HIGHLIGHTS
- Medical cannabis selling price averaged $7.48/g in 2018 vs $5.70 in 2017
- Vivo’s Q4 2018 recreational pot revenue at $3.2-million vs. medical at $2.8-million
- Recreation pot selling price averaged $7.54/g in Q4 2018
Licensed producer Vivo Cannabis Inc. joined other Canadian LPs in seeing a surge in 2018 revenue due to the legalization of recreational pot last October, while its medical marijuana selling price jumped by more than 30 per cent and accounted for more than half of its sales, its Management’s Discussion and Analysis report showed.
Its average selling price for pot in 2019, however, was expected to fall by more than $1 per gram.
In the fourth quarter of 2018, Vivo said it earned $3.2-million in revenue from the sale of medical cannabis versus $2.8-million from recreational sales and $700,000 from patient counselling.
Also in the October-December 2018 period, Vivo sold 382 kilograms of medical dried cannabis at an average selling price of $7.48 per gram, excluding the excise. This was up 31 per cent from $5.70 per gram in 2017 but down from an average of $7.82 for all of 2018.
Sales of recreational dried cannabis in the fourth quarter were slightly lower at nearly 342 kg at an average price of $7.54 per gram, before tax. Recreational pot was legalized on Oct. 17, 2018.
Vivo expected to harvest 636 kg from nearly 20,000 cannabis plants held at the end of 2018, more than six times the amount one year prior. The company said it expected yields to reach 32.3 grams per plant at an average selling price of $6.32 per gram. This compares with a cost of production at 24 cents per gram “to complete harvest up to the point of bulk.”
Financial results:
- Gross 2018 revenue at $13.3-million versus $1.2-million in 2017. Gross Q4 2018 revenue at $8.1-million versus $400,000 in Q4 2017.
- Net 2018 revenue at $9.7-million versus $900,000 in 2017. Net Q4 2018 revenue at $5.8-million versus $300,000 in Q4 2017.
- Cost of sales at $8-million in 2018 versus $2.7-million in 2017; $5.3-million in Q4 2018 versus $300,000 in Q4 2017.
Medical and adult-use cannabis sales in 2018:
- Ontario: Net revenue at $1.3-million but a net loss at $18.1-million.
- British Columbia: Net revenue at $6-million and a net income at $6.3-million.
- Patient clinics: Net revenue at $2.5-million but net loss at $200,000.
- Corporate: Net loss at $13-million.
- Total: Net revenue at $9.7-million but net loss at $25-million.
Vivo’s assets and liabilities:
- ABcann assets in Ontario at $2.5-million versus liabilities at $5.7-million.
- Canna Farms assets in B.C. at $13-million versus liabilities at $100,000.
- Total assets at $308.4-million versus liabilities at $86.7-million.