Numinus Wellness Inc. (TSX-V:NUMI, OTC:LKYSF) posted second-quarter fiscal year 2022 financial results that saw its revenue jump 240% year-over-year, driven primarily by its robust acquisitions in the last 12 months.
For the three-month period ended February 28, 2022, the Vancouver, British Columbia-based mental healthcare company advancing innovative treatments and psychedelic-assisted therapies reported revenue of $0.8 million.
Numinus attributed the revenue jump to the acquisitions of Mindspace and the Neurology Centre of Toronto. Sequentially, the revenue was in line with the previous quarter, representing periods of increased client appointments, alongside the seasonally slower period over the December holidays, said the company.
The company’s gross margin expanded to 29.1% during 2Q 2022, compared to 6.5% in 1Q 2022 and negative 25.7% in the 2Q 2021. Numinus noted that the “marked improvement” in gross margin is due mostly to a greater proportion of higher margin services being booked across Numinus' wellness clinics.
Numinus saw a gross profit of $228,759 in the 2Q, up 349% from the gross loss of $59,724 in 2Q 2021.
For fiscal 2Q 2022, the company reported a loss of $7.8 million, compared to a loss of $4.2 million in 2Q 2021.
The company had a strong cash balance of $48.3 million as of February 28, 2022.
"Numinus' fiscal second quarter demonstrated the strength of our growing service offering and the efficiency of our operating platform, with gross margin improving to 29.1% during Q2 2022, compared to 6.5% in the previous quarter,” Numinus Wellness founder CEO Payton Nyquvest said in a statement.
“Most of this improvement is due to the successful integration of the Neurology Centre of Toronto – an acquisition we completed just the quarter before, and the expansion of ketamine-assisted therapy services across our clinic network," he added.
Meanwhile, Nyquvest noted that the firm is “looking forward” to its recently announced proposed acquisition of Novamind.
“It will be transformational for Numinus as we establish a strong US presence with eight revenue producing clinics located in Utah and Arizona. It also provides two additional clinical research sites and a strong pipeline of clinical research business, which will significantly expand Numinus' contract research capabilities,” added Nyquvest. “We are very excited about the opportunities ahead as we firmly establish the Numinus brand and our comprehensive combined mental health and wellness offering in the US.”
During the quarter, clients made 5,320 appointments through Numinus clinics, which included one-on-one and group therapy sessions, neurology-related appointments and ketamine-assisted psychotherapy.
In the meantime, revenue during the first half of fiscal 2022 grew 242% year-over-year to $1.6 million.
In addition, gross margin during the first half of 2022 was 17.8%, compared to negative 21.2% in the same period last year.
Significantly, gross profit during the first half of 2022 substantially improved to $279,724, compared to a gross loss of $97,859 in the first half of 2021.
Numinus has five wellness clinics offering services to clients — one each in Vancouver and Toronto, and three in Montreal — that have 21 treatment rooms. In addition, the company has two dedicated research clinics, where psychedelic studies are being conducted in Vancouver and Montreal.
The company has announced that it will be opening a new flagship wellness clinic location in Vancouver during late summer or early fall this year.
“Collectively, our combined business will become a leading integrated mental healthcare company providing psychedelic-assisted therapies across North America, generating more revenue than any of our peers," said Nyquvest.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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