Replies to post #3219 on Aleafia Health Inc. (ALEAF)

[FUNMAN]

A 53% Increase in Cannabis Net Revenue on Aleafia Health (OTCMKTS: ALEAF)’s Q2 2021 Financial Results Demonstrates the Success of its Expanded Product Portfolio

By Neha Gupta
AUG 25, 2021

https://gentrybusinessleader.com/a-53-increase-in-cannabis-net-revenue-on-aleafia-health-otcmkts-aleafs-q2-2021-financial-results-demonstrates-the-success-of-its-expanded-product-portfolio/

Gaining access to Europe’s legal cannabis market was the most remarkable breakthrough for Aleafia Health (OTCMKTS: ALEAF). It was one of the many activities that contributed to the company’s Q2 2021 financial results.

The most significant shift was a 53% increase of cannabis net revenue from the previous quarter ending at $9.6 million. Increased sales of cannabis across the adult-use, medical and bulk wholesale sales channels played a crucial role in putting together the revenue.

Medical cannabis achieved a $3.3 million net revenue for Q2 2021, a 23% increase over the previous quarter. Adult-use cannabis revenue was at $3.2 million, translating to an 87% increase over the last quarter, while cannabis bulk wholesale sales brought home $3.1 million, compared to $1.9 million previously.

IMO, not to be overlooked is the fact that Aleafia's previous Q was awful. Beating those numbers was easy.

To put Aleafia in perspective, the tiny nugget of an edible company, Indiva (also an LP), posted their ER yesterday. With similar revenues they are EBITDA profitable, almost net profitable, and they are the edible category leader in Canada.

Aleafia is frustrating me. Revenues fluctuate with the harvest. They need to boost their brands. KinSlips should be a homerun.

IMO Aleafia has to step up its social media presence.

This article reads as if Aleafia is the best LP. That people should be plowing investments into it.

There is no disclosure telling us whether or not it is a "paid-for" article.

Have I over-loved this company?

Please, just show me consistent QoQ revenue and net profit growth. I will turn into a believer again. - FUNMAN

The Exclusive Milestones that Contributed to the Revenue Growth

Medical and adult-use cannabis markets had a significant landslide in their gross margins despite widespread competition and compression. Low-cost cultivation and high-quality cannabis derivative formats were the twin pillars, which occasioned a higher revenue achievement than other Canadian licensed producers.

Aleafia Health has exclusive cannabis wellness products, dried flowers, and a pre-roll portfolio being newly launched. Additionally, the company completed planting across 86 acres outdoors, a move expected to boost bulk wholesale revenue later in the year.

Expressing the company’s excitement, the CEO Geoffrey Benic added, “…Gaining access to the German medical cannabis market marks an important milestone that, with continued successful shipments, can contribute revenue growth and gross margin expansion….”

The Launch of a CBD Freshly Minted Roll-on

Benic says they are still in tow of bringing high-margin cannabis products to market. To capitalize on their efforts, the company has launched a perfectly positioned product for cannabis connoisseurs; the Freshly Minted Roll-on. The peppermint-scented product offers a “soothing, aromatic experience.” Thanks to its blend of essential oils, including lavender, vetiver peppermint, and eucalyptus.

It is the first product, which falls under the company’s Noon & Night brand, featuring Lavender Fizz Bath Bombs and Omega CBD Soft Gels.

[happyglass]

I think they are shoring up their supply line for when the Union deal starts generating patients (and revenues) they may have to buy from other growers to meet demand until they have a full idea of uptake. They saw all the “big guys” get saddled with redundant assets so I would rather see them buy wholesale for a bit and tweak their supply line as needed. Total guess here but that is what I would do in their place.