TORONTO, May 15, 2023 /CNW/ - MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) ("MediPharm", "MediPharm Labs" or the "Company") a pharmaceutical company specialized in precision-based cannabinoids, today announced its financial results for the three months ended March 31, 2023.
First Quarter 2023 -- Select Highlights
Progress Towards Profitability -- Achieved strongest EBITDA(1) in two years as compared to prior quarters, reducing losses to ($2.1M) with continued focus on growing gross margin positive revenue segments, streamlining operations and reducing operating expenses. Adjusted EBITDA(1) of ($3.1M) with the inclusion of a one-time reversal of bad debt collected.(3)(4)(5) -- Subsequent to closing of the Company's acquisition of VIVO Cannabis Inc. ("VIVO") on April 1, 2023 (the "Transaction"), the Company has implemented its plans to reduce the combined MediPharm and VIVO non-direct labour workforce by approximately 30%, since the announcement of the Transaction. This is in addition to previously announced significant restructuring efforts made separately by both companies in 2022. This reduction is expected to save over $4M on an annualized basis as MediPharm Labs progresses towards achieving positive EBITDA(1) synergies between $7M to $9M on an annualized basis.(2)(3)(4) -- Q1 2023 saw growth in revenue of 20% on a year over year basis and slightly increased quarter over quarter despite the seasonality of the Canadian adult-use market. Operating expenses reduced by 47% as compared to Q1 2022. -- Gross profit was positive for the second consecutive quarter.