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Delivra Health and Its Brands LivRelief (TM) and Dream Water (TM) Report Positive Adjusted EBITDA(1) for Second Quarter of Fiscal 2023

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Vancouver, British Columbia–(Newsfile Corp. – February 22, 2023) – Delivra Health Brands Inc. (TSXV: DHB) (OTCQB: DHBUF) (formerly, Harvest One Cannabis Inc.) (“Delivra Health” or the “Company“), a consumer packaged goods company uniquely positioned in the health and wellness sector, is pleased to announce its financial and operating results for the three and six months ended December 31, 2022.

Management Commentary

“The second quarter of fiscal 2023 (“Q2 2023“) reflects the start of a new phase in our history as Delivra Health has now become a profitable business,” said Gord Davey, President and Chief Executive Officer of Delivra Health. “In Q2 2023, the Company reported positive adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA“)(1). Since the start of our strategic reorganization in March 2020, the Delivra Health team has worked diligently on its customer mix, margins and achieving a responsible level of selling, general and administrative expenses (“SG&A“). These positive Q2 2023 results demonstrate that our business model is effective and scalable without burning significant cash going forward. With the sale of our Lucky Lake facility, Delivra Health’s balance sheet is now well positioned for future growth. The Company will be increasing its investment in further innovation projects, customer programs and marketing campaigns.”

Financial Highlights for the Quarter Ending December 31, 2022

Net revenue: The Company reported total net revenue from continued operations of $2.39 million in the second quarter of fiscal 2023 as compared to $1.74 million in same period last year, representing an approximate 37% increase. This increase was primarily due to higher sales of Dream Water™ in US to international distributors and higher sales of the Company’s licensed LivRelief™ cannabis-infused topical creams in Canada.

Gross profit and gross profit margin: The Company reported for the 3 months ended December 31, 2022 gross profit of $0.98 million and a gross profit margin of 41% from continued operations as compared to $0.64 million and 37% in same period last year. The increase in gross profit and gross profit margin was the result of increased sales volume of the Company’s licensed 2.0 LivRelief™ products and higher margin sales from the US and international distributors.

Expenses including SG&A and excluding non-cash items: For the three months ended December 31, 2022, the Company reported expenses of $0.96 million as compared to $1.75 million in the same period last year, representing a 45% reduction. The reduction was mainly driven by the implementation of certain operational improvements and cost reduction measures identified in the Company’s strategic review, which was completed on March 29, 2021 (the “Strategic Review“), and which resulted in lower sales and marketing expenses.

Adjusted EBITDA(1): For the three months ended December 31, 2022, the Company reported Adjusted EBITDA of $0.14 million as compared to $(0.95) million in the same period last year, representing a $1.09 million year over year improvement from continued operations. This increase in EBITDA resulted from management’s focus on customer mix, gross profit margin improvement and efficient administrative and selling support functions.

Financial Highlights for the Six Months Ending December 31, 2022

Net revenue: The Company reported total net revenue from continued operations of $4.12 million compared to $3.87 million in same period last year which is approximately a 6% increase. This increase was due to higher sales of Dream Water™ in US to international distributors and higher sales of the Company’s licensed LivRelief™ cannabis-infused topical creams in Canada as a result of the timing of customer ordering patterns experienced and expressed by management in the first quarter of fiscal 2023.

Gross profit and gross profit margin: The Company reported year-to-date gross profit of $1.86 million and a gross profit margin of 45% from continued operations as compared to $1.35 million and 35% in same period last year. The increase in gross profit and gross profit margin was the result of increased sales volume and improved customer mix supported by well-controlled operational costs.

Expenses including SG&A and excluding non-cash items: For the six months ended December 31, 2022, the Company reported expenses of $2.01 million compared to $3.24 million in the same period last year, representing a 38% reduction. As noted previously, the reduction was mainly driven by the implementation of certain measures identified in the Company’s Strategic Review, which resulted in lower sales and marketing expenses to conserve cash.

Adjusted EBITDA(1): For the six months ended December 31, 2022, the Company reported Adjusted EBITDA of $(0.015) million compared to $(1.73) million in the same period last year, representing a $1.74 million year over year improvement from continued operations. This increase in EBITDA was driven by management’s efforts in focusing on the right customer mix, margin improvement supported by efficient administrative and selling support functions.

Summary of Key Financial Results

For the three months ended
December 31
For the six months ended
December 31
($000’s, except share and per share amounts) 2022 2021 2022 2021
Continued operations: $ $ $ $
Net revenue 2,392 1,746 4,121 3,876
Cost of sales 1,284 941 2,124 2,362
Inventory write-down 121 161 132 161
Gross profit 987 644 1,865 1,353
Expenses excluding non-cash expenses 968 1,759 2,012 3,246
Depreciation and amortization and share based compensation 410 614 781 1,300
Total Expenses 1,378 2,373 2,793 4,546
Loss from Operations (391) (1,729) (928) (3,193)
Other (expense) income 1,281 99 1,434 110
Net gain (loss) from continued operations 890 (1,630) 506 (3,083)
Net gain (loss) per share – basic and diluted 0.004 (0.01) 0.002 (0.01)

 

Adjusted EBITDA(1) (non-IFRS measure)

For the three months ended
December 31
For the six months ended
December 31
($000’s, except share and per share amounts) 2022 2021 2022 2021
Loss from operations (391) (1,729) (928) (3,193)
Inventory write-down 121 161 132 161
Depreciation and amortization 332 527 664 1,064
Share-based compensation 78 87 117 236
Adjusted EBITDA(1) 140 (954) (15) (1,732)
(1) Defined as loss from operations before interest, taxes, depreciation and amortization and adjusted for share-based compensation, common shares issued for services, asset impairment and write-downs, discontinued operations and other non-cash items, and is a non-IFRS measure discussed in the “Adjusted EBITDA” section.

 

Expenses excluding non-cash items

For the three months ended
December 31
For the six months ended
December 31
($000’s, except share and per share amounts) 2022 2021 2022 2021
General and administration 888 1,157 1,853 2,232
Sales and marketing 80 602 159 1,014
Total 968 1,759 2,012 3,246

 

About Delivra Health Brands Inc.

Helping people take control of their health with alternative wellness solutions is what energizes the Delivra Health team! The Delivra Health portfolio features innovative brands like Dream Water™ and LivRelief™, which deliver relief from common everyday issues like chronic pain, anxiety, and sleeplessness. Delivra Health products have allowed millions of customers to reclaim their mobility, energy, and in turn, quality of life. The websites of the Company’s two subsidiaries are Dream Water™ and LivReliefTM. For more information, please visit www.delivrahealthbrands.com.

Non-IFRS Measures, Reconciliation and Discussion

This press release contains references to “Adjusted EBITDA” which is a non-IFRS financial measure. Adjusted EBITDA is a measure of the Company’s loss from operations before interest, taxes, depreciation, and amortization and adjusted for share-based compensation, common shares issued for services, fair value effects of accounting for biological assets and inventories, asset impairment and write-downs, and other non-cash items, and is a non-IFRS measure.

This measure can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures. It is often used in valuation ratios and can be compared to enterprise value and revenue. This measure does not have any standardized meaning according to IFRS and, therefore, may not be comparable to similar measures presented by other companies.

There are no comparable IFRS financial measures presented in Delivra Health’s financial statements. Reconciliations of the supplemental non-IFRS measure are presented in the Company’s Management Discussion and Analysis for the three and six months ended December 31, 2022. This non-IFRS financial measure is presented because management has evaluated the financial results both including and excluding the adjusted items and believes that the non-IFRS financial measure presented provides additional perspective and insights when analyzing the core operating performance of the business. The Company believes that the supplemental measure provides information which is useful to shareholders and investors in understanding the Company’s performance and may assist in the evaluation of the Company’s business relative to that of its peers.

The non-IFRS financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with the IFRS financial measures presented in the Company’s financial statements. For more information, please see “Adjusted EBITDA (non-IFRS measure)” and “Non-IFRS Measures” in the Company’s Management Discussion and Analysis for the three and six months ended December 31, 2022, which is available under the Company’s System for Electronic Document Analysis and Retrieval (“SEDAR“) profile on www.sedar.com.

Notes:

  1. This is a non-IFRS reporting measure. For a reconciliation of this measure to the nearest IFRS measure, see “Adjusted EBITDA (non-IFRS measure)” and “Non-IFRS Measures” in the Company’s Management Discussion and Analysis for the three and six months ended December 31, 2022.

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates, and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements include, among other things, statements with respect to the Company’s growth objectives, planned investment activities, management of expenses, increasing revenues and profitability, growth in new markets, and new distribution partners.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: implications of the COVID-19 pandemic on the Company’s operations; fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the cannabis markets where the Company operates; changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; employee relations and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution, and sale of cannabis and cannabis-related products in the markets where the Company operates. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Additional information regarding this and other risks and uncertainties relating to the Company’s business are contained under the heading “Risk Factors” in the Company’s annual information form dated March 2, 2021, and under the heading “Risks and Uncertainties” in the Company’s management’s discussion and analysis dated February 22, 2023, for the year ended June 30, 2022, filed under the Company’s profile on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange (“TSX-V“) nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accept responsibility for the adequacy or accuracy of this release.

Investor Relations:
Jack Tasse
Chief Financial Officer
[email protected]
1-877-915-7934

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/155687

Cannabis

Cannabis Testing Market Worth $4.0 billion | MarketsandMarkets™

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cannabis-testing-market-worth-$4.0-billion-|-marketsandmarkets™

CHICAGO, May 23, 2024 /PRNewswire/ — Cannabis Testing Market in terms of revenue was estimated to be worth $1.8 billion in 2024 and is poised to reach $4.0 billion by 2029, growing at a CAGR of 17.2% from 2024 to 2029 according to a new report by MarketsandMarkets™.

The important factors impacting market growth are legalization trends and rising medical applications for cannabis. Rising approvals for medical and recreational cannabis drive the regulations requiring product safety testing which in turn fuel the need for cannabis testing services. Additionally, the rise in the number of cannabis testing labs due to legalization is propelling the demand for analytical instruments is likely to uplift market growth in coming years.

Download an Illustrative overview: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=46932450

Browse in-depth TOC on “Cannabis Testing Market”
439 – Tables
52 – Figures
378 – Pages

Cannabis Testing Market Scope:

Report Coverage

Details

Market Revenue in 2024

$1.8 billion

Estimated Value by 2029

$4.0 billion

Growth Rate

Poised to grow at a CAGR of 17.2%

Market Size Available for

2022–2029

Forecast Period

2024–2029

Forecast Units

Value (USD Billion)

Report Coverage

Revenue Forecast, Competitive Landscape, Growth Factors, and Trends

Segments Covered

By Product & Software, By Service & By End User

Geographies Covered

North America, Europe, the Asia Pacific, Latin America and the Middle East & Africa

Report Highlights

Updated financial information / product portfolio of players

Key Market Opportunities

Untapped markets in emerging economies

Key Market Drivers

Increasing legalization of medical and recreational cannabis

Products segment held the highest estimated share of the cannabis testing market.

Based on product & software, the cannabis testing market is segmented into products (analytical instruments {chromatography instruments [liquid chromatography, gas chromatography & other chromatography instruments], spectroscopy instruments [mass spectrometry instruments & atomic spectroscopy instruments] & other analytical instruments} and consumables {chromatography columns, standards and CRMS, sample preparation products and other consumables) and software. The product segment accounted for the largest share of the cannabis testing market in 2023. Market growth is driven by technological advancements providing sophisticated tools for precise analysis, ensuring compliance and quality control, and the expanding legalization of cannabis products. Additionally, increasing requirements for potency labeling and pesticide screening fuel the demand for specialized consumables, further propelling growth in the cannabis testing market. For example, Thermo Fisher Scientific Inc. launched the Thermo Scientific SureSTART consumables portfolio consisting of vials, well plates, caps, inserts, kits, and mats to improve analytical performance and sample security for chromatography and mass spectrometry users in routine and research labs in clinical, food, pharma, biopharma, environmental, and academic sectors.

High growth of services segment attributed to potency testing services.

Based on service, the cannabis testing market is broadly segmented into terpene profiling, microbial analysis, residual solvent analysis, potency testing, heavy metal testing, pesticide screening, and other services. In 2023, potency testing accounted for the largest share of the cannabis testing services market. The high growth of this segment is due to stringent regulatory requirements ensuring accurate THC and CBD levels. This is crucial for product labeling, consumer safety, and compliance, driving demand from producers and dispensaries seeking to meet legal standards and provide reliable, high-quality products.

Services take away the largest estimated share of the end-user segment.

Based on end users, the cannabis testing market is classified into segmented into product & software end users (cannabis testing laboratories {small-scale laboratories, medium-scale laboratories, large-scale laboratories} and research institutes) and service end users (cannabis drug manufacturers & dispensaries, cannabis cultivators/growers). In 2023, the service end users’ segment was predicted to account for the highest share of the global cannabis testing market. The large share of this end user segment is due to the rising consumer awareness of quality and safety, rising legalization of cannabis, stringent regulatory standards, and technological advancements in cannabis testing.

During the forecast period, North America displayed lucrative market growth.

North America accounted for the largest share of 65.5% of the cannabis testing market in 2023. The North American market is projected to reach a value of USD 2.6 billion by 2029 from an estimated value of USD 1.2 million in 2024, at a CAGR of 17.3% during the forecast period. The region leads the cannabis testing market due to stringent regulatory standards, robust infrastructure, and widespread legalization of cannabis for medical and recreational purposes. Additionally, North America’s advanced R&D capabilities and evolving consumer demand for quality assurance drive its prominence in this growing sector.

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Cannabis Testing Market Dynamics:

Drivers:

  1. Increasing legalization of medical and recreational cannabis
  2. Increasing use of cannabis for medicinal applications
  3. Technological advancements in testing technologies

Restraints:

  1. Lack of standardization
  2. Investment risks due to regularization

Opportunities:

  1. Untapped markets in emerging economies
  2. Research collaborations

Challenge:

  1. High setup costs

Key Market Players of Cannabis Testing Industry:

The global cannabis testing market comprises many key market players competing for markets shares like Agilent Technologies, Inc. (US), Shimadzu Corporation (Japan), Thermo Fisher Scientific Inc. (US), Danaher Corporation (US), Waters Corporation (US), Restek Corporation (US), SGS SA (Switzerland), Merck KGaA (Germany), PerkinElmer, Inc. (US), Hamilton Company (US), Sigma Analytical Services (Canada), SC Labs (US), PharmLabs LLC (US), MCS, Inc. (US), ProVerde Laboratories (US), and Eurofins Scientific (Luxembourg).

The primary interviews conducted for this report can be categorized as follows:

  • By Respondent: Supply Side- 70%, and Demand Side – 30%
  • By Designation (Supply Side): Managers – 45%, CXOs & Directors – 30%, Executives- 25%
  • By Region: North America -40%, Europe -25%, Asia-Pacific -20%, Latin America -10%, MEA- 5%

Recent Developments:

  • In September 2023, Shimadzu Corporation launched the Brevis GC-2050 gas chromatograph used in various applications including cannabis testing.
  • In April 2023, SC Labs, one of the leading cannabis testing companies, acquired C4 Laboratories, one of the first Arizona cannabis labs, thus allowing it to be licensed and accredited in five states: California, Colorado, Michigan, Oregon, and Arizona.
  • In June 2022, Shimadzu Corporation launched the AA-7800 series atomic absorption spectrophotometers. The AA-7800 series is used for quality control in the raw material, food, and for inspecting water quality and hazardous substances in soil thus presenting an advantage in heavy metal testing of cannabis.

Get 10% Free Customization on this Report:
https://www.marketsandmarkets.com/requestCustomizationNew.asp?id=46932450

Cannabis Testing Market – Key Benefits of Buying the Report:

The report will help market leaders/new entrants by providing them with the closest approximations of the revenue numbers for the overall cannabis testing market and its subsegments. It will also help stakeholders better understand the competitive landscape and gain more insights to better position their business and make suitable go-to-market strategies. This report will enable stakeholders to understand the market’s pulse and provide them with information on the key market drivers, restraints, opportunities, and challenges.

The report provides insights on the following pointers: 

  • Analysis of key drivers (increasing legalization of medical and recreational cannabis, increasing use of cannabis for medicinal applications and technological advancements in testing technologies), restraints (lack of standardization and investment risks due to regularization), opportunities (untapped markets in emerging economies and research collaborations) and challenges (high setup costs) are influencing the growth of cannabis testing market.
  • Product Development/Innovation: Detailed insights on newly launched products of the cannabis testing market.
  • Market Development: Comprehensive information about lucrative markets – the report analyses the cannabis testing market across varied regions.
  • Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the cannabis testing market.
  • Competitive Assessment: In-depth assessment of market shares, growth strategies, and product offerings of leading players include Agilent Technologies, Inc. (US), Shimadzu Corporation (Japan), Thermo Fisher Scientific Inc. (US), Danaher Corporation (US), Waters Corporation (US), Restek Corporation (US), SGS SA (Switzerland), Merck KGaA (Germany), PerkinElmer, Inc. (US), Hamilton Company (US), Sigma Analytical Services (Canada), SC Labs (US), PharmLabs LLC (US), MCS, Inc. (US), ProVerde Laboratories (US), and Eurofins Scientific (Luxembourg) among others in the cannabis testing market.

Related Reports:

Drug Screening Market – Global Forecasts to 2029

Laboratory Proficiency Testing Market – Global Forecasts to 2028

Life Science Instrumentation Market – Global Forecasts to 2028

Digital PCR Market – Global Forecasts to 2028

Flow Cytometry Market – Global Forecasts to 2028

Get access to the latest updates on Cannabis Testing Companies and Cannabis Testing Industry Growth

About MarketsandMarkets™:

MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.

MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.

Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.

The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.

Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.

To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.

Contact:
Mr. Aashish Mehra
MarketsandMarkets™ INC.
630 Dundee Road
Suite 430
Northbrook, IL 60062
USA: +1-888-600-6441
Email: [email protected]
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Solei Brand Introduces New Cannabis-Infused ‘Warming Deep Tissue Stick’

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Medical Cannabis Market Report 2024-2030: Asia-Pacific Set to Witness Robust Growth, Driven by R&D Discovery Initiatives

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