Ayurcann Holdings Corp reported a record 1,149% increase in its revenue for the fiscal year ending on June 30, 2021, closing at $7.6 million, as compared to $611,829 in fiscal year 2020.
The massive increase was driven by multiple supply agreements, a ramp-up in production capacity at its manufacturing facility in Pickering, Ontario, and its entry into five new markets including Ontario, Manitoba, Alberta, and Saskatchewan.
The cannabis extraction company said that it also saw substantial growth in operating income of $2,159,309 — an increase of 440% over the fiscal year 2020 — representing gross margins of 60%.
READ: Ayurcann enters into patient referral agreement for medical cannabis with The Herb Clinic
"We are thrilled to see our revenues growing consistently. Our margins are robust, and we are increasingly profitable,” said Igal Sudman, CEO of Ayucann. “We are proud to be one of the very few in our peer group showing growing revenues and a positive operating income with a consistent path of profitability.”
The Ontario-based company said that it sold THC and CBD distillate containing over 1 billion milligrams of cannabinoids in the Canadian market.
The other highlights from the fiscal year 2021 included signing multiple international brands to manufacture and distribution agreements including Innocan Pharma from Israel. The company also signed a supply agreement with NDC in Saskatchewan for shipping its Fuego vapes and Vida tinctures into retail.
In 2021, the company also launched the Ayurcann Marketplace for providing access to medical cannabis in Canada.
Ayurcann's net loss for the year narrowed to $405,000 from the $605,000 it posted a year prior.
Completion of Phase II
In a separate statement, Ayurcann announced that it completed the Phase II expansion of its Pickering, Ontario facility, providing increased production and manufacturing capabilities.
The new facility increases the processing capacity to up to 300,000 kilograms per year and its manufacturing capacity up to 3 million product fills.
"As an industry-leading processor and manufacturer, we have been working alongside our partners to support them when it comes to quality, reliability, and value," stated Sudman.
With the Phase II build-out completed, Sudman added: “We are confident that we will continue securing additional, supply and manufacturing agreements with top-tier customers across the country, thereby helping grow our top-line revenues while maintaining healthy margins."
The company is focused on national and international partnership opportunities in the cannabis industry. Ayurcann has distinguished itself as an established partner, who has the capacity to formulate, test, and manufacture products at the highest standards for current and future requirements.
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