Nabis Holdings sees 2Q top line revenue rise by 73% driven by its Arizona cannabis operations

Nabis Holdings Inc (CSE:NAB) (OTCMKTS:NABIF) (FRA:A2PL) posted second-quarter results on Tuesday that saw its top-line revenue jump by 73% on a sequential basis driven by its Arizona cannabis assets.

For the period ended June 30, 2020, the Canadian company that invests in multiple industries including cannabis, posted revenue of $4 million, compared to $2.3 million for the first quarter of 2020.

The group clocked up revenue of $6,294,736 for the six-month period ended on June 30, 2020, compared to no revenue in the same period in 2019.

READ: Nabis Holdings is building out a portfolio of revenue-generating cannabis assets

“We are very pleased with the progress our team has made at our Emerald dispensary, in Phoenix, Arizona,” Nabis Holdings CEO Mark Krytiuk said in the earnings statement.

Vancouver-based Nabis acquired the Arizona operations in October 2019 and set out to increase profitability and margins at the Emerald dispensary while improving patient experiences.

“Our results speak for themselves. Since October we have been able to double top line monthly revenue and our profit margins have seen double-digit increases. We expect to see further improvements as our Infusion Edibles line is fully relaunched. It is definitely an exciting time to be in cannabis in the state of Arizona,” added Krytiuk.

The company said that cost of goods sold for the second quarter amounted to $2,144,880, while gross profit was $1,842,897. The group sustained a basic and diluted loss per share of $0.02 during the quarter.

It shrunk its selling, general and administrative expenses to $1,805,685, a 86% decrease compared to $3,366,380 in the comparative three-month period in 2019. Nabis said the change was thanks to “significant decreases” in consulting, management, business development and investor relation fees.

“During the comparative periods, the company was incurring due diligence related costs to secure appropriate cannabis assets,” the company noted.

On the other hand, the costs for the second quarter came mainly from operating the dispensary in Phoenix, Arizona, as well as corporate costs supporting the company’s other cannabis assets.

As a cannabis investment company Nabis is creating a portfolio of vertically integrated multistate operations in the US and globally.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Story by ProactiveInvestors