- Q3 2021 revenue increased 83% YoY to $3.5 million compared to the previous year
- Gross profit before changes in FV in Q3 2021 increased 62% sequentially to $1.7 million
- Medical cannabis revenues increased 46% sequentially to $1.2 million
- Continued strong gross margins for medical cannabis segment at 89%
TORONTO, Nov. 22, 2021 /CNW/ – Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), a vertically integrated cannabis leader with core operations in Latin America and Europe, today announces its financial results for the quarter ended September 30, 2021. These filings are available for review on the Company’s SEDAR profile at www.sedar.com. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
Third Quarter 2021 Highlights
- Medical cannabis revenue of $1.2 million, represents 34% of total revenue
- Europe represents 31% of medical cannabis revenue
- Increased gross margin for clinic services segment of 26%, compared to 12% in Q3 2020 and 15% in Q2 2021
- Over 50% year-over-year reduction in net loss of -$3.3 million, compared to -$6.7 million in Q3 2020
- $15.4 million in cash as of September 30,2021
Summary of Key Financial Results
| 3 Months Ended Sept 30 2021 | 3 Months Ended Sept 30 2020 | 9 Months Ended Sept 30 2021 | 9 Months Ended Sept 30 2020 | |
| Canadian dollars | ||||
| $ | $ | $ | $ | |
| Revenues (‘000s) | 3,519 | 1,928 | 9,159 | 5,499 |
| Medical Cannabis | 1,208 | 110 | 2,596 | 136 |
| Gross profit before fair value adjustments (‘000s) | 1,693 | 323 | 3,829 | 1,079 |
| Gross profit from Medical Cannabis | 1,079 | 100 | 2,311 | 120 |
| General and administrative costs (‘000s) | -4,647 | -5,341 | -14,667 | -15,719 |
| Net loss (‘000s) | -3,337 | -6,715 | -13,641 | -21,665 |
| Adjusted EBITDA (1) (‘000s) | -3,772 | -4,706 | -11,730 | -14,426 |
| Net loss per share (basic and diluted) | 0.02 | 0.06 | 0.09 | 0.19 |
| Weighted average shares outstanding (‘000s) | 177,029 | 117,644 | 159,688 | 116,937 |
| (1) | Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization or in this case loss) is a non-International Financial Reporting Standards (“IFRS“) measure calculated as net loss before tax as reported under IFRS and adding back share-based compensation expense, transaction fees, unrealized gain on changes in fair value of biological assets, depreciation and non-recurring items. Refer to the “Non-IFRS Measures” note below for further information and the Company’s MD&A for a reconciliation. |
Key Operating Statistics
| 3 Months Ended Sept 30 2021 | 3 Months Ended Sept 30 2020 | 9 Months Ended Sept 30 2021 | 9 Months Ended Sept 30 2020 | |
| Canadian dollars | ||||
| Medical Cannabis | ||||
| Revenue generating countries (#) | 4 | 2 | 4 | 2 |
| Latin America (Units) | 15,621 | 380 | 34,899 | 2,231 |
| Europe (Sell-out Grams) | 33,265 | N/A | 52,785 | 3,810 |
| Health Services | ||||
| Patient interactions (#) | 38,900 | 27,788 | 104,215 | 73,415 |
| Wellness | ||||
| Units (#) | 2,322 | 3,688 | 8,253 | 13,241 |
Management Commentary
“In Q3, we achieved strong results and broke revenue and profitability milestones, surpassing our first million dollars in medical cannabis revenues and gross profits. Prescription growth were driven by our patient-focused operations in Colombia and Germany. In the first 9 months of 2021, we have already exceeded 2020 medical cannabis sales by more than 600% while maintaining medical cannabis margins of over 89%. ” comments Alvaro Torres, Chief Executive Officer and Director of the Company.
Mr. Torres continues, “As expected, Europe is becoming a more significant region for Khiron, representing 31% of our medical cannabis revenue. With the opening of ZereniaTM Clinics in the UK, we have now established an international clinic footprint that will continue to drive sustainable growth in the future. A year ago, our Company was just starting medical cannabis sales in Colombia, and now we have 15 clinics, in 5 countries, and soon in Mexico. We are very excited about our quarterly growth rate, and the growing evidence that Khiron is fulfilling its mission to improve the quality of life of our patients.”
Khiron invites individual and institutional investors, as well as advisors and analysts, to attend the Company’s Third Quarter 2021 Conference Call, followed by a Q&A session.
Conference Call Date: November 22, 2021
Time 10:00 a.m. Eastern time
Toll-free dial-in number: 1-877-270-2148
International dial-in number: 1-412-902-6510
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Khiron Investor Relations team at (647) 556-5750
A telephonic replay of the conference call will also be available after 8:00 p.m. Eastern time on the same day through November 29, 2021.
Toll-free replay number: 1-877-344-7529
International replay number: 1-412-317-0088
Canada Toll Free: 855-669-9658
Replay ID: 10162133
