Irwin Naturals Inc. (CSE:IWIN) has said it achieved record results for the financial year ended December 31, 2021, with the growth of its core business fueling the roll-up of the company’s psychedelic mental health clinics.
Operating revenue reached a record $100.34 million last year, a rise of 12.3% on 2020, while fourth-quarter revenue climbed 5.9% to $25.94 million, the company noted.
Adjusted EBITDA rose by 32.2% to $11.99 million in the full year and by 7% to $2.76 million in the final quarter, it added.
"In our 28th consecutive year of profitable operations, the core business continues (to) grow," Klee Irwin, president and CEO of Irwin Naturals said in a statement. "These record-breaking top and bottom-line numbers are fueling our accretive rollup of psychedelic mental health clinics featuring psychedelic treatment with ketamine. It is noteworthy that our roll-up is occurring without sacrificing profitability."
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The company said net cash generated from operating activities jumped 33.3% to $10.95 million in the year, driven primarily by higher operating revenue from sales, temporary favorability to working capital driven by the timing of payments to the company's primary product manufacturer and non-cash share capital issuance related to the going public event.
The increase was offset partially by investments made into the new Irwin Naturals Emergence psychedelic mental health clinic business, predominantly related to staffing, legal and marketing expenses, the company noted.
Irwin Naturals said it intends to leverage its household name brand status to drive an “aggressive" roll-up of mental health clinics. The company is focused on ketamine clinics, as this is currently the only psychedelic substance approved by the US Food and Drug Administration (FDA).
It has begun efforts to license its brand to distributors throughout the US.
“This is a once in a lifetime opportunity we believe will significantly accelerate revenues and profitability,” commented the company's CEO. “We are proud of our profitable history and excited about our future and look forward to informing the markets as we progress with our expansion."
He pointed out that ketamine therapy can be of help in treating the many North Americans who suffer from mental health disorders.
“We need a lot more psychedelic mental health clinics, and we need them fast. We barely have 600 in the country today,” Irwin said. “These new therapies are the only ones we know of that have such an extreme level of effectiveness. We intend to roll up a large amount of these clinics into our public company in the months and years immediately ahead of us. Irwin Naturals is one of the world's first mega-brand name to capitalize on this opportunity."
In a separate statement, the company said that its CEO Klee Irwin and CFO Philippe Faraut will be hosting a conference call at 12.00pm EST today, May 3, 2022, to discuss the results, as well as the company's strategy and execution going forward.
Conference Call Participant Details - Canada:1-647-558-0588; North America:1-646-558-8656; Zoom Meeting URL: https://us02web.zoom.us/j/83004253799; Zoom Meeting ID: 830 0425 3799
Contact the author at jon.hopkins@proactiveinvestors.com