Gaining access to Europe’s legal cannabis market was the most remarkable breakthrough for Aleafia Health (OTCMKTS: ALEAF). It was one of the many activities that contributed to the company’s Q2 2021 financial results. The most significant shift was a 53% increase of cannabis net revenue from the previous quarter ending at $9.6 million. Increased sales of cannabis across the adult-use, medical and bulk wholesale sales channels played a crucial role in putting together the revenue.
Medical cannabis achieved a $3.3 million net revenue for Q2 2021, a 23%increase over the previous quarter. Adult-use cannabis revenue was at $3.2 million, translating to an 87% increase over the last quarter, while cannabis bulk wholesale sales brought home $3.1 million, compared to $1.9 million previously.
The Exclusive Milestones that Contributed to the Revenue Growth
Medical and adult-use cannabis markets had a significant landslide in their gross margins despite widespread competition and compression. Low-cost cultivation and high-quality cannabis derivative formats were the twin pillars, which occasioned a higher revenue achievement than other Canadian licensed producers.
Aleafia Health has exclusive cannabis wellness products, dried flowers, and a pre-roll portfolio being newly launched. Additionally, the company completed planting across 86 acres outdoors, a move expected to boost bulk wholesale revenue later in the year.
Expressing the company’s excitement, the CEO Geoffrey Benic added, “…Gaining access to the German medical cannabis market marks an important milestone that, with continued successful shipments, can contribute revenue growth and gross margin expansion….”
The Launch of a CBD Freshly Minted Roll-on
Benic says they are still in tow of bringing high-margin cannabis products to market. To capitalize on their efforts, the company has launched a perfectly positioned product for cannabis connoisseurs; the Freshly Minted Roll-on. The peppermint-scented product offers a “soothing, aromatic experience.” Thanks to its blend of essential oils, including lavender, vetiver peppermint, and eucalyptus.
It is the first product, which falls under the company’s Noon & Night brand, featuring Lavender Fizz Bath Bombs and Omega CBD Soft Gels.