MediPharm Labs Report Profitable Third Quarter

MediPharm Labs Corp report a profitable third quarter with revenues of $43.4 million, a 38% increase over Q2.

MediPharm Labs Corp a global leader in specialized, research-driven cannabis extraction, distillation and purification, today announced its financial results for the three and nine months ended September 30, 2019.

During the period the Company posted strong growth in revenue, adjusted EBITDA and net income even while making significant investments in capacity and capability that will benefit future performance and support global growth opportunities.


  • Revenue was $43.4 million, a 38% increase over Q2 2019, as the Company expanded its leadership of the Canadian cannabis extraction industry
  • Gross Profit was $14.8 million, a 30% increase over Q2 2019 and Gross Margin was 34% compared to 36% in Q2 2019 despite lower market-selling prices and increased GMP audit certification costs 
  • Adjusted EBITDA was $10.1 million, 31% higher than Q2 2019 and Adjusted EBITDA margin was 23% compared to 24% in Q2 2019 even as the Company made targeted audit-related expenditures to grow its EU-GMP-standard-built production facilities and expand its product capabilities 
  • Net income before tax was $5.4 million compared to net income before tax of $4.1 million in Q2 2019
  • The Company's balance sheet and financial capacity to support growth remained strong, with positive working capital of $87 million and cash and equivalents of $42.1 million at September 30, 2019, as well as unutilized credit under its new facility that closed subsequent to period end
  • Filed an application to list its common shares on the NASDAQ Stock Market after period end

"Results from the third quarter marked our fourth consecutive quarter of positive Adjusted EBITDA(1) and revenue growth," said Patrick McCutcheon, Chief Executive Officer, MediPharm Labs.

"Our results are fueled by our expanding private label business, increasing exports and expanding relationships with our growing customer base.

During the quarter our team has made great strides towards European GMP and Australian compliance of our facilities and continued to build out our capabilities and capacity across our global platforms in Canada and Australia.

These investments will prepare us for a very exciting future as the market and world leader in extraction and white label production." 


Revenue for the nine months ended September 30, 2019 was $96.8 million, gross profit was $32.9 million (gross margin 34%), Adjusted EBITDA was $22.1 million (Adjusted EBITDA margin of 23%) and net income before tax was $9.2 million.

"We are on track to surpass the $100-million milestone in revenue this year, which is a remarkable testament to the tireless efforts of the skilled professionals at MediPharm Labs," said Mr. McCutcheon.

"With the completion of the roll-out of our initial white label products in sight, and as the regulated retail distribution system starts to hit stride, we can seize the opportunities that Cannabis 2.0 brings beginning next year."

To learn more about MediPharm Labs visit their Company HQ here.

Disclaimer: Past performance is not an indicator of future performance.

Disclaimer: past performance is not an indicator of future performance
Get the Latest Marijuana News &
Content in your Inbox!

All your support helps The Green Fund keep writing content for all you
marijuana enthusiasts and potential pot stock investors

Niki Mohazeb
Niki Mohazeb

Niki is a Sydney based writer, with a passion for promoting the health benefits of medicinal cannabis. Niki also enjoys researching and writing about the future of cannabis along with the many other benefits that the plant provides, such as the diverse utilities of hemp.

Leave a Reply

Your email address will not be published. Required fields are marked *