CareRx Corporation (TSX:CRRX) has reported quarter-over-quarter revenue growth for the second quarter as the provider of pharmacy services to senior living in care communities increased the average number of beds it serviced.
For 2Q, it posted revenue of $94.5 million, up from $91.4 million in the first quarter.
This was, however, a decline from revenue of $96.9 million in the year-ago quarter which the company attributed to a change in the mix of branded and generic pharmaceuticals dispensed, which it noted did not impact on its profitability for 2Q.
The company also swung to a profit of $1.9 million for the quarter, compared to a net loss of $2.1 million in 1Q and a loss of $25.1 million in 2Q 2022.
The bottom-line improvement when compared to 1Q came from an increase in income tax recovery.
When compared to the year-ago quarter, the company said that the improvement was driven primarily by non-cash adjustments, including impairment losses related to goodwill and intangible assets and investments recorded during the second quarter of 2022 that did not recur in 2023.
"We are pleased to have returned to generating organic quarter-over-quarter revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth in the second quarter, which was in line with our expectations,” CareRx CEO Puneet Khanna said.
“While CareRx has been navigating the various challenges in the healthcare labour market over the last year, our focus on organic growth opportunities and margin accretive efficiencies is starting to take hold and these results are reflective of that focus.”
Khanna added that, with the growth in beds serviced during 2Q, the company has substantially offset the fiscal 2022 customer offboarding.
“CareRx will continue to focus on the execution of a comprehensive technology and operational process optimization program which is expected to result in cost savings and improved productivity,” the CEO said in a statement.
“Over the next 12 months, these efforts are expected to drive improved financial and operating performance, strengthen our competitive advantage, and better position CareRx in this high-growth industry.”
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