A successful 2019 was reported for the Canadian food, medical and cannabis company EnWave; a year in which many important milestones were reached. This is also reflected in the strong figures for the last quarter and the full year of 2019. The Canadian company reported record sales of around $32.50 million (CA$42.84 million) in 2019 compared to around $17.31 million (CA$22.82 million) in 2018.
EnWave signed a total of 14 new commercial license agreements in 2019. Seven of them in cannabis and hemp, six in food and one in medicine.
Additonally, EnWave was also selected as a “Venture 50” company in the “Clean Technology and Life Sciences” category.
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Record quarterly returns for cannabis in Canada
Canadian companies reported record sales of around $32.50 million (CA$43 million) in 2019 compared to around $17.31 million ($CA23 million) in 2018. Quarterly returns for cannabis increased by almost $15.18 million (CA$21 million) or 88%.
The strong sales growth is due to the expanded distribution of “Moon Cheese” over the course of the year and the highest number of license agreements to date for “REV” machine contracts.
EnWave’s gross profit increased from around $6.75 million (CA$8.8 million) in 2018 to around $10.32 million (CA$13.55 million) in 2019. This corresponds to an increase of around $3.56 million (CA$4.7 million) or 53%. The gross margin was 32% in 2019 compared to 39% in 2018.
High investments fueling high quarterly returns for cannabis
A strategic investment by Aurora Cannabis Inc. in EnWave, with gross proceeds totaling more than $7.58 million (CA$10 million), was also completed to finance future growth and economically adapt the two companies’ international license agreements.
The balance sheet was strengthened with cash equivalents of around $14.15 million (CA$18.66 million) as of September 30, 2019. The debt-free company is thus solidly financed, which is a good starting position for possible financing of future growth.
Sales increase in 2019
The individual figures for the last quarter of 2019 are as follows. EnWave increased its sales in Q4-2019 to around $16.2 (CA$21.33 million) compared to around $5.56 million (CA$7.35 million) in the same accounting period of the previous year. As a result, this represents a solid increase of more than $6.69 million (CA$8.83 million) or 120%.
The increase in quarterly returns for cannabis is due to a strong dividend increase to Costco in the fourth quarter of 2019 for the Most Valuable Member (MVM) coupon program and the growth in the number of “REV” machines sold. With this result, the company achieved the highest quarterly sales in its history.
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First published in Vestors Capital, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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