Zenabis Global (TSX:ZENA) posted second quarter gross revenue of $26.5-million, an increase of 115%, from $12.3-million in the first quarter of 2019.
“We executed at or above plan in the second quarter and, in so doing, continued to make significant progress towards our goal of becoming one of the largest licensed producers of medical and adult-use recreational cannabis in Canada,” Andrew Grieve, CEO, said in a statement.
“Notably, the build out and completion of our growing facilities has progressed generally on time and on budget,” he added.
The completion of Zenabis Atholville and Zenabis Langley (Site A – Part 1) helped increase licensed annual production capacity to 54,000 kg of dried cannabis currently from 10,200 kg of dried cannabis at March 31, 2019.
“We are on track to achieve our new target of 143,200 kg of annual cannabis cultivation capacity under our existing capital program,” Mr. Grieve said.
He said Zenabis achieved meaningful growing process efficiencies during the quarter, “such that our dried cannabis output outperformed original design capacity by 35%.”
Citing the strength on the cultivation front, Mr. Grieve said the company is raising its cultivation capacity estimate for Zenabis Atholville by 12,000 kg a year, to 46,300 kg of dried cannabis from 34,300 kg.
“Given our increasing cultivation forecast profile, we expect to achieve meaningful quarter-over-quarter revenue growth through the remainder of the year,” Mr. Grieve said.
In the second half of 2019, the company expects to cultivate approximately 16,100 kg and 1,650 kg of dried cannabis from Zenabis Atholville and Zenabis Langley (Site A – Part 1), respectively.