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Thursday, Oct 6, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

Khiron drops revenue by 4% to $4.5M in Q2

Khiron says it has developed a proven clinic business model with highly profitable medical cannabis sales in Colombia, the United Kingdom, Peru, Brazil and Germany.

Khiron to acquire EU-GMP-certified German pharmaceuticals manufacturer
Photo via Khiron

Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC) is continuing with its momentum in the medical cannabis markets across the world.

On Monday, the cannabis producer released its financial report for the quarter ended March June 30 and reported a net loss of $2.1 million for the second quarter, which is a decrease of 60 per cent from $5.4 million in the last quarter.

It reported total revenue of $4.5 million, which is a decrease of 4 per cent from the previous quarter which was attributed to a reduction in medical cannabis sales in Germany while the company was closing the acquisition of Pharmadrug GmbH which is a EU-GMP & GDP certified cannabis manufacturer and distributor.

The company reported a total medical cannabis gross profit of around $2 million which stayed flat from the last quarter. General and administrative costs this quarter reached $3.7 million, from $5.6 million in the last quarter.

Cash used for operating activities reached a low of $4.8 million from $10.4 million last year but saw an increase of around 60 per cent from the last quarter.

The company also reported a gross margin in the medical cannabis segment of 76 per cent which was driven by its medical cannabis model in Latin America and Europe.

Khiron says it has developed a proven clinic business model with highly profitable medical cannabis sales in Colombia, the United Kingdom, Peru, Brazil and Germany.

It recently acquired the German company Pharmadrug which will allow the company to access more than 18,000 pharmacies in Germany and generate proprietary data on the evolving market.

Company stock stayed flat on Monday at $0.13 on the Canadian Ventures Exchange.

Read more: Khiron opens its first Zerenia Clinic in Brazil

Read more: Khiron reaches new medical revenue records in Q1

“The results of the first half of the year and Q2 2022 demonstrate that we are a disciplined company building sustainable growth, reducing costs and optimizing cashflow, able to reach profitability in the near term,” CEO Alvaro Torres said in a statement.

“During Q2 2022, we made key decisions to continue to build our global platform with the strategic acquisition of Pharmadrug in Germany, the opening of our new flagship clinic in Rio de Janeiro in Brazil, as well as our new mid-sized clinic and pharmacy in Bogota in one of the city’s busiest shopping centres,” Torres said.

The company expects that with these steps coupled with its growing patient loyalty will continue to drive Khiron’s leadership in Latin America and Europe.

“This is possible because of an incredible team across many countries and continents who are committed to improving the quality of life of patients, and who continue to work very diligently to ensure we become indispensable to our patients in every market,” he added.

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