Company building scale in natural health and sterile ophthalmic products
LSL Pharma Group Inc. ("the Company" or "LSL Pharma Group") (TSX-V: LSL), a Canadian integrated pharmaceutical company, has announced its financial results for the third quarter ended September 30, 2023. The Company's MD&A and unaudited consolidated financial statements are available on SEDAR+. Unless otherwise indicated, all amounts are expressed in Canadian dollars.
"LSL Pharma Group has made solid progress since the start of the year, with both subsidiaries contributing to its improved financial and operating performance," said François Roberge, President and CEO of LSL Pharma Group. "The acceleration of production at LSL Laboratories ("LSL") is progressing according to plan, following the move to new facilities in La Pocatière earlier this year. We have also completed optimization measures at the Steri-Med Pharma ("Steri-Med") plant, with a view to increase its production capacity by early 2024 to meet growing demand for our products."
For the third quarter ended September 30, 2023, LSL Pharma Group recorded revenues of $2.5M, down slightly from $2.6M for the same period last year, but up 24% sequentially from $2.0M in the last two quarters of the current fiscal year.
The year-over-year variation reflects the gradual resumption of LSL's activities following the transition to its new manufacturing plant, as well as an extended summer shutdown at the Steri-Med plant to improve production flow and optimize equipment and production facilities. In addition, the sequential increase largely reflects the impact of the new LSL plant, as well as the effectiveness of measures implemented in previous periods.
Adjusted EBITDA, which excludes non-recurring items, amounted to $0.1M, compared with a loss of $0.9 million a year earlier. This marked improvement is mainly attributable to the increase in gross profit, which totalled $0.5M compared with a loss of $13,000 last year, and to a significant reduction of administrative expenses of over 25%.
The net loss for the third quarter was $0.8M, or $0.01 per share, a 47% improvement over last year's net loss of $1.5M, or $0.02 per share.
"The coming quarters look promising, as we take advantage of increased production capacity at each of our subsidiaries. Starting with the fourth quarter of 2023 and into 2024, we'll be taking advantage of the new agreements unveiled last October. Initially, Steri-Med will supply sterile ophthalmic ointment for the treatment of newborns in US hospitals under an exclusive agreement with US specialty pharmaceutical company Fera Pharmaceuticals, LLC. In addition, LSL will begin deliveries against new purchase orders for natural health products, the value of which could exceed $2.6M on an annual basis. Finally, we are pursuing our efforts to make strategic acquisitions that will enable us to further expand our product range and customer base," concluded Mr. Roberge.
ABOUT LSL PHARMA INC.
LSL Pharma Group is an integrated Canadian pharmaceutical company specializing in the development, manufacture and distribution of high-quality natural health products and dietary supplements in solid dosage forms, as well as high-quality sterile ophthalmic pharmaceuticals.
Source: LSL Pharma Group