Auxly Generates $10M In Q1 Revenue, Cannabis Sales Account For 80%

Auxly Cannabis Group Inc. (TSX.V: XLY)(OTCQX: CBWTF) reported Monday it has reached record revenue of $9.9 million in the first quarter.

The substantial year-over-year revenue growth of 1,100% is mainly driven by so-called Cannabis 2.0 product sales from Dosecann.

"These results are a culmination of focus and hard work by the tremendous team that makes up the Auxly family," said the company's CEO Hugo Alves in a statement.

Here are some of the quarterly financial highlights the company posted:

• Negative adjusted EBITDA of $8.16 million versus a loss of $7.36 million in the first quarter of 2019
• Net loss of $13.1 million, down by approximately 4.5% compared to the same period last year
• Revenue from sales of cannabis products totaled $10.5 million, compared to $292 000 recorded in the corresponding quarter of 2019.
• Vapes accounted for over 65% of total cannabis revenues
• Gross profit of $2.8 million versus a gross loss of $189 000 in the first quarter of last year
• Total expenses including SG&A expenses, depreciation and amortization, and interest expense went up by roughly 20%, reaching around $18.6 million

"We remain focused on the continued execution of our corporate strategy and are committed to expanding our capabilities, both nationally and internationally, as we continue to fuel growth and generate value for our stakeholders," stated Alves.

Some of the achievements Auxly reported in the earnings report include: the partnership between its subsidiary – Dosecann LD Inc. – and  Medical Cannabis by Shoppers Drug Mart; securing of $25 million in financing through an agreement with an undisclosed institutional investor; and obtaining of Health Canada's sales license for its subsidiary, Robinsons Cannabis Inc.