PharmaCielo Ltd., the Canadian parent company of Colombia’s cannabis cultivator and producer, PharmaCielo Colombia Holdings S.A.S., announced its financial results for the second quarter ended June 30, 2024, on Friday. The company reported a significant 390% increase in revenue year-over-year, reaching CA$783,680 ($570,891), driven by increased sales of cannabis derivative products. This represents a substantial leap from the CA$159,539 in revenue generated during the same period in 2023.
While revenue soared, PharmaCielo’s net loss for the quarter stood at CA$2.58 million (or CA$0.015 per share), a slight increase from the CA$2.42 million loss in the previous quarter. However, this represents an improvement from the CA$3.6 million loss reported in Q2 2023. The company’s adjusted EBITDA was a negative CA$592,000, showcasing a positive improvement compared to the CA$2.1 million negative figure in the same quarter of 2023. Gross profit also saw a significant improvement, reaching CA$274,745 compared to a loss of CA$609,254 in Q2 2023.
PharmaCielo’s Cost of Goods Sold (COGS) for cannabis products amounted to CA$407,327, while the COGS for telemedicine services reached CA$10,801. The company also reported a decrease in operating expenses to CA$1.9 million, down from CA$2.4 million in Q2 2023.
In a press release, PharmaCielo’s chairman and CEO, Marc Lustig, highlighted the significant opportunities presented by the global cannabis market, particularly with large consumer and pharmaceutical companies entering the industry. He emphasized that PharmaCielo is uniquely positioned to serve these organizations with its pharma-grade extracts and dried flower, offering unmatched consistency and a structural cost advantage. Lustig further stated, “While the market is still emerging, our efforts to build a robust sales pipeline focused on our high-margin product portfolio are progressing well.”
Lustig also emphasized the company’s success in reducing total SG&A expenses by over 38% year-to-date compared to the same period last year. He added, “Our Adjusted EBITDA has been steadily improving, now down to a $0.6 million loss in 2024 Q2 versus a loss of $2.1 million last year. With no significant capital expenditures required to reach full commercial scale, we are better positioned than ever to achieve increased profitability and cash flow as our sales grow.”
In a separate announcement, PharmaCielo revealed the issuance of 5,979,496 common shares as part of a debt settlement strategy. This initiative underscores the company’s commitment to optimizing its capital structure without significant cash outlays.
As of this writing around 10:30 AM ET Friday, PCLOF shares were trading 4.78% lower at $0.0857 per share.
