- Cannabis company, Emerald Health (TSXV:EMH) has revealed its financial figures for the first quarter of 2020
- The company posted C$2.9 million in quarterly net sales, up from $2.1 million in 2019’s first quarter
- Unfortunately, the increased sales didn’t result in profits, as the company posted a net loss of $4.9 million for the quarter
- The company attributed part of the loss to settling disputes with its joint venture, Pure Sunfarms, as well as$1.1 million of inventory write down
- Emerald Health (EMH) is down 12.5 per cent and is trading at 21 cents per share
Cannabis company, Emerald Health (TSXV:EMH) has reported its financial results from the first quarter of 2020.
The Vancouver-based cannabis producer has increased net sales by C$2.9 million, a 36 per cent increase on the $2.1 million the company made in the same quarter in 2019.
The company sales grew 35 per cent in the adult-use market. The company attributed the increase to better sales of its a high-CBD, low-THC product.
However, the company also posted a net loss of $4.9 million for the quarter, including a $2 million loss from diluting its joint venture with Pure Sunfarms. Emerald health now retains three board seats and a 41.3 per cent interest in Sunfarms.
Further, the company wrote down $1.1 million of inventory for the quarter, which also contributed to the net loss.
Pure Sunfarms also generated impressive sales growth, moving to $18 million in the quarter against a base of $14.4 million the year before.
Riaz Bandali, President and CEO of Emerald Health, said the benefits of the company’s restructuring were starting to emerge.
“While these benefits were not fully realised in our first quarter financials, we can see our operational metrics and financial results clearly moving in the desired direction.
“In not even two full quarters, our two newly launched and scaled up cultivation facilities in BC and Quebec have been achieving important milestones and are positioned to move us toward profitability.
“On top of that we own over 41 per cent of one of the premiere large-scale cannabis cultivation operations in the country,” he said.
Emerald health (EMH) is down 12.5 per cent and Is trading at 21 cents per share.