- Relevium Technologies (RLV) has reported a net loss of C$197,871 in its the first quarter of this year
- The company embarked on a cost-cutting and remodelling of its product offerings, pulling all but the top 20 per cent most profitable products from shelves
- Relevium’s revenues fell from $1.03 million in last years first quarter to $529,735 this year
- The company’s net margin also grew from 54 per cent in 2019 to 79 per cent this year
- Relevium Technologies (RLV) is down 14 per cent and is trading at three cents per share
Medicinal cannabis manufacturer, Relevium Technologies (RLV) has reported a net loss for the first quarter of this year,
However, this result is still an improvement on last year’s comparable quarter, when the company reported a net loss of $955,038.
Relevium’s quarterly revenue fell to approximately $529,735, down from 2019’s first quarter total of $1.03 million.
During the quarter Relevium embarked on a complete review of its products portfolio and its overall cost’s structure.
The company started removing high cost and high competition product lines from its portfolio, and hopefully re-emerge in a more competitive position.
However, this has meant that the transition quarter has been particularly horrid for the company. Sales were reduced to focus on only the most profitable 20 per cent of the company’s offerings, which results in the halving of quarterly revenue.
However, the company’s margins did creep up from 54 per cent in 2019 to 79 per cent in 2020. The company decreased costs from approximately $1.07 million in 2019 to $434,136 this year.
Relevium’s CEO, Aurelio Useche said that this has been an extraordinarily challenging time for both people and businesses globally.
“We have remained active and taken the opportunity to reset our costs structure.
“We are actively taking this opportunity as well with the goal of seeing our business strategies thrive over the longer term as we introduce new products that support current opportunities in the market,” he said.
Relevium Technologies (RLV) is down 14 per cent and is trading at three cents per share at 1:15 pm EDT.