Valeo Pharma Inc. (TSX:VPH, OTCQB:VPHIF) has reported record revenues of $54 million for fiscal 2023, representing a 94% year-over-year rise driven by increased demand for its prescription products.
The Canadian pharmaceutical company also posted a record adjusted gross profit of $16.9 million for the year, up 80% from $9.4 million in 2022.
Driving the company’s strong performance was a jump in total Enerzair and Atectura prescriptions, which rose 179% over the previous year to exceed 67,000.
For the fourth quarter, revenue rose 4% from the year-ago quarter to $13.1 million but its adjusted gross profit decreased 29% to $2.6 million.
The company noted that its growth momentum was impacted during the quarter by adjustments to its carrying provisions for rebates and sales returns.
“Although our fourth quarter of 2023 was more challenging in terms of earnings before interest, taxes, depreciation and amortization (EBITDA) and cash management, our team remains fully focused on the execution of our currently ongoing and upcoming business initiatives,” Valeo CFO Pascal Tougas commented.
“We expect continued revenue growth and sequential improvements in our results starting in the first quarter of the current year and continuing throughout 2024 as we accelerate our path towards profitability.''
CEO Steve Saviuk said the company’s three pillars of growth, Enerzair, Atectura and Redesca, all experienced growing revenues and market share gains during 2023 and are positioned for further growth in 2024.
“We look forward to seeing the impact of our recently implemented cost reduction initiatives and organizational realignment measures materializing, starting in the first quarter of 2024, and having full impact by the third quarter of 2024,” Saviuk said.