Canadian cannabis company Aleafia Health reports job cuts in latest quarter

Ontario, Canada-headquartered cannabis company Aleafia Health said it cut its “full-time equivalent” staff headcount by 20% during the quarter ended Dec. 31 as part of a push to reduce expenses.

Forty full-time equivalent positions were cut during the quarter, according to information provided by Aleafia to MJBizDaily.

The layoffs at Aleafia are the latest example of an ongoing trend in the regulated cannabis industry, leading to recent job losses at Aleafia’s Canadian competitor Canopy Growth as well as U.S. marijuana companies such as Columbia Care, Curaleaf Holdings and Trulieve as well as ancillary firms including Dutchie, Leafly and WM Technology.

Aleafia slashed its “full-time equivalent headcount” by 36% over the course of 2022, a reduction of 89 jobs to 162 positions, according to a regulatory filing.

In its Monday earnings release, Aleafia proclaimed its second quarter in a row of positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a nonstandard accounting measure commonly used by marijuana companies.

Adjusted EBITDA was 446,000 Canadian dollars, or roughly $334,000.

However, Aleafia’s quarterly net loss was CA$25.1 million.

The company highlighted “9% growth in adult-use revenue over the previous quarter, despite an industry-wide market retraction.”

Aleafia reported adult-use marijuana market share of 2.1% for the quarter, citing HyFire point-of-sale data covering Alberta, British Columbia, Ontario and Saskatchewan.

In light of cost reductions and “the continued growth and popularity of our branded adult-use portfolio … we remain confident the company can reach our goals of scalable profitability while attaining a top 10 standing in our markets in the next fiscal year,” Aleafia CEO Tricia Symmes said in a statement.

Aleafia said its selling, general and administrative (SG&A) costs were down 44.5% compared to the same quarter in the previous year and down 51% on the basis of adjusted SG&A, which removes nonrecurring costs.

Total revenue was CA$14.8 million, up 23.1% from the same quarter a year before.

Shares of Aleafia trade as AH on the Toronto Stock Exchange and ALEAF on over-the-counter markets.

Source: https://mjbizdaily.com/canadian-cannabis-company-aleafia-health-reports-job-cuts-in-latest-quarter/