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MediPharm Labs moves toward profitability

Published on April 18, 2025 by Pat Bulmer

Photo: Contributed

A medical marijuana extraction company is on the path to profitability.

“MediPharm significantly improved profitability in 2024, addressing cost structure and gross profit while simultaneously reducing operating expenses and substantially growing revenues,” the company said in a year-end financial statement.

“The company is in a strong cash position, is materially debt free, up to date on all cannabis excise duties and regulatory fees and currently has full unencumbered ownership of all production facilities,” the statement said.

“We are pleased with our progress towards profitability in 2024, driven by 80% growth in our international revenues,” said David Pidduck, CEO of MediPharm Labs.

International medical cannabis sales grew to $17.7 million in 2024, the company said.

The company’s earnings showed a loss of $1.9 million, “which improved $8.3M or 81% versus 2023,” the report said. “Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) continues to improve, driven by margin expansion initiatives and cost reductions,” the company said.

After the quarter ended, the company sold its production facility in Hope, B.C., to Rubicon Organics for $4.5 million. Work had already been moved to an existing facility in Barrie, Ont. “resulting in over $1 million in annualized savings.”

Rubicon said in its year-end financial statement that acquiring the Hope facility will expand its production capacity by 40%, or 4,500 kilograms. The deal is expected to close in the second quarter of this year.

Rubicon also has a facility in Delta with an annual production capacity of 11,000 kg, the company said.

Rubicon reported record net revenue of $48.7 million, an increase of 21% from 2023, and adjusted EBITDA of $4.0 million for the year.

“2024 marked another record year for Rubicon Organics growing 21% year-over-year, dramatically outpacing market growth,” said Margaret Brodie, CEO.

“Shifting market dynamics are driving a supply shortage in Canada, creating significant opportunities for established operators. At the same time, international markets are increasingly opening up to top Canadian producers,” she added.