CBD-based pharmaceutical company MediPharm Labs Corp. (TSX:LABS) (OTCQB:MEDIF) (FSE: MLZ) announced its third quarter financial results Thursday for the three months ended Sept. 30, 2024.

Q3 Financial Highlights

• Net revenue totaled CA$9.8 million ($7 million), representing a 15% increase year-over-year, with international medical cannabis sales growing 37% over the same period, accounting for 36% of total revenue.
• Gross margin improved to 32% from 29% in the prior year's period, driven by cost reductions, production efficiencies, and a favorable product mix.
• Adjusted EBITDA came in negative at $743 000, compared to a larger adjusted EBITDA loss of $2.4 million in the prior year's period.
• Total comprehensive loss for the period totaled CA$2.7 million, down from CA$4.2 million in the prior year's period.
• MediPharm said it has fully paid off its CA$2.2 million convertible debt in the third quarter of 2024, making the company without any material debt and fully owning its production facilities.
• At the end of the quarter, the company had CA$13 million in cash.

“Q3 2024 was a major step in the right direction towards profitability," said CFO Greg Hunter. "Paying off our debt and rationalizing facilities, pursuing cost efficiencies while growing our higher margin international revenues are all critical elements to position us for long-term sustainable growth."

Read Also: MediPharm Q2 Loss Narrows, Adjusted EBITDA Climbs As Gross Profit Improves Nearly 300% YoY

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International Expansion

MediPharm saw growth, with Beacon branded flower sales increasing in Germany and Australia.

During the quarter the company launched 11 new SKUs, including live resin GMP vapes for the Australian medical market.

The company said its Canadian cannabis clinic business, Harvest Medicine, was profitable.

It is positioned for continued international expansion, with late-stage regulatory registrations in the UK, Brazil and New Zealand, as well as early to mid-stage regulatory registrations that include France, Spain, Poland and Switzerland.

"As a global GMP player, our international sales grew 37% vs. Q3 2023, resulting in over 35% of revenue coming from outside Canada," David Pidduck, the company's CEO, said.

MEDIF Price Action

MediPharm's shares traded 6% higher at $0.053 per share after the market close on Wednesday afternoon.

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