product formats with strongest margins, coupled with moderate and strategic price increases. Second, we are relentlessly focused on cost rationalization. In addition to difficult headcount reductions and other initiatives, the company has engaged in vendor consolidation to reduce complexity across sites while negotiating trusted vendor price improvements due to economies of scale. With all of these efforts combined, the company has extracted $20 million in annualized SG&A savings over the last four quarters, and break-even adjusted EBITDA profitability is within our grasp during FY2023, a milestone for the company."
Photo: Benzinga; Sources: courtesy of Kindel Media via Pexels
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