Medipharm Labs Corp T.LABS

Negative gross margin

[lscfa]

How about some transparency. Recall when LABS, VLNS and others where bragging about how much processing capacity they were building out. Now there is not a peep from any of them about how much capacity they have. This over-building is showing up as a big depreciation expense in costs of revenue. They need to scale up the business to turn a gross profit.

[lscfa]

Small operators more profitable... Ayurcann     Qtr ending Revenue Gross profit Margin Op. Income Jun21 2,659,087 2,313,898 87.0% 1,237,521 Mar 21 2,626

[mcamm10]

This post has been removed in accordance with Community Policy

[lscfa]

Appears to be due to high raw material prices. Maybe do what Valens did to turn gross profit positive.  Medipharm MD&A: "The Group continues to refine its production processes and methodologies, and sell through historically acquired higher priced raw materials, and expects to increase production efficiency and gross profit."   Valens Jan 19/21 NR:  

[lscfa]

Medipharm has been writing down inventory to net realizable value for many quarters so how the hell can it still have high priced raw materials? SOBs are not being honest. 9 months Sept 2021.....$6,255,000 12 months Dec 2020.....$29,795,000

[allibabba]

I agree, something is t adding up here.  I also can't believe how many people are saying this was a good quarter when revenues are flat and negative margins.  Lots of companies out there with much more attractive financials.

[mcamm10]

This post has been removed in accordance with Community Policy

[allibabba]

Don't get me wrong, I don't think that this company is going to fold anytime soon, however it will be many years down the road before you see cannabis drug to replace antibiotics or any other drug for that matter.  This process is very long and gruelling and big pharma is trying to block it from happening.  If there is still money left by the time cannabis drugs become mainstream

[lscfa]

I think the truth is CO2 extraction at current volumes and pot prices is not profitable. Medipharm is exclusively CO2 whereas others like Valens do CO2 as well as ethanol, hydrocarbon .etc.         

[lscfa]

  solution is scale the biz.     LABS mgmt, get on with it.             MediPharm Valens Q1 Revenue 5,495 21,774    adj. ebitda (6,159)