Toronto-headquartered Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC) continues to increase sales while expanding its medical cannabis clinic presence across Latin America and Europe.
On Monday, the international cannabis company released its financial results for its third quarter ended Sept. 30., reporting revenue of $3.5 million, a 26 per cent rise from $2.8 million last quarter.
Revenue growth was driven by medical cannabis clinic operations in Colombia and Germany, Khiron says.
The company’s gross profit stayed flat at $1.8 million. It reported a medical cannabis revenue of $1.2 million, accounting for 34 per cent of total revenue. Europe sales accounted for 31 per cent of medical revenue.
Comprehensive loss totalled $3.3 million, a 39-per-cent decrease from $5.4 million in the second quarter.
Khiron reported earnings before, interest, taxes, depreciation and amortization (EBITDA) of negative $3.7 million, an improvement of around 5 per cent from negative $3.9 million.
However, operational expenses were $15.2 million, a 32-per-cent decrease from $10.3 million.
Cash and cash equivalents were $15.4 million, up 66-per-cent from $9.3 million.
“In Q3, we achieved strong results and broke revenue and profitability milestones, surpassing our first million dollars in medical cannabis revenues and gross profits,” CEO Alvaro Torres said in a statement.
“In the first nine months of 2021, we have already exceeded 2020 medical cannabis sales by more than 600 per cent while maintaining medical cannabis margins of over 89 per cent.”
Company stock fell over 4 per cent Monday to $0.23 on the TSX Venture Exchange.
Khiron says it should have sufficient funds to continue operations for at least the next twelve months, satisfy all commitments and repay its liabilities from normal business operations. However, the company mentions that it will prudently manage its cash as there’s some uncertainty related to incoming cash flows.
Khiron owns 15 medical cannabis clinics in Latin America and Europe, the first opening in Colombia a year ago. The company saw an increased gross margin for clinic services of 25 per cent, compared to 15 per cent in the previous quarter.
In November, the firm opened its first medical cannabis clinic in Europe, located in the Chelsea district of London, U.K.
Khiron first entered the U.K. in 2019 by becoming a founding member and the Latin American supplier for Project Twenty21, which offers low prices for patients having difficulty accessing the market.