MediPharm Labs Corp. (TSX: LABS) (OTCQB: MEDIF) announced its financial results for the full year and three months ended December 31, 2024.
Fourth quarter earnings
MediPharm reported that its revenue increased 32% to C$12 million versus last year’s fourth quarter revenue of C$9.1 million. International revenue accounted for 54% of the fourth quarter revenue and increased from C$2.4 million in the fourth quarter of 2023 to C$6.5 million in the fourth quarter of 2024.
The company improved its net loss of C$1.8 million in the quarter versus a sequential net loss of C$2.7 million in the third quarter of 2024. However, this was slightly higher than last year’s loss of C$1.6 million in the fourth quarter.
Full year earnings
Net revenue increased by C$9 million or 27% to C$42 million versus the prior year of C$33 million. The total revenue for the year was C$45 million versus 2023’s total revenue of C$36 million. The company said that its international 2024 revenue of C$17.7 million increased 83% from C$9.7 million in 2023, driven by further market penetration, new product launches in Germany and Australia, and new global and domestic partnerships.
MediPharm reported an operating loss for the year of C$10.8 million, which was a big improvement from 2023’s operating loss of C$18.2 million. The net loss for the year was C$10.6 versus a net loss in 2023 of C$13.0 million.
The company told investors in a statement that it had repaid C$2 million of convertible debt, leaving the company materially debt free. However, the company had an accumulated deficit of C$187 million at the end of 2024, which is higher than the accumulated deficit of C$176 million at the end of 2023.
MediPharm also said it is in a strong cash position, is materially debt free, up to date on all cannabis excise duties and regulatory fees and currently has full unencumbered ownership of all production facilities. Still, the company ended the year with C$11.6 million in cash versus C$17.9 million in cash at the end of 2023. The company has negative cash flow from operating activities and has historically incurred net losses.
CEO David Pidduck said, “We are pleased with our progress towards profitability in 2024, driven by 80% growth in our International revenues. International represented over 50% of our Q4 revenues, capitalizing on our EU-GMP licensed facilities. We are well positioned for long-term international success and continue to onboard new customers and distribution partners to meet the growing global demand for premium cannabinoid products.”
The company said in its filing that it planned to sell a facility in Hope, British Columbia that it valued at C$3.7 million. Following the end of the year, on February 26, 2025, MediPharm sold the Hope Facility to Rubicon Organics Inc. for C$4.5 million in cash.
MediPharm also said it is committed to a plan to sell a piece of land located at Yale Road in Hope, British Columbia. The company believes it can sell the property for roughly half a million and recorded an impairment loss of C$190,000 on the property.
CFO Greg Hunter added, “2024 was a transformational year for MediPharm Labs with $42M in net revenue representing a 27% increase versus 2023. Gross margins expanded significantly to 31% versus 18% in 2023 and Adjusted EBITDA loss improved from $10M in 2023 to $1.9M in 2024. We are very close to being Adjusted EBITDA positive with Q4 2024 Adjusted EBITDA loss of $0.1M.”
[[{“value”:”MediPharm is making progress to improve the company’s future based on its international business.
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