(BBRRF) – Blueberries Medical Q2 revenue grows 169%, what about net loss?
Blueberries Medical Corp. BBRRF BBM (FRA:1OA) released its financial results for the quarter ended June 30, 2022, revealing total revenues of CA$39,826an increase of CA$25,041 (or 169%) compared to Q2 2021.
Q2 2022 Financial Highlights
The gross margin, excluding direct production costin mining services is approximately 11%.
Gross profit was a loss of CA$75,475 compared to a loss of CA$88,021 in Q2 2021.
The net loss was CA$511,717 compared to a net loss of CA$269,067 in Q2 2021
The company has pivoted its core business from cultivation to extraction services, and identified a niche in the export market for isolated products to Latin American countries. To date, the company has successfully exported isolated products to Argentina. “As a result, aligning with the company’s strategy, the company began to increase its commercial revenue, adding more end products and services to other cannabis companies in Colombia and Latin America ( Latam),” said Garreton FactorCEO and President of Blueberries Medical Corp.
New Colombian regulations
On February 18, 2022, the Colombian government issued Resolution 227/2022 which improved conditions for licensees, including extending the term of licenses from 5 to 10 years and making it easier to apply for THC quotas. This resolution also regulated the use of the non-psychoactive cannabis plant and its derivatives in foods, beverages, alcoholic beverages and dietary supplements. In this same direction, on April 1, 2022, the Colombian government issued Resolution 539/2022 which regulates Decree 811 of 2021 in all aspects related to the export of seeds for sowing, cereals, plant components, cannabis plants, cannabis, cannabis derivatives and related products, thus allowing the export of dried flowers for medical and scientific purposes.
In anticipation of these regulatory opportunities, in mid-2021 the company launched specific plans to:
Be ready to export premium THC with GACP CUMSC/IMC certification using a third-party grower agreement template with one of Colombia’s largest flower processors;
Started development of multiple, high-value, non-psychoactive ingredients for food and beverages, including specialties for chocolate and fully translucent water-soluble CBD powder for beverages and other uses.
Blueberries expects these new opportunities enabled by updated regulations in Colombia to quickly translate into sales and revenue for the company, both locally and in developing markets, during the third quarter of 2022. .
The results for the first two quarters of 2022 are in line with management’s expectations based on the strategic decision taken for the last quarter of 2021.
The company has begun to increase its business revenue, expanding its business model to provide extraction services to other cannabis companies in Colombia. Along with the expected increase in revenue, the company will focus its spending on CAPEX and EUGMP certifications.
Photo: Benzinga; Sources: Courtesy of Kindel Media via Pexels
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