True Leaf Brands Inc (CSE:MJ) reported a 70% growth in revenue compared to the previous quarter in its Pet division during its fiscal second-quarter 2020, according to its latest results released Monday.
The cannabis for pets company recently launched CBD supplements for dogs and rolled out the products to retail stores in the US and online.
Total revenue from True Leaf’s Pet division was C$707,000, a 24% increase year-over-year.
READ: True Leaf wins three licenses from Health Canada to cultivate, process and sell medical cannabis
CEO Darcy Bomford said the quarter was the strongest in the Vernon, British Columbia-based company’s history.
“This record quarter is a result of the successful roll-out of our new and expanded natural pet care product lines, our investments into building our team, and success in streamlining global operations,” Bomford said in a statement Monday.
“Continuing to execute on our global growth plans has allowed us to meet the high demand for our products in key markets like Europe.”
Lincensed in Lumby
The company’s Cannabis division recently became a licensed producer after securing three licenses from Health Canada for its True Leaf Campus facility in Lumby, British Columbia. The licenses allow True Leaf to begin cultivating, processing and selling medical cannabis from its facility immediately and to produce alternative cannabis products such as edibles, topicals, and capsules.
The Lumby facility will create new opportunities for the company in the Cannabis 2.0 market in Canada as well as Europe, Bomford told shareholders.
Bomford also said that the company is actively seeking a joint venture partner to purchase a portion of the True Leaf Campus asset, allowing it to lock in a supply of CBD for its pet products and secure a return on investment.
During the three-month period ended September 30, the company recorded a net loss of C$1.8 million or C$0.02 per share.
The firm has made several strategic business decisions to improve cash flows and reallocate capital to ensure the long-term growth of the company, Bomford said. “Cost-saving measures have been made across both divisions; we expect to realize savings immediately and improve upon them going forward.”
True Leaf also said that it is welcoming a new finance chief in Darren Battersby, who brings a wealth of experience working with start-up and growth companies. Battersby is succeeding outgoing chief financial officer Kerry Biggs, who stepped down on November 30 to pursue other opportunities.
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