Ayurcann Holdings Corp (CSE:AYUR) reported its first quarterly results as a public entity highlighted by growing revenue and strong margins.
The cannabis firm’s net revenue came in at C$2.6 million over the three-month period ended March 31, 2021, the group’s fiscal 3Q, compared to $1.6 million in the previous to end December 2020.
Gross margins were $1.84 million, or 70%, compared to $302,000 in 2Q 2021 and adjusted EBITDA grew to around $1.1 million.
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Toronto-based Ayurcann is building out its Pickering facility as part of the second phase of an expansion program, increasing production capabilities to help brand the company as a one-stop shop for Canadian licensed producers seeking a branded product solution.
The firm said it maintains monthly inventory of approximately 300 kilograms of crude THC and CBD distillate and isolate for use in Cannabis 2.0 and 3.0 products, which it says is one of the largest available inventories in Canada.
Igal Sudman, Ayurcann’s CEO, called 3Q 2021 a “milestone” quarter for the company, which listed on the Canadian Securities Exchange through a reverse takeover in March.
“We wanted to show that it can be done, a Cannabis company in Canada can operate as a profitable entity, keeping an eye on the bottom line and being responsible,” Sudman said in a statement.
“We successfully oversubscribed and closed a financing which will now enable us to complete our phase 2 buildout, further increasing our ability to serve our clients and grow our revenues.”
Sudman added that the company is “thrilled” to see revenues growing at a steady pace, month-over-month, while maintaining incredibly strong margins and running a profitable business.
“As far as we know, we are one of the very few in our peer group showing growing revenues and a positive operating income with a consistent path of profitability. We can confidently say we are profitable now and fully expect to show continued profits going forward while building on our momentum.”
Ayurcann hopes to increase bulk production up to 300,000 kg per year and have the ability to co-pack up to 2.5 million production products into the medicinal and recreational markets.
“We are confident that we will continue securing additional, lucrative supply and manufacturing agreements with top-tier customers across the country, thereby helping grow our top line revenues while maintain healthy margins,” the CEO said.
Ayurcann provides custom processes and pharmaceutical-grade products for the adult-use and the medical cannabis industry in Canada.
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