Cannabis net revenue decreased over the same period by 55% to $6.24 million, whereas net medical cannabis revenue and net adult-use cannabis revenue spiked 95% and 143%, respectively.
Net bulk wholesale cannabis revenue amounted to roughly $1.9 million, representing an 84% decrease year-over-year.
Geoffrey Benic, CEO of the Toronto-based company, said the exponential increase in the cannabis product portfolio resulted in "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."
Here's a breakdown of what the first quarter 2021 earnings report showed:
- Adjusted gross profit before fair value adjustments on net cannabis revenue shrunk to $3.7 million from $11.7 million in the corresponding quarter of 2020.
- Adjusted gross margin, before fair value adjustments, on net cannabis revenue was 59% versus 85% in the prior year.
- Selling, general and administrative expenses increased to $8.35 million, from $6.1 million in the same period of 2020.
- Gross profit dropped by 60% year-over-year to $2.4 million.
- Adjusted EBITDA came in negative at $3.03 million versus a gain of roughly $6.8 million in the first quarter of 2021.
- Net loss spiked 83% year over year to $11.25 million.
Aleafia recently secured some $22.7 million in financing through a previously announced deal offering of some 27.39 million of its units at 83 cents per unit.
"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," Benic disclosed.