GTI beats market expectations with Q2 revenue of US$119.6M 

U.S. cannabis operator Green Thumb Industries released its second-quarter results late Wednesday, reporting a 167-per-cent increase in revenue to US$119.6 million, beating analyst expectations. GTI reported positive adjusted EBITDA of US$35.9 million in the quarter, which also beat expectations, while the company also reported a net loss of US$20.9 million. Echelon Capital Markets analyst Andrew Semple said in a note that GTI is one of the few cannabis operators generating operating cash-flow, and forecasts the company should generate US$523 million in revenue in its current fiscal year. 

Village Farms' Pure Sunfarms sees decline in Q2 revenue from lower selling prices

Village Farms International, which owns a controlling share in cannabis producer Pure Sunfarms, said its pot business made $12.9 million in net revenue in its second-quarter, down about 60 per cent from a year ago. Pure Sunfarms also posted a net profit of $1.1 million in the quarter, down from $17.3 million a year earlier. The company attributed the decline in revenue to lower 2020 average selling prices. While the pot producer recorded its seventh consecutive quarter of positive EBITDA, it also continued to grow cannabis at a substantially lower price than all other Canadian producers, according to Beacon Securities. Pure Sunfarms has about a 14-per-cent share of the Ontario recreational market, Beacon added.   

MediPharm Labs revenue declines in Q2 amid shifting business to white-labelling

Barrie, Ont.-based cannabis extractor MediPharm Labs recorded a steep plunge in revenue in its second quarter as the company shifted its business from bulk extraction for the country's pot producers to providing white-labelling services as well as supplying international markets. MediPharm reported a 56-per-cent decline in year-over-year revenue to $13.9 million, while also posting an adjusted EBITDA loss of $2.2 million. Canaccord Genuity analyst Matt Bottomley said in a note that the company is in the middle of a "transitionary year" and expects the latter part of 2020 to "be the inflection point for when the company will see its sales begin to pick up in its newer service offerings." 

TGOD shares down nearly 6% after Q2 results miss expectations

Shares of The Green Organic Dutchman fell by nearly six per cent on Thursday a day after the company released its second-quarter results. TGOD said it generated $4.8 million in revenue in the quarter, nearly split down the middle between its Canadian recreational business and its European hemp operations. That figure missed analyst expectations. TGOD still booked a $9.8-million loss, which was an improvement from its prior quarters, as the company continues to slash general and administrative costs. Despite the reduced cash burn and cost-cutting, BMO Capital Markets analyst Tamy Chen said in a note she anticipates TGOD will need more financing to fund operations with a sufficient buffer.​ 
 

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