Mr. Jarrett Malnarich reports
EXPERION REPORTS RECORD REVENUE GROWTH IN Q2 AND REPORTS ON FINANCIAL AND OPERATIONAL HIGHLIGHTS
Experion Holdings Ltd. has released its financial results for its second quarter ended May 31, 2020.
Jarrett Malnarich, chief executive officer of Experion, was quoted: "Gross revenue of $1.7-million in Q2 2020, an increase of 114 per cent over last quarter, and YTD a 61-per-cent increase over the full year 2019, sets a new record for our company. Our strong revenue confirms our ability to cultivate flower at industry-leading levels and the ability to distribute it across Canada. If the events of 2020 to date have demonstrated anything, they show that the depth and overall competencies of the Experion team are amongst the best in the industry. Our ability to optimize our operations to continue to support our leading brand, Citizen Stash, without interruption shows just how flexible and efficient we are as a company. With our ability to scale products and introduce cannabis derivatives, we could not be more excited about the opportunities that lie ahead."
Key financial highlights of the second quarter of 2020:
- Revenue increased 114 per cent in the second quarter compared with the first quarter of 2020; year-to-date revenue of $2.5-million exceeds fiscal 2019 (full year) sales by 61 per cent;
- Processed and sold 290,058 grams of dried flower year to date through its retail distribution network, an increase of 250 per cent over the same period in the prior year;
- Achieved an industry-high average selling price of $8.59 per gram, an increase of 73 cents compared with the first quarter of 2020;
- Gross profit improved 21 per cent in the second quarter of 2020 compared with 4 per cent in the previous quarter due to a higher average selling price per gram and increased economies of scale;
- Successfully reduced operating expenses by $900,000 (32 per cent) compared with the same period in the prior year;
- Adjusted earnings before interest, taxes, depreciation and amortization of $(83,509) represents an increase of $700,000 compared with the prior quarter;
- Well positioned balance sheet with current assets of $5.7-million and net working capital of $4.5-million with no debt.
Key operating highlights of the second quarter of 2020:
- Experion's consumer brand, Citizen Stash, continues to gain traction in the marketplace, which over 600 provincial and private licensed retailers have access to throughout five provinces and two territories across Canada; with the most recent being Ontario;
- Commercialized six new unique cannabis strains to date with another four being launched in the next 60 days to complement the company's existing portfolio;
- Health Canada approved the licence amendment for derivatives in the second quarter of 2020, authorizing Experion to develop, manufacture, sell and distribute cannabis extracts, topicals and edibles to provincial distributors and the adult-use cannabis market across Canada;
- Experion plans to launch a series of in-demand concentrates and edible products under its premium Citizen Stash brand in the next 90 days;
- Established one of the fastest-selling retail brands in Canada, Citizen Stash, offering premium cannabis products.
The management's discussion and analysis, and the accompanying financial statements and notes for the period ended May 31, 2020, are available under the company's profile on SEDAR.
About Experion Holdings Ltd.
Experion is the parent Company of Experion Biotechnologies Inc., a Health Canada licensed cultivator and processor of cannabis, based in Mission, B.C. Experion is invested in a portfolio of products to address a wide spectrum of consumer needs, including adult-use, wellness and therapeutic, and medical products.
We seek Safe Harbor.
© 2020 Canjex Publishing Ltd. All rights reserved.