MediPharm Labs Increases Profitability, Improves Efficiency

MediPharm Labs Increases Profitability, Improves Efficiency

There was more good news for MediPharm Labs (CAN:LABS / US:MEDIF)  and its shareholders on Tuesday. The Company reported its Q3 2019 results, delivering strong revenue growth over Q2 and improving bottom-line results.

  • Revenues increased by 38% over Q2 2019 (to CAD$43.4 million)
  • Gross profit increased by 30% over Q2 (to CAD$14.8 million
  • Net income increased by 32% over Q2 (to CAD$5.4 million)

Those were the headline numbers. However, management also wanted to draw attention to another factor in the market: lower prices.

Gross Profit was $14.8 million, a 30% increase over Q2 2019 and Gross Margin was 34% compared to 36% in Q2 2019 despite lower market-selling prices and increased GMP audit certification costs

What we are seeing on MediPharm’s bottom-line is that even with greater competition in extraction services impacting selling prices, increasing efficiency from scale is preserving margins. That bodes well for the future profitability of MediPharm.

Adding to the Company’s upside potential, MediPharm has applied for a NASDAQ listing. This would greatly improve liquidity and increase access for U.S. investors.

DISCLOSURE: The writer holds shares in MediPharm Labs.
Published at Tue, 12 Nov 2019 17:24:25 +0000

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