Emblem Corp (OTCPK:EMMBF) -a licensed producer of medical cannabis, continues to enhance trader’s confidence with its strong financial numbers. The company first-quarter revenue and earnings improved substantially from the year-ago period. This is due to the company’s strategy of expanding its cannabis oil business combined with continued growth from the sales of dried flowers.
Emblem Corp: First Quarter Results
Its revenue of $1.3 million in the first quarter increased 41% from the year-ago period. The company’s sale total of dried-flower to medical patients amounted to 52.8 kilograms. The total dried flower sold to licensed producers stood at around 71.1 kilograms.
In addition, revenue from cannabis oil came in at around $187,000 in the first quarter. Its cannabis oil revenue accounted for 29% of the total revenue. The company’s management is optimistic regarding its oil business in the following quarters.
Nick Dean, President & CEO of Emblem Corp said, “Our oils now represent close to one-third of our total patient sales. As we continue to introduce new dose-controlled formats and sizes to the market, we expect this trend will continue upward.”
Its gross margin rose 300% from the year-ago period, supported by higher revenue and better-unrealized gain on changes in fair value of biological assets.
The Outlook for the Rest of the Year
Emblem’s stable cash position has been allowing it to execute its growth plans. Its cash position stood at around $83.8 million at the end of the first quarter. The growth in cash position was due to the financing of $53.8 million in the latest quarter.
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The company expects to enhance its annual production capacity to 17,000kg to capitalize on increasing demand from medical and recreational markets. Emblem Corp has also been making investments in clinical research, pharmaceutical research, marketing, and promotion to sustain and expand its markets share in the rapidly growing cannabis industry.
Featured Image: Depositphotos/© merznatalia
