Another Canadian cannabis company is reporting a profitable quarter. Extraction specialist, Valens GroWorks (CAN:VGW / US:VGWCF) today reported record results for Q3 2019, in line with previously released guidance on September 10, 2019.
Valens announced record revenues of CAD$16.5 million, Adjusted EBITDA of CAD$9.8 million, and net income of CAD$5.9 million. Revenue increased by 87.1% from the previous quarter and 641.4% year-over-year.
Adjusted EBITDA rose to $9.8 million and 59.4% of revenues, compared to Adjusted EBITDA of $2.0 million (23% of revenues) from the previous quarter.
Gross profit increased to $12.8 million, 77.8% of revenue. This compares to gross profit of $5.1 million from Q2, representing 57.9% of revenue.
Net income of $5.9 million in Q3 compares to a net loss of $10.5 million for the second quarter. In short, Valens is steadily building its revenue base while fully preserving its strong margins.
As an extraction specialist in Canada’s nationally legalized market for cannabis, Valens is able to service the entire Canadian cannabis industry. It is currently Canada’s largest third-party extraction provider, with annual processing capacity of 425,000 kg’s of dried cannabis.
The company has $69.2 million in cash and cash equivalents.
As of this writing, Valens is up 1.52% on the day to CAD$3.33. This builds on yesterday’s gain of more than 17%, in anticipation of today’s news.
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