Zenabis Global Inc. (ZENA.TO), a Canadian licensed cultivator of medical and recreational cannabis, overnight Wednesday reported fourth-quarter 2020 net loss from continuing operations of $9.9 million, or a loss of $0.01 per share, narrowing from a loss of $46.2 million, or a loss of $0.18 per share, in the year-ago quarter. Net revenue for the quarter amounted to $15.9 million, up from $10.9 million a year ago. Adjusted EBITDA income from continuing operations improved year over year to $672,108 from a loss of $11.2 million a year ago. For the full year 2020, net loss from continuing operations came to $54.9 million, or a loss of $0.10 per share, compared with a loss of $72.6 million, or a loss of $0.30 per share, a year ago. Net revenue for the full year 2020 totaled $59.3 million, an increase from $30.4 million a year ago. Adjusted EBITDA income from continuing operations amounted to $3.5 million, rising from a loss of $38.7 million a year ago. Zenabis attributed the revenue increase to growth across all channels, including consumer sales, exports and domestic wholesale bulk, along with the impact of new products commercialized during the year, specifically the PAX and 510-threaded vaporizer cartridges. "Sales into the Canadian recreational market grew 78% as the recreational market grew during the year, but more importantly, the company's market share increased from 1.0% to 1.7%," said Shai Altman, CEO of Zenabis. The company said it sees opportunities for continued growth in the Canadian recreational market in 2020 with the continued addition of retail stores throughout the country, boosting access to cannabis products. The Canadian adult-use recreational market is also expected to expand due to increasing availability of derivative products. Zenabis also believes shipments will recommence in the second quarter into export markets as new regulatory requirements are addressed in markets introduced in the fourth quarter of 2020. |