Adastra Holdings (CSE:XTRX) Ltd has announced record revenue and gross profit for the three months ended March 31, 2022, which the company says demonstrated “significant demand” for its cannabis concentrate brands and products.
The British Columbia-based leader in innovative ethnobotanical and cannabis science products said it achieved revenue of $2.3 million in the first quarter, a 288% increase from a year earlier, by bringing new brands to market, adding to its co-manufacturing portfolio and increasing its production capacity.
"The year is off to a record-breaking start with strong momentum for the year ahead. We have achieved record revenues and gross profit, while maintaining a strong capital position," the company's CEO Michael Forbes said in a statement.
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"Our focus remains on implementing production rollout, generating multiple revenue streams and creating market expansion strategies. We have made proactive advances in all of these areas, which has ultimately resulted in a strong foundation for further continued growth of our business,” he added.
The company achieved gross profit of $827,713 in the first quarter compared to $105,411 a year ago, representing a jump of 685%, while operating expenses in the three months increased to $1,695,682 from $467,771 in 1Q 2021.
During the quarter, Adastra launched the Endgame Extracts brand, with four initial SKUs, at the British Columbia Liquor Distribution Branch to augment its revenue stream. The products were sold out within 48 hours, the company noted.
It also commissioned automated pre-roll equipment for infused pre-roll production and submitted applications for its Medical Sales Licence and Controlled Substances Dealer's Licence in line with its market expansion strategy.
"We look forward to building on our reputation as a leader in the cannabis and patient-focused psychedelics space in order to deliver on our commitment to create long-term value for our customers, partners and shareholders," Forbes said.
Founded in 2018 and formerly known as Phyto Extractions Inc, Adastra is a leading manufacturer and supplier of innovative ethnobotanical and cannabis science products designed for the adult-use and medical markets and forward-looking therapeutic applications.
Contact the author at jon.hopkins@proactiveinvestors.com