Numinus Wellness Inc posted fiscal third-quarter results that saw its revenue jump 31.8% year-over-year, helped immeasurably by the company’s new acquisitions Mindspace and the Neurology Centre of Toronto.
For the period ended May 31, 2022, the Vancouver-based leader in psychedelics-focused mental healthcare, reported revenue of $0.74 million.
The company revealed that its flagship Numinus Wellness Clinic Network contributed $731,064 to quarterly revenue, an 59.5% increase from $458,316 during the same quarter a year earlier.
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The firm noted that revenue declined by 5.7% sequentially from the previous quarter, due to shifting strategic priorities at Numinus Bioscience – where analytical testing services for third-party corporate clients have ceased due to changing sector dynamics.
“The elimination of this revenue stream was partially offset by 7.5% revenue growth achieved through Numinus' clinic network operations,” noted the company.
Meanwhile, Numinus reported gross margin expanded to 24.4% during the quarter, compared to -2.8% in Q3 2021. The company chalked up the improvement in gross margin mostly to “the completion of acquisitions between periods, and the offering of higher-margin services.”
Additionally, the firm’s gross profit totaled $180,845 in the quarter, a significant improvement on the gross loss of $15,497 in the corresponding period a year earlier.
Numinus said it logged a loss of $7 million for fiscal 3Q 2022, compared to a loss of $4.8 million in the same quarter in 2021, largely due to “corporate development and legal expenses related to the acquisition of Novamind Inc.”
The company had a cash balance of $41.8 million as of May 31, 2022.
"Our fiscal 3Q was highlighted by the announcement of our acquisition of Novamind, and the activities leading up to the completion of that strategic transaction on June 10, 2022. Now, with 13 wellness clinics across North America, four clinical research sites and a dedicated psychedelics research facility, Numinus is firmly positioned as a leading mental health care company providing psychedelic-assisted therapies,” Numinus founder CEO Payton Nyquvest said in a statement.
“We look forward to sharing our combined performance with you when we announce our fiscal 4Q results – which will be the first quarter demonstrating the power of our larger, cross-border platform," he added.
The Numinus boss noted that if one were to take Novamind into consideration, Numinus is “one of the highest revenue-producing mental health care companies providing psychedelic and ketamine-assisted therapies,” with more than $12 million of combined proforma annual revenues (based on trailing four quarters).
“We continue to be excited about the momentum building across our business and our outlook ahead. With significantly strengthened revenue streams, a growing number of client services, and positive regulatory reforms underway, our focus is squarely on reaching profitability as quickly as possible,” said Nyquvest. “Our strategy to accelerate Numinus' path to profitability also includes expanding higher-margin services, increasing business development activities, and proactively managing our operating costs. Our goal is to achieve operational profitability within two years and corporate positive cash-flow within three years."
Significantly, Numinus saw revenue during the first nine months of fiscal 2022 grow 126.5% year-over-year to $2.3 million, due primarily to the continued post-acquisition growth of Mindspace and the acquisition of the Neurology Centre of Toronto.
During the quarter, clients received 5,634 appointments through Numinus Clinics, up 5.9% compared to clinic appointments in the fiscal 2Q of 2022. The appointments included one-on-one and group therapy sessions, neurology-related appointments, paid group programs, and Ketamine-assisted psychotherapy.
On May 16, 2022, Numinus won Health Canada Special Access Programme (SAP) approval to provide psilocybin-assisted therapy to a patient with treatment-resistant depression. This was the firm’s first psilocybin-assisted therapy treatment outside of clinical trials.
Investors can read more about the company’s lab operations here.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive