MTL Cannabis Corp. (CSE: MTLC) reported a new slate of financials for the quarter and half-year ending Sept. 30, following a reverse takeover involving Canada House Cannabis Group Inc. in July.
The newly merged Canadian outfit, which previously went by Montréal Cannabis Médical Inc., posted a 366% increase in revenue, reaching C$23.15 million, compared to C$4.96 million in the same quarter of the previous year.
Net revenue also saw a significant rise, standing at C$19 million for the quarter, up from C$3.89 million in the corresponding quarter of 2022. Additionally, the company reported a gross profit of C$6.3 million, versus C$1.25 million in the same quarter last year.
“Our focus on quality and dedication to providing the best products and services to our recreational customers and medical patients has been the foundation for our business, and we are seeing that focus being reflected in our financial results,” CEO Michael Perron said in a statement.
Operating income turned positive, reaching C$843,359, a notable improvement from a loss of C$91,811 in the same period last year. Net income followed a similar trend, with the company reporting C$1.99 million, a reversal from a loss of C$604,314 in the previous year’s quarter.
The company’s cash flow statements also reflected the positive changes. Net cash inflows from operating activities amounted to C$7.3 million, versus a net outflow of C$1.97 million in the same period last year. However, the company used C$162,255 in investing activities and C$4.64 million in financing activities during the quarter.
For the first six months of 2023, MTL’s revenue surged to C$40 million, a 238% increase from the same period last year. The company’s gross profit and operating income for this period were also on the rise, standing at C$9.57 million and C$1.44 million, respectively.
“The results represent an incredible effort from our team, and we look forward to the continued integration of our business units, expansion activities at all our production locations, and leveraging cash flows from operations to accelerate our growth and further improve our balance sheet,” said Richard Clement, chair of the board.
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