Numinus Wellness Inc. (TSX: NUMI) (OTCQX: NUMIF) increased its quarter revenue because of an increase in client appointments and strong performance at its psychedelic clinics.
This Monday, the company reported its financial results for the third quarter ended May 31 this year and reported a sequential revenue growth of 12.6 per cent to $6.0 million from the previous quarter.
When compared to the same period last year, the company’s earnings saw a massive increase of 713.3 per cent.
In terms of gross margin, there was a decrease of 480 basis points in the third quarter of 2023, bringing it down to 34.5 per cent from 39.3 per cent in the second quarter. This decrease was due to the company hiring more full-time workers instead of part-time contractors, and the performance of certain clinic locations.
However, when compared to the third quarter of 2022, the gross margin actually increased by 1010 basis points, from 24.4 per cent to 34.5 per cent. This improvement was mainly due to more client appointments and better use of the clinics.
The gross profit for the third quarter of 2023 was $2.1 million, which was the same as the previous quarter, but a significant increase from the gross profit of $0.2 million in the third quarter of 2022.
Numinus stock went up Monday by 2 per cent to $0.25 on the Toronto Stock Exchange.
Table via Numinus Wellness.
“We’re on the verge of a pivotal turning point for the psychedelics sector – with MDMA-assisted therapy on a path to FDA approval, long-form psychedelic-assisted therapy receiving an insurance pay code, and cultural awareness and support for these treatments building,” said Numinus CEO Payton Nyquvest.
“Within this, Numinus is focusing on building scale and sector partnerships to deliver best-in-class clinical infrastructure and practitioner training programs to support greater patient access to these important therapies,” he added.
Read more: Numinus Wellness YoY revenue increased five times to $5.4M
Read more: Numinus partners with HealingMaps to promote its clinics and identify expansion targets
More revenue thanks to client appointments
During the third quarter, Numinus implemented several strategies to reduce its cash expenses and refocus its operations on activities that generate revenue. These strategies included renegotiating contracts with vendors, reducing staff in departments that don’t generate revenue, and postponing non-urgent projects.
The operating expenses for this quarter totalled $9.2 million, which included $600,000 of expenses related to staff reductions.
Numinus Wellness Clinic Network generated $5.0 million of revenue during the third quarter, a 5.5 per cent increase from the second quarter, and a 584.2 per cent increase compared to the same period last year. This was due to an increase in client appointments, with more than 21,520 client appointments completed during the quarter.
This is an 11.2 per cent increase in clinic appointments compared to the second quarter. Numinus also launched its new Numinus Network wellness clinic licensing platform, which allows independent practitioners to own and operate a Numinus-branded full-service clinic. This model is integral to the efficient scaling of the business.
Numinus Clinical Research generated revenues of $1.0 million during the third quarter, a 66.7 per cent increase compared to the previous quarter. These revenues were generated through the management of third-party clinical trials at CCR’s three clinical research sites.
During the third quarter, CCR managed 18 clinical trials, which included 318 clinical trial patient appointments. Numinus also entered into a partnership with the Association for Psychedelic Studies to provide psychedelic experiential opportunities for practitioners training to offer MDMA-assisted therapy, as part of a clinical study.
The company says it took meaningful steps during the quarter such as launching the Numinus Network licensing program, and focusing capital and people resources towards more revenue-producing lines. It also expanded insurance coverage of psychedelic-assisted therapies.
“Collectively, we believe these actions will improve the productivity of our clinics and training offerings, drive higher long-term margins, and extend our cash runway. We expect the true impact of these changes will begin to be demonstrated in the next few months,” Nyquest said.
Last month, Numinus signed an agreement with the educational platform Healing Maps to promote its clinics and identify new targets for expansion.
Natalia@mugglehead.com
