The Valens Company hits 1.4 million products made
Published on April 16, 2021 by oz. staff
The Valens Company released its Q1 2021 earnings report.
Highlights from the news release include:
- Gross revenue increased 21.4% in Q1 2021 to $21.8 million compared to $17.9 million in Q4 2020
- Product sales increased 23.3% to $17.9 million in Q1 2021 from $14.5 million Q4 2020
- Manufactured approximately 1.4 million units of finished goods over the twelve months ended Feb. 28, 2021
- Estimated share of the extract-based market increased to ~5.5% in Alberta, British Columbia and Ontario in Q1 2021 from ~4.9% in Q4 2020, based on Headset data and not including B2B LP manufacturing
- Continued to entrench the Company’s position as the largest third party vape manufacturer in Canada
- Manufactured and distributed the second best-selling vape SKU, Verse Cannabis’ Tropic Lemon 1.0g vape cartridge, across Alberta, British Columbia, and Ontario during Q1 2021, according to Headset data
- Ended the quarter with a strong cash position of ~$49.3 million
“Despite a slowdown in Canadian cannabis sales early in the year as a result of storefront restrictions and provincial inventory management due to the pandemic, we had strong sales growth with provincial sales increasing quarter over quarter. We expect to grow our provincial sales through fiscal 2021 as we continue to manufacture winning SKUs across all Cannabis 2.0 categories, including the newly-entered edibles and topicals segments, and an evolving portfolio of Cannabis 3.0 products,” says CEO Tyler Robson
“With the addition of the LYF Facility and the GTA Facility nearing completion, our strengthened manufacturing platform allows us to efficiently launch new SKUs, increase our market share alongside our customers and provides the capacity for us to drive significant volumes of previously launched and trusted products that have continued to gain acclaim from consumers across the country.”
Valens also released an update on its strategic initiatives for 2021.
• Continued focus on US and other international markets, as broader legal and regulatory frameworks continue to evolve, and, with respect to certain cannabis products, subject to legalization at the federal level and dependent on the requirements of the TSX. The Company is currently in advanced discussions with respect to a number of global expansion initiatives, including increasing its existing international shipments with receipt of EU GMP certification on track for year-end.
• Closed LYF Food Technologies (“LYF”) Acquisition and accelerated Valens’ entry into the edibles market, increasing its edible product portfolio and market share with collective capabilities to produce innovative gummies, chocolates, and baked goods. Since completing the acquisition, The Valens Company has launched soft chews in partnership with Verse Cannabis and has since completed repeat shipments of the products to Alberta, Ontario, and British Columbia, in addition to launching Summit soft chews alongside partner A1 Cannabis in Ontario and manufacturing and shipping edible products with other existing LYF customers.
• Entered the topicals category with the launch of nūance CBD bath bombs, complementing the brand’s existing lineup of premium wellness products. Valens expects to lead the wellness category in Canada with the launch of additional products under the nūance product offering in the coming quarters, including balm, menthol rub, soft chews, honey, and a variety of bath bombs.
• Expanded domestic distribution network to Manitoba, increasing Valens’ ability to capture increased market share in Canada with the ability to now sell products in five provinces. Near-term entry into the remaining Canadian provinces and territories, including Quebec, is expected imminently as discussions continue with provincial and territorial boards and private retailers.
• Increased share of the extract-based market in Alberta, British Columbia, and Ontario to an estimated ~5.5% in Q1 2021 from ~4.9% in Q4 2020, based on Headset data and not including B2B LP manufacturing. Subsequent to the quarter, Valens announced that it will be distributing select products from its partner Verse Cannabis to the Medical Cannabis by Shoppers platform, which is expected to increase both the brand’s national exposure and market share capture.
• Entered into extraction and custom manufacturing agreements with leading Canadian licensed producers. Subsequent to the quarter, Valens entered into an extraction and custom manufacturing agreement with Rubicon Organics, where it will leverage itsfull complement of proprietary extraction capabilities, including organic certified CO2, ethanol, and other extraction technologies, to deliver customized consumer experiences in a variety of 2.0 products under the LP’s product portfolio. Additionally, Valens entered into a custom manufacturing agreement with Experion Biotechnologies Inc. to provide end-to-end pre-roll manufacturing services and product distribution services, with continued discussions to expand the existing agreement to include additional product development and manufacturing services for a range of next generation products.
Here’s the full release.