Sativa Wellness Group Inc. (AQSE:SWEL) has announced today its first quarterly profit in Q2 2021. The Company has filed the Financial Statements and Management’s Discussion and Analysis for Q2 June 2021 with exceptionally strong results which demonstrates the continued growth. All amounts unless stated otherwise are presented in British Pounds (GBP).
The Company has exceeded all targets set to meet its ambition of diversifying within the Wellness sector through the rollout of additional COVID testing clinics and as at the date of this announcement, the Company has 57 clinics in operation. The Company is actively looking at different tests to expand the clinic portfolio and opportunities to grow the testing business.
The Company has been pursuing growth opportunities in the CBD arena while continuing to produce quality isolate and distillate in Poland and a range of quality end products through its ‘Goodbody’ brand in the UK.
The UK Government Chemist team has published a report summarising the findings of a ring trial to assess laboratories performance in measuring CBD and controlled cannabinoids.
32 national and international laboratories participated in the ring trial. We are very proud that, based on the average reported scores PhytoVista, the Sativa Wellness Group ISO accredited laboratory, ranked 2nd out of 32 UK and international laboratories.
Q2 2021 Highlights compared to Q2 2020:
· Revenue 828% higher Q2 2021 vs comparative quarter 2020. Earned £3.48m revenue, £3.10m more than the equivalent period the previous year, making it the highest revenue quarter since inception, the second quarter in succession to exceed the turnover of previous quarters. The half year was up 563% with £4.86m revenue, £4.12m more than the equivalent period the previous year. The half year revenue already exceeds any previous full year.
· Gross profit 804% higher Q2 2021 vs comparative quarter 2020. £1.92m which is £1.70m more than the equivalent period the previous year. The gross profit percentage margin at 55.0% was in line with the previous year of 56.5%
· First net profit of £46k, compared to £1.43m loss in the same period the previous year. The resulting half year loss of £874K compared to £2.35m the previous year was a 63% improvement.
· First ever profit per share, 1.30 pence improvement. 0.01 pence profit compared to (1.29) pence loss in the same period the previous year.
· Phytovista Laboratories Granted ISO Accreditation, the Group UK Laboratory, Phytovista Laboratories was granted accreditation to ISO/IEC 17025:2017, General requirements for the competence of testing and calibration laboratories achieved ISO17025.
· Goodbody Botanicals was listed on the UK government website to offer 2 and 8-day quarantine tests for travellers returning to the UK, offering a significant opportunity for the COVID testing clinics.
· Two tranches of the Company’s non-brokered private placement were issued at a price of C$0.07875 per Unit of 45,888,730 Units for gross proceeds of C$3,613,737.49 and 12,701,557 Units for gross proceeds of C$1,000,247.61.
· The appointment of a new, highly experienced CEO – Marc Howells – to further support the business expansion programme.
· The appointment of a highly experienced CFO – Anne Tew – to the Board
Highlights Subsequent to Q2 2021:
· Announced the Group strategy to restructure the business into three strategic business units (SBU’s) to drive highly focussed activity and development. Each SBU has a clear business head and strategic plan supported by central resources:
o Goodbody Botanicals (SBU) – CBD. Manufacturing to Consumer range of ‘gold-standard’ CBD based products.
o Phytovista (SBU) – ISO Accredited, European Cannabinoid & Hemp testing facility.
o Goodbody Wellness (SBU) – Clinic Testing Services, Direct to consumer (B2C), and Direct to business services (B2B).
Geremy Thomas, Sativa Wellness Group Executive Chairman, says; “I am absolutely delighted by the fantastic revenues driven by strong growth following the changes made in Q1. The changes I laid out in my last announcements have started to impact the overall business performance and this profit is the result we have worked very hard to achieve. Cash flow remains strong and positive and the strengthened management team continue to focus on implementing the strategy laid out for the three business units to deliver even more success.”