Liberty Health Sciences Inc. (OTCQX: LHSIF) reported net sales of $50 million for the fiscal year 2020 ending February 29, 2020, versus $10 million for 2019. The company also delivered net income for the fiscal year 2020 of $22.2 million, which included the gain on the sale of a property of $14.2 million. The earnings per share reported were $0.06. This was an improvement over the net loss of $22 million for the fiscal year 2019. All figures are in Canadian dollars.
The company attributed the increase in revenue to the introduction of 200 new products the opening of new dispensaries, expanded delivery infrastructure, as well as an upsurge in same-store sales volume and an increase in the registered patient base for Medical Marijuana Use in Florida. The company also said that its expenses dropped from $25.5 million in 2019 to $25.1 million in 2020.
“End of year fiscal 2020 proved to be the highest net revenue increase in the Company’s history and reflects our customer loyalty and strength of our brand,” said Victor Mancebo, Chief Executive Officer of Liberty. “Liberty’s continued growth directly ties to the strategic initiatives we have set in place, which has been increasing our Florida production, retail base, and delivery footprint along with expanding our product portfolio and brand partnerships. We continue to work on innovative strategies that complement our expansion plans while at the same time provide our patients a more accessible medicine platform.”
Liberty currently operates 25 dispensaries throughout Florida and has lease agreements in place for 10 additional locations and is negotiating for another ten locations. The company said it has implemented health and safety measures for employees, patients and facilities following guidance from public health officials worldwide in response to the COVID-19 pandemic to ensure adequate in-store product supply and customer convenience due to increased demand.
The latest location opened this month in Stuart Florida with a 5,000 square foot dispensary featuring a spacious display and retail area, two private consultation rooms, and one large waiting. Locally inspired wall-art will be featured throughout the store on a rotating basis.
“We are excited to open our doors to new friends and patients in our first dispensary to be situated in Martin County ,” said Mancebo. “We are thrilled to expand our dispensary footprint along Florida’s Treasure Coast during these trying times and have remained committed to ensure our patients safe and reliable access to our premium products. We continue to take steps to keep our employees and our patients safe as the state continues to reopen.”
As of February 29, 2020, Liberty had $24,957,245 of cash and cash equivalents compared to $13,291,426 in cash and cash equivalents at February 28, 2019.
The cultivation production capacity of the company is currently approximately 19,500 kilograms annually (dry weight), and the Company made further investments in fiscal 2020 to increase its plant yield, targeting an increase of production of approximately 25% by first quarter of 2021. Retrofit activities associated with processing continued through the fourth quarter of fiscal 2020, adding additional drying rooms.