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Rubicon Organics Inc. (OTCMKTS: ROMJF) Announces 124% YoY Growth In Revenue in Q3 2021 After Launching New Brands

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Rubicon Organics Inc. (OTCMKTS: ROMJF) has released its Q3 2021 results ending September 30, 2021, in which net revenue was up 54% relative to the second quarter of 2021.

Rubicon’s change in strategy yielding fruits 

CEO Jesse McConnell said, “Our record net revenue this quarter is a strong validation of our strategy to create an innovative portfolio of branded products, rooted in the production of high-quality organic cannabis. We can now also demonstrate that our lean manufacturing processes and financial discipline are able to generate significant contribution margin. With our brand portfolio, we have developed channels to utilize all of our production and we remain steadfast in our goal of driving industry leading profitability.”

The company reported net revenue of $7.1 million in Q3 2021, representing a 54% sequential increase and a 124% YoY increase. Interestingly, this revenue increase is attributable to product offering increase under the Simply Bare Organic brand, steady return of retail operations in Ontario, and Homestead Cannabis Supply and 1964 Supply Co launch.

Adjusted EBITDA in Q3 2021 was $0.6 Million

Rubicon narrowed its QoQ and YoY Adjusted EBITDA loss by $2.8 million from $3.4 million in Q2 2021 and $2.6 million in Q3 2021 to $0.6 million in Q3 2021. The improvement in profitability was a result of high net revenue following the launch of 1964 Supply Co and Homestead Cannabis Supply nationally during the third quarter. Interestingly net revenue increase was a result of high utilization rates permitting an increase in operating leverage over the foxed cost base. These factors combine contributed to 1.8 million in gross profit before fair value adjustments. Also, Rubicon started benefiting from its restructuring in terms of operating costs.

Over the course of the third quarter, the company maintained considerable market share in the organic and premium product categories through its Simply Bare Organic brand. The company believes that the combination of the new brand in major markets in Canada and increased offerings will enable it to leverage the momentum going into 2022.

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