Cannabis company Rubicon Organics Inc. (TSXV:ROMJ) (OTCQX:ROMJF) reported on Monday its financial results for the second quarter that ended June 30, 2022.
Q2 2022 Financial Highlights
- Generated CA$8.8 million ($6.88 million) in net revenue, a 92% increase over Q2 2021, and a CA$3.7 million sequential improvement.
- Gross profit totaled roughly CA$3.2 million, compared to a gross loss of CA$741,007 in the same quarter of last year.
- Loss from operations amounted to CA$943,962, compared to nearly CA$5 million loss in the prior year's quarter.
- Achieved positive adjusted EBITDA of CA$0.3 million in the three months to June 30, 2022.
- Ended the quarter with CA$6.81 million in cash and cash equivalents and CA$19.4 million in working capital.
Other Q2 Highlights
- 2.7% national market share of flower and pre-rolls
- 8.6% national market share of premium flower and pre-rolls
- #1 Premium flower and pre-roll brand in Canada with Simply Bare Organic
- #1 Topical brand in Canada with the licensed brand Wildflower topical sticks
- Extended existing Debenture for 18 months to December 31, 2024.
- Granted IMC-G.A.P. Certification by the Control Union, a milestone to export to Israel and EU-GMP facilities in Europe and Australia.
First Half FY 2022 Financial Highlights
- Net revenue totaled nearly CA$14 million, compared to CA$8.7 million in net revenue for the same period of fiscal 2021.
- Gross profit totaled roughly CA$5.67million, compared to a gross loss of $CA 667,370 in the same period of last year.
- Loss from operations amounted to CA$2.07 million, compared to CA$8.26 million loss in the prior year's period.
- Adjusted EBITDA came in negative at CA$1.2 million in the first six months of fiscal 2022, compared to approximately CA$6.8 million loss in the same period of fiscal 2021.
What's Next?
The company plans to implement its commercial strategies within the Canadian domestic market to maximize the gross profit for each unit produced from the Delta facility, which, coupled with delivering increased quality of flower and higher THC, is expected to drive more volume into its Simply Bare Organic and 1964 Supply Co brands.
In addition, it also intends to obtain key certifications and agreements to launch into Israel and Europe.
"We expect to see our products in international markets in either late 2022 or the first part of 2023," Jesse McConnell, the company's CEO, said. "I am also pleased to increase our guidance to achieve positive Adjusted EBITDA for FY 2022 and as well as operating cashflow positive in the second half of 2022."
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