Despite losses and revenue decrease, multinational cannabis operator PharmaCielo Ltd. (TSXV: PCLO) (OTCQX: PCLOF) says it’s ready to make a comeback this year.
On Friday, the Toronto-headquartered company with primary operations in Colombia announced the release of its 2021 financial statements ended Dec. 31 and saw a decrease in year-over-year revenue of 27 per cent to $1.9 million from $2.7 million in the previous year.
The company reported around 40 per cent decrease in a yearly net loss to $26.6 million from $43.8 million in 2020. Gross loss decreased by 35 per cent this year to $4.3 million compared to $6.6 million in the previous year.
Yearly operations costs went down by around 10 per cent to $20.1 million in 2021 from $22.6 million in the previous year.
Total cash equivalents by the end of year totalled $5.3 million from $8.9 million in the last quarter.
Company stock went up by 7 per cent on Friday to $0.61 on the Canadian Ventures Exchange.
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In the fourth quarter, the company reported a revenue of $339,000 from $485,000 in the third quarter. Net loss decreased in the fourth quarter to $4.1 million from $8.8 million in Q3.
The company saw a negative Sequential Adjusted EBITDA of $4.6 million this quarter and a net loss of $4.1 million.
Read more: PharmaCielo gets high-THC export quota from Colombian government
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PharmaCielo’s CEO Bill Petron said that since he assumed the CEO role in the third quarter, the company has made significant progress streamlining its operating structure, investing in its sales organization and refocusing the team on THC-related opportunities.
“These efforts are paying off, with a deeper, higher quality sales pipeline and a recent agreement in Germany to access a distribution network that reaches every pharmacy in Germany, a market expected to be worth €7.7 billion by 2028,” Petron said.
According to Petron, dried flower accounts for up to 50 per cent market share in most mature cannabis markets globally. He said that the recent update on exports by the Colombian government is a “watershed moment” for the industry.
“PharmaCielo is particularly well-positioned to capitalize on this shift, with scalable cultivation and processing capacity in place, a structural cost advantage, and the sophistication to ensure consistently high-quality products,” he explained.
“I expect 2022 to be a pivotal year for the company as we build what I fully expect will become one of the most important B2B companies in the global cannabis supply chain, backed by a strengthened balance sheet and clear path to revenue growth.”
At the beginning of April, the Colombian government signed resolution 539 which which outlines the regulations and the technical guidelines for commercializing dried flower and medicinal-grade cannabis extracts.
After the regulations change, many multinational operators are starting to export their Colombian-grown cannabis into other markets such as Florida-headquartered Clever Leaves Holdings Inc. (NASDAQ: CLVR) (NASDAQ:CLVRW) and Kelowna-based Allied Corp. (OTCQB:ALID).
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