Cannara Biotech Announces Record-Breaking Q1 2024 Results: Continued Robust Growth and Market Expansion
- Record Q1 net revenues of $19.5 million, an 89% increase from the previous year
- Operating income of $3.4 million, a 201% increase
- Delivered an eleventh consecutive quarter of positive Adjusted EBITDA of $5.2 million
- Q1 net income of $2.1 million compared to $2,951 in Q1 2023
- Vertically integrated producer of premium-grade cannabis and derivative products with two mega facilities in Quebec
- None.
Record Q1 net revenues of
Q1 operating income of
Delivered an eleventh consecutive quarter of positive Adjusted EBITDA of
Q1 net income of
All financial results are reported in Canadian dollars, unless otherwise stated.
"The first quarter of 2024 has been another significant period for Cannara, with record-breaking net revenues of
"Our first quarter results are continued solid proof of Cannara's strong financial health and strategic approach to business operations," stated Nicholas Sosiak, CFO of Cannara. We have seen impressive sales increases and a steady rise in adjusted EBITDA, net income, and cash flow from operations, which sets a strong base for the rest of the year. Moving into 2024, our plan is to keep growing our market share, introduce our brands to new regions in
Fiscal First Quarter Financial Highlights
- Q1 2024 gross cannabis revenue increased by
$15.1 million $11.2 million $26.3 million - Q1 2024 net revenues increased by
89% to$19.5 million $10.3 million - Q1 2024 gross profit before fair value adjustments was
$7.9 million , a98% increase compared to$4 million - Q1 2024 operating income increased to
$3.4 million 210% increase compared to the$1.1 million - Delivered the Company's eleventh straight quarter of positive Adjusted EBITDA of
$5.2 million 206% increase compared to the$1.7 million - Q1 2024 net income of
$2.1 million $2,951 - The Company generated earnings per share of
$0.02 - Posted positive operating cash flows of
$400 k233% increase compared to negative operating cash flows of$300 k - Free cash flow for Q4 2023 increased to
$4.9 million 145% increase compared to the free cash flow of$2 million - The Company has
$30.5 million
First Quarter Sales and Operational Highlights
- During the quarter, consistently produced from a total of 9 growing zones out of the Valleyfield Facility. In January 2024, Cannara activated its 10th growing zone reaching over 275,000 square feet of active production canopy at its
Valleyfield and Farnham Facility, bringing the Company's total production to approximately 33,500 kg of cannabis per year. - 1,340,000 units were sold during Q1 2024 across 3 flagship brands, a
99% increase compared to 675,000 units sold in Q1 2023 and an11% increase compared to the 1,202,000 units that were sold in the previous quarter. - 3,836 kg of cannabis flower and 2,964 kg of estimated equivalent of cannabis flower used for derivates products were sold during Q1 2024, a
157% increase compared to 2,270 kg of cannabis flower and 380 kg of estimated equivalent of cannabis flower used for derivates products sold in Q1 2023 and a15% increase compared to the previous quarter. - In
Quebec , the Company ranked in market share as the province's 4th largest licensed producer, holding approximately8.7% of the market during Q1 20241. - In
Ontario , Cannara currently holds rank as 9th top license producer by market share, with a3.15% share ofCanada 's largest cannabis market2. - In
Alberta , the Company dramatically increased its market share in the province by98.3% in the quarter from a1.2% share in Q4 2023 to a2.3% share in Q1 20242. - In
British Columbia , the Company's market share reached0.84% 2. - Increased its total national product portfolio of cannabis products by
60% from 97 SKUs in Q4 2023, to 155 SKUs at the end of Q1 2024, with product innovation in new categories such as infused pre-rolls, milled flower and budget-friendly vapes. - Introduced two new Tribal genetics: Jigglers and Drip Station.
- Successfully completed its first international export sale of cannabis product to
Israel , validating Cannara's ability to export cannabis as an opportunistic and ancillary revenue stream.
During the first quarter of 2024, the Company purchased 281,900 additional common shares having an average book value of
Subsequent to quarter-end, the Company purchased 5,000 additional common shares having an average book value of
Subsequent to quarter-end, the Company granted a total of 625,000 stock options at an exercise price of
__________________________ |
1 Based on estimated sales data provided by Weed Crawler, for the period of June to August 2023 and September to November 2023 |
2 Based on Headset Data for the period of June to August 2023 and September to November 2023 |
Three-month periods ended | ||
Selected Financial Highlights | November 30, | November 30, |
Gross revenue1 | $ 19,426,528 | $ 10,241,414 |
Other income | 56,766 | 70,191 |
19,483,294 | 10,311,605 | |
Gross profit, before fair value adjustments | 7,935,717 | 4,023,398 |
%2 | 41 % | 39 % |
Gross profit | 8,235,356 | 4,832,595 |
%3 | 42 % | 47 % |
Operating expenses | 4,796,710 | 3,689,720 |
Operating income | 3,438,646 | 1,142,875 |
%4 | 18 % | 11 % |
Net finance expense | 1,331,367 | 1,139,924 |
Net income | 2,107,279 | 2,951 |
%5 | 11 % | 0 % |
Adjusted EBITDA6 | 5,170,812 | 1,716,833 |
%6 | 27 % | 17 % |
Basic earning per share | $ 0.02 | $ - |
Diluted earning per share | $ 0.02 | $ - |
November 30, 2023 | August 31, 2023 | |
Cash | $ 2,639,385 | $ 4,270,517 |
Accounts receivable | 9,880,853 | 10,592,705 |
Biological assets | 6,432,262 | 5,774,121 |
Inventory | 30,321,481 | 27,997,589 |
Working capital7 | 30,500,775 | 30,513,009 |
Total assets | 144,821,913 | 141,522,254 |
Total current liabilities | 22,261,932 | 21,182,827 |
Total non-current liabilities | 40,700,914 | 40,595,383 |
Net assets | 81,859,067 | 79,744,044 |
Free cash flow6 | 4,861,880 | 11,550,569 |
1 Gross revenue included revenue from sale of goods, net of excise taxes, services revenues and lease revenues. | ||
2 Gross profit before fair value adjustments % is determined as Gross profit before fair value adjustments divided by Total revenues. | ||
3 Gross profit % is determined as Gross profit divided by Total revenues. | ||
4 Operating income % is determined as Operating income divided by Total revenues. | ||
5 Net income % is determined as Net income divided by Total revenues. | ||
6 Adjusted EBITDA, working capital and free cash flow are non-GAAP financial performance measures with no standard definition under IFRS. | ||
Adjusted EBITDA % is a non-GAAP financial ratio and is determined as Adjusted EBITDA divided by total revenues. | ||
7 Working capital is determined as total current assets minus total current liabilities. | ||
Cannara also held its Annual General Meeting of shareholders (the "Meeting") on January 25th, 2024. Shareholders holding 45,711,848 shares or
Votes FOR | % FOR | Votes AGAINST | % AGAINST |
45,669,087 | 99.92 % | 36,466 | 0.08 % |
All director nominees set out in the Management Information Circular dated December 11, 2023 (the "Circular"), were elected as directors, to serve until the next meeting of shareholders of the Company or until their successors are elected or appointed.
Name | Votes FOR | % FOR | Votes WITHHELD | % WITHHELD |
Mary Durocher | 45,545,229 | 100.00 % | 1,453 | 0.00 % |
Jack M. Kay | 45,517,725 | 99.94 % | 28,957 | 0.06 % |
Zohar Krivorot | 45,525,973 | 99.95 % | 20,709 | 0.05 % |
Donald Olds | 45,545,123 | 100.00 % | 1,559 | 0.00 % |
Derek Stern | 45,544,775 | 100.00 % | 1,907 | 0.00 % |
The Company's shareholders also appointed KPMG LLP as auditor of the Company for the ensuing year at a remuneration to be fixed by the directors.
Votes FOR | % FOR | Votes WITHHELD | % WITHHELD |
147,139,805 | 99.87 % | 191,138 | 0.13 % |
The Company's shareholders also approved the Company's rolling stock option plan and restricted share unit plan, as is required on an annual basis pursuant to TSX-V policies.
Plan | Votes FOR | % FOR | Votes AGAINST | % AGAINST | Voted WITHHELD | % WITHHELD |
Stock Option Plan | 45,423,097 | 99.73 % | 97,953 | 0.22 % | 25,632 | 0.06 % |
Restricted Share Unit Plan | 45,456,640 | 99.80 % | 81,610 | 0.18 % | 8,432 | 0.02 % |
The Company's shareholders also approved the extension of the expiry date of all options currently issued and outstanding to company insiders by two years.
Plan | Votes FOR | % FOR | Votes AGAINST | % AGAINST | Voted WITHHELD | % WITHHELD |
Stock Option Plan | 45,423,097 | 99.73 % | 97,953 | 0.22 % | 25,632 | 0.06 % |
Restricted Share Unit Plan | 45,456,640 | 99.80 % | 81,610 | 0.18 % | 8,432 | 0.02 % |
The Board of Directors approved the extension of the expiry date of all options currently issued and outstanding on December 6th, 2023, subject to the receipt of shareholder approval at the Meeting.
As at the date of this report, the Company had 90,018,592 common shares, 4,538,300 stock options and 1,504,183 RSUs issued and outstanding. For further information, the complete Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis, along with additional information about the Company and all of its public filings that are available at sedarplus.ca and the Company's investor website, investors.cannara.ca.
Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB0) is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Canadian markets. Cannara owns two mega facilities based in
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Cannara Biotech Inc.
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