Vertically integrated cannabis company Cansortium Inc. (CSE:TIUM) (OTCQX:CNTMF), which operates under the Fluent brand, announced its financial results Tuesday for the second quarter ended June 30, 2021.
In its second-quarter earnings report, the Miami-based company revealed a 24% year-over-year improvement in revenue, which amounted to $16.5 million.
“We continued to drive growth and profitability in our key markets during the second quarter, as reflected by another month of record sales in May,” Robert Beasley, the company’s CEO said. “Our continued focus on providing differentiated, high-quality flower and wellness products have been well received by our patients.”
On Monday, the company announced it had received approval from the Florida Department of Health to commence operation of a new 43,000 square-foot greenhouse cultivation facility in Homestead, Florida and a 40,000 square-foot greenhouse expansion at its Sweetwater, FL cultivation facility.
Q2 2021 Financial Highlights
- Florida revenue increased 22% to $14.6 million compared to $12 million in the same period of 2020.
- Adjusted gross profit, a non-IFRS financial measure, increased 24% to $10.7 million or 65.1% of revenue, compared to $8.7 million or 65.5% of revenue in the corresponding quarter of last year.
- Adjusted EBITDA approximately doubled to $5.2 million or 31.8% of revenue, compared to $2.6 million or 19.7% of revenue in the prior year’s period.
- On June 30, the company had roughly $26 million of cash and cash equivalents and $71 million of total debt, with approximately 264 million fully diluted shares outstanding.
Recent Operational Milestones
- Launched Sweetwater, a new line of premium cannabis whole flower.
- Hired a new head of cultivation and appointed multiple board members, including Mark Eckenrode, Alex Spiro and the new executive chairman of the board, William Smith.
- Opened its 26th Florida dispensary in Deerfield Beach.
- All convertible notes from the company’s capital structure were converted to shares during the second quarter, with $18 million of debt being converted into the company’s common shares.
- Approximately 2,600 lbs. of biomass sold from Michigan’s inventory in July.
“Overall, we continue to expect significant growth in 2021,” Beasley continued. “Our revised outlook for 2021 calls for $70-80 million of revenue with $18-26 million of adjusted EBITDA1, reflecting year-over-year growth of approximately 43% and 114%, respectively. We see upside to these numbers if the construction market opens up earlier than our current projections.”
Price Action
Cansortium’s shares traded 5.56% higher at $0.76 per share at the time of writing Wednesday late morning.
Photo: Courtesy of Daniel Norin on Unsplash
