Abacus Health Products

CN: ABCS

C$70.9m market cap

C$5.9 last close

Abacus Health Products is a consumer healthcare company that is combining CBD with active pharmaceutical ingredients to provide relief from those suffering from pain, itch and acne, among other indications.

Investment summary

Abacus reported revenue of US$4.1m in Q319, up 97.4% year-on-year. Through the first nine months sales are up 99.3%. For the quarter, CBD CLINIC sales were US$2.9m, up 42.7% compared to Q318, and CBDMEDIC sales were US$1.2m, up 71.9% compared to Q219. We expect this high rate of growth for CBDMEDIC to continue as the brand can now be found in 4,600 retail locations (up from 3,000 last quarter) and will be in 7,000 as of January of 2020 thanks to the upcoming deployment in an additional major national retail pharmacy chain.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 2.6 0.6 0.5 N/A N/A N/A
2018A 8.5 1.0 0.6 4.32 103.4 70.0
2019E 16.1 (16.8) (17.1) (86.53) N/A N/A
2020E 39.7 (6.5) (6.8) (29.91) N/A N/A
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (US$m) 23.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 2.6 (25.4) N/A
Relative* 2.3 (26.9) N/A
52-week high/low C$17.8/C$4.2
*% relative to local index
Key management
Perry Antelman CEO
Henry (Hank) Hague, III FD