Analysts at Water Tower Research noted that fourth-quarter 2022 results from Numinus Wellness Inc. (TSX:NUMI, OTC:LKYSF) highlighted the impact of its Novamind acquisition.
For the fiscal fourth quarter ended August 31, 2022, Numinus delivered a 464% year-on-year increase in revenue to C$4.2 million and gross profit of C$1.3 million, up from a year-ago loss of C$89,700 and a 628% increase from the preceding fiscal quarter’s C$181.000.
The company's gross margin expanded to 31.5% in the fourth quarter, versus 24.4% in the preceding quarter and a 12.7% average over the preceding three fiscal quarters. Run-rate revenues are C$16.7 million with gross profit at around C$5.2 million.
READ: Numinus Wellness posts 643% jump in 4Q revenue following Novamind acquisition
The Water Tower analysts pointed out that Numinus’ wellness clinics on both sides of the border contributed around 88% of the company’s total revenues or around C$3.7 million at an average gross margin of 27%. The US clinics generated 82.5% of these revenues and revenues from the Canadian clinics grew by 61% year-on-year, driven by network expansion and increased patient traffic.
They noted that more than 17,000 appointments were completed during the fourth quarter versus 5,600 in quarter three, mostly due to the Novamind acquisition at the beginning of the quarter. About 13.5% of the appointments were ketamine-related and another 9% were for TMS therapy, both value-added series that helped drive up margin, and about 12.5% of the total completed appointments reflected new clients.
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