Progress towards Profitability !! Almost there :) $$$$ Progress toward profitability:
- Medipharm achieved a 2023 gross margin of 18 per cent versus negative 9 per cent in 2022. Positively moving to 24 per cent in Q4 2023. This improvement is a trend the company believes will continue. With the success in improving product mix and cost of goods sold, Medipharm now has the foundation for a profitable future.
- Total opex (operating expenditures), which includes general administrative, marketing and selling, and research and development expenses, was reduced by $2-million, or 10 per cent, on a year-over-year basis, while growing sales by 50 per cent in the same time period. Additional reductions implemented in Q4 2023 will further reduce opex in 2024. This execution of doing more with less has resulted in a revised cost base, positioning the company for profitability.
- Medipharm plans to further improve on profitability in 2024, including optimizing facility utilization with additional contract manufacturing, growing sales of healthy margin products, increasing international sales with local pharmaceutical partners, and refreshing the Canadian adult use and wellness portfolio to grow sales in the company's largest addressable market.
Management commentary
David Pidduck, chief executive officer, Medipharm Labs, commented: "Medipharm now has the margins, opex and adjusted EBITDA results all trending in the right direction. We also have a robust revenue pipeline with multiple partners in multiple markets. The transformation to a profitable growing company continues. Over the years, we have invested in our infrastructure as a high-quality and high-capacity pharmaceutical-grade manufacturer, allowing us to grow sales with new opportunities and markets, without additional investment into capital or resources. We are proud of the work completed in 2023 and excited about the future of Medipharm Labs."