Numinus Wellness Inc. Sees Revenue Soar 240% in Q2 on Strong Wellness Clinic Acquisitions

Numinus Wellness Inc. (TSX-V: NUMI, OTC: LKYSF) released financial results for the second quarter of fiscal 2022 that saw revenue jump 240% year-over-year, mainly thanks to its strong acquisitions over the last 12 months.

For the three-month period ended Feb. 28, 2022, the Vancouver, B.C.-based mental health care company advancing innovative treatments and psychedelic-assisted therapies reported revenue of 0.8 million bucks.

Numinus attributed the rise in revenue to the acquisitions of Mindspace and the Toronto Neurology Center. Sequentially, revenue was consistent with the prior quarter, representing periods of increased client appointments, alongside the seasonally slower period during the December holidays, the company said.

READ: Numinus Wellness reaches agreement to acquire US psychedelic healthcare company Novamind for C$26.2 million

The company’s gross margin increased to 29.1% in Q2 2022 from 6.5% in Q1 2022 and minus 25.7% in Q2 2021. Numinus noted that the “significant improvement” in gross margin gross is mainly due to a greater proportion of higher margin services. be booked at Numinus Wellness Clinics.

Numinus recorded gross profit of $228,759 in Q2, up 349% from gross loss of $59,724 in Q2 2021.

For fiscal 2Q 2022, the company reported a loss of $7.8 million, compared to a loss of $4.2 million in 2Q 2021.

The company had a strong cash balance of $48.3 million as of February 28, 2022.

“Numinus’ fiscal second quarter demonstrated the strength of our growing service offering and the efficiency of our operating platform, with gross margin improving to 29.1% in the second quarter of 2022, versus 6.5% in the prior quarter,” said Numinus Wellness founding CEO Payton Nyquvest. in a report.

“Most of this improvement is due to the successful integration of the Toronto Neurology Center – an acquisition we completed last quarter, and the expansion of ketamine-assisted therapy services across our network of clinics” , he added.

Meanwhile, Nyquvest noted that the company is “looking forward” to its recently announced proposed acquisition of Novamind.

“This will be transformational for Numinus as we establish a strong presence in the United States with eight revenue-generating clinics located in Utah and Arizona. It also provides two additional clinical research sites and a strong portfolio of clinical research activities, which will significantly expand Numinus’ contract research capabilities,” added Nyquvest. “We are very excited about the opportunities ahead as we firmly establish the Numinus brand and our comprehensive combined mental health and wellness offering in the United States.”

During the quarter, clients booked 5,320 appointments through Numinus Clinics, which included individual and group therapy sessions, neurology-related appointments, and ketamine-assisted psychotherapy.

Meanwhile, revenue for the first half of fiscal 2022 increased 242% year-over-year to $1.6 million.

Additionally, gross margin in the first half of 2022 was 17.8%, compared to 21.2% in the same period last year.

Significantly, gross profit during the first half of 2022 improved significantly to $279,724 from a gross loss of $97,859 in the first half of 2021.

Numinus has five wellness clinics serving clients – one in Vancouver and Toronto, and three in Montreal – which have 21 treatment rooms. Additionally, the company has two dedicated research clinics, where psychedelic studies are conducted in Vancouver and Montreal.

The company has announced that it will open a new flagship wellness clinic in Vancouver in late summer or early fall of this year.

“Collectively, our combined business will become a leading integrated mental health care company providing psychedelic-assisted therapies across North America, generating more revenue than any of our peers,” Nyquvest said.

Contact author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Comments are closed.