The company cut expenses by 25% and shaved down most of its employees since last year.
PharmaCielo Ltd. (TSXV: PCLO) (OTCQX: PCLOF) reported its financial results for the second quarter ending June 30, showing little revenue against a larger net loss.
The Canadian parent company of Colombian cannabis cultivator and extracts maker PharmaCielo Colombia Holdings S.A.S. reported revenue of $160,000 during the quarter, a significant fall from the $2.1 million reported in the same period last year.
Adjusted EBIDTA increased to a $2.1 million loss from last year’s $1.8 million loss. The net loss for the quarter was $3.58 million, slightly more than the $3.51 million reported in the same period last year.
Despite the disappointing financial results, Marc Lustig, chairman and CEO, remains optimistic about the company’s future.
“Our sales and finance teams have made measurable progress, and I expect these efforts to continue to pay off over the next several quarters,” he said in a statement.
Lustig said that the company is getting more opportunities with large global customers “than ever before as weaker players exit the market or fail to deliver the quality and consistency required.” He believes that the ongoing initiatives will result in meaningful growth in the top line, cash flow, and growth in shareholder value.
The company said it continues to make progress with new and existing customers, as indicated by its first shipment to its third Brazilian customer expected in the fourth quarter of 2023 and ongoing shipments of THC-dominant dried flower to a customer in Germany.
The company also said it successfully reduced its overhead expenses by 25% compared to 2022 levels, resulting in the number of employees decreasing from 450 in 2021 to 132, without impacting the ability to execute on existing and new contracts.
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