Valens GroWorks Corp. (TSX: VGW) (OTC: VGWCF) reported third-quarter revenue of $16.5 million Tuesday, an 87.1% quarter-over-quarter jump.
The cannabis extraction company achieved positive adjusted EBITDA of $9.8 million in the quarter versus $2 million in the second quarter.
It posted net income of $5.9 million or 5 cents per share, a reversal from a net loss of $10.5 million or 10 cents per share in the prior quarter.
Valens' gross profit reached $12.8 million, or 77.8% of revenue, in the third quarter.
"The performance in the third quarter is a clear representation of Valens' commitment to quality, strategy and execution and is also driven by the continued ramp up in services with existing, industry-leading clients...as well as first-time revenues from new customers," CEO Tyler Robson told Benzinga. "There is so much noise in the industry right now, but we remain laser focused on executing on our strategy and continuing to deliver for our customers and partners, which we believe will create long term value for all of our stakeholders."
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Robson added, "We are extremely pleased with the rollout of our business plan and the continued scale up in the company's extraction operations which have allowed us to continue our aggressive quarter-over-quarter growth in volumes, revenue, adjusted EBITDA and net income... The company's performance in the third quarter clearly demonstrates our industry leading technical capabilities, the quality of our products and the earnings power of our platform."
The company's net income in the quarter has made it the most profitable company in the Canadian cannabis sector (excluding biological asset fair value adjustments), Robson said.
Valens also updated investors on milestones achieved during the quarter, such as entering a supply agreement with Shoppers Drug Mart and striking its first beverage agreement with Iconic Brewing to produce 2.5 million cannabis beverages over five years.
The stock was trading 1.21% higher at $2.50 at the time of publication.
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