The Flowr Corporation sees second quarter revenue rise driven by jump in cannabis sales

The Flowr Corporation (CVE:FLWR) (OTCMKTS:FLWPF) has reported higher revenues in the second quarter of its current year following a jump in sales and its harvest of dried cannabis.

For the quarter ended June 30, the cannabis cultivator reported net revenues of $2.3 million, a 6% increase on the same period a year ago, while the company’s adjusted (EBITDA) loss was $2.9 million, a $4 million improvement from the first quarter of 2020.

READ: The Flowr Corporation receives second round of funds from its C$3 million agreement with Terrace Global to fund Aljustrel outdoor cannabis facility

The company sold 419 kilograms of dried cannabis in the quarter, 23% higher year-on-year (YOY), with 345 kilograms of the sold product consisting of the firm’s flagship BC Pink Kush product.

Cannabis harvests also jumped 193% YOY to 1,346 kilograms as all the firm’s grow rooms in its facility were utilized after being fully licensed by Health Canada in February.

Flowr also said that in partnership with Terrace Global Inc (TSX-V:TRCE) the two firms have been advancing operations in Europe and continued to be on track for harvesting what it said was “the largest outdoor [tetrahydrocannabinol (THC)] cultivation project in the EU] in the fourth quarter of 2020.

The company added that it also recently received approval of its Autorite des marches public (AMP) application to operate in the province of Quebec and expects to be in the market with product by the fourth quarter.

Flowr also reiterated its objective to become cash flow positive in the second half of 2020 despite uncertainty caused by the coronavirus, with net revenue in the third quarter expected to be at least 30% higher than the second.

“We made progress against our key strategic and financial objectives in the second quarter of 2020. Sales momentum in our flagship BC Pink Kush continues to build,” Flowr Corporation CEO Vinay Tolia said in a statement.

“We have leading market share in Ontario which is evidence that there is strong consumer demand for premium dried flower despite the increasing proliferation of value brands in the sector. We are very excited by the progress we are making with our partners at Terrace Global in Portugal and continue to expect a sizeable harvest in Q4 2020 in what we believe is the largest outdoor THC cultivation project in Europe to date,” he added.

The Flowr boss added that given the sales trends in the company’s Canadian business it continued to believe it would become “cash flow positive in the second half of 2020.”

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Story by ProactiveInvestors