August 31, 2020| Yahoo Finance
In the first half of 2020, the company exceeded its full-year revenues in 2019 with record revenues of 26.9 million, over four times the first half of last year.
Boasts 11 consecutive quarters of growth with record revenues of 14.8 million in the second quarter of 2020.
Switched from gross loss of 1.8 million in the second half of 2019 to gross profit of 1.6 million in the first half of 2020.
Increased gross profit by 195% over the first quarter of 2020.
The Israeli subsidiary of Panaxia Global, Panaxia Labs Israel Ltd. (Panaxia Israel) (TASE: PNAX), the largest manufacturer of medical cannabis products in Israel, today reported the financial results for the second quarter and first half of 2020.
Dr. Dadi Segal, CEO of Panaxia Global, said, “The past six months have been the strongest in the company’s history, featuring the highest revenues in the sector, reflecting a growth rate of over four times over last year. Concurrently, the company continued to improve the gross profitability and reducing the bottom line losses, most of which are due to our massive preparations to export to Europe. The expanded activity in the first half of 2020 results mainly from increased demand for our quality products on behalf of Israeli patients and from the rapid evolution of the direct supply to the home model.
“The EU-GMP certification received last June from the EU authorities positions us at the forefront of the global cannabis industry alongside a host of international companies. Panaxia is currently the only cannabis company in Israel awarded with the prestigious EU-GMP certification. This development brings us closer to the important phase of initial export and sales to Europe by the end of 2020.”
Financial results for the second quarter and first half of 2020:
The company’s revenues in the second quarter of 2020 totaled a record of 14.8 million, an increase of 374%, more than four times revenues of 3.1 million in the same period of last year, and a 21%-increase over 12.2 million in the first quarter of 2020. The revenues reflect the growth of 11 consecutive quarters.
The company’s revenues in the first half of 2020 totaled 26.9 million, an increase of 370% or over four times the revenues of 5.7 million in the same period of last year, and 145% over 11 million in the second half of 2019.
The revenue growth is attributed to the growing business operations, which includes more patients as well as larger quantities of products manufactured and delivered by the company to patients’ homes as part of its home delivery service. In addition, the transition to sales under the new regulation provides the company with higher revenue per product unit.
The gross profit in the second quarter of 2020, under the new regulation, totaled 1.2 million, an increase of 195% compared with gross profit of 413 thousand in the previous quarter, and gross loss, under the previous regulation of 389 thousand in the same quarter of last year.
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