MediPharm Labs (LABS) Q4 2024 earnings summary

Executive summary

• Net revenue for 2024 rose 27% year-over-year to $42M, driven by record $18M international medical cannabis revenue.

• Gross profit improved to $12.8M (31% margin) from $5.8M (18%) in 2023.

• Adjusted EBITDA loss narrowed to $1.9M, an $8.3M improvement versus 2023; Q4 Adjusted EBITDA loss was $0.1M.

• International revenue accounted for 54% of Q4 revenue, up from 27% in Q4 2023.

• Company remains materially debt free, with $11.7M in cash and full ownership of production facilities.

Financial highlights

• Q4 2024 revenue was $12M, up 32% from Q4 2023; gross profit was $3.6M (30% margin), up from $2.2M (24%).

• International medical cannabis revenue grew 83% in 2024 to $17.7M, with Q4 international revenue at $6.5M.

• Operating expenses for Q4 were $5.1M, down from $5.6M in Q1 2024.

• Adjusted EBITDA loss for Q4 improved 94% year-over-year to $0.1M.

Outlook and guidance

• Sale of Hope facility for $4.5M expected to close in Q2 2025, supporting further cost savings.

• Management anticipates continued international growth and is focused on onboarding new customers and partners.

• Company is positioned for long-term international success, leveraging EU-GMP licensed facilities.