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- $6.8 million in net revenue, 43% increase over Q4 2020
- Achieved first ever quarter of positive cashflows from operations
- 7.6% national market share of premium flower and pre-rolls1
- #1 Premium flower and pre-roll brand in Canada with Simply BareTM Organic2
VANCOUVER, British Columbia, April 18, 2022 (GLOBE NEWSWIRE) — Rubicon Organics Inc. (TSXV:ROMJ) (OTCQX:ROMJF) (“Rubicon Organics” or the “Company”), a licensed producer focused on cultivating and selling organic certified, premium cannabis, today reported its financial results for the fourth quarter ended December 31, 2021 (“Q4 2021”). All amounts are expressed in Canadian dollars.
“Building premium brands that consumers love and are loyal to begins with a culture that prioritizes quality. We have invested in our facility and our cultivation systems which have resulted in a progressive reduction in our production costs quarter over quarter with corresponding increases in yield and quality , helping us to grow sequentially our margins. We also continue to make progress toward exporting our brands internationally. Together, with cost-saving measures undertaken in the first quarter, we reiterate our guidance of achieving positive Adjusted EBITDA and operating cashflow in the second half of 2022,” said Jesse McConnell, Chief Executive Officer.
Q4 2021 Highlights:
- Net revenue of $6.8 million was an increase of 43% from the same period in the prior year
- The Company achieved its first ever quarter of positive operating cashflows of $0.5 million
- Maintained position as #1 brand in the premium flower and pre-roll category in Canada with Simply BareTM Organic2
- Process improvements at the Delta Facility have driven cost savings resulting in a $2.2 improvement to gross profit before fair value adjustments when compared to the fourth quarter of 2020
- The Company completed a greenhouse climate system upgrade with the recent commissioning of newly installed HVAC units and progressed with its BC Hydro power upgrade, designed to both reduce the Company’s annual operating costs by $1.6 million and make further progress towards one of our ESG goals
Q4 2021 Select Financial and Operational Results
| Three months ended | ||||
| December 31, 2021 $ |
December 31, 2020 $ |
|||
| Product Sales | 8,814,293 | 5,756,749 | ||
| Excise Tax | (1,999,110 | ) | (982,261 | ) |
| Net revenue | 6,815,183 | 4,774,488 | ||
| Gross profit | 1,529,802 | (718,866 | ) | |
| Loss from continuing operations | (1,590,430 | ) | (4,805,606 | ) |
| Adjusted EBITDA3 | (570,480 | ) | (2,958,525 | ) |
| Cash and cash equivalents | 11,583,443 | 12,136,459 | ||
| Working capital | 20,236,272 | 4,166,180 | ||
In Q4 2021, Rubicon Organics earned $6.8 million of net revenue, an increase of 43%, or $2.0 million, relative to Q4 2020. The increase in net revenue is attributable to continued growth of the Company’s flagship Simply BareTM Organic brand, and the launch of 1964 Supply CoTM and Homestead Cannabis SupplyTM into large provinces during 2021.
The Company reported an improvement to Adjusted EBITDA of $2.4 million with a loss of $0.6 million in Q4 2021, as compared to a loss of $3.0 million for Q4 2020. Rubicon improved its profitability by driving higher net revenue through the launch of its two new brands nationally. This increase to net revenue resulted in higher utilization rates allowing for increased operating leverage over the companies fixed cost base. Together these results drove a contribution of $1.5 million of gross profit before fair value changes. Furthermore, the Company began realizing the benefits on operating costs of the Company’s previously announced restructuring.
The Company reported a loss from continuing operations of $1.6 million in Q4 2021, as compared to $4.8 million in Q4 2020. The significant improvement in profitability reflects the factors impacting Adjusted EBITDA described above as well as other non-cash adjustments.
Q4 2021 Annual Results of Operations
| Year Ended | ||||
| December 31, 2021 $ |
December 31, 2020 $ |
|||
| Net revenue | 22,611,804 | 9,387,320 | ||
| Production costs | 9,155,425 | 8,051,854 | ||
| Inventory expensed to cost of sales | 9,500,187 | 3,967,624 | ||
| Inventory written off or provided for | 1,651,258 | 1,394,363 | ||
| Gross profit before fair value adjustments | 2,304,934 | (4,026,521 | ) | |
| Fair value adjustments to cannabis plants, inventory sold, and other charges | (798,047 | |||
Full story available on Benzinga.com
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