Red Light Holland Reports Second Quarter 2025 Results
Red Light Holland reports Q2 2024 financial results with revenue growth of 39.1% to $1.4 million for the quarter and 33.9% to $2.9 million for six months. The company maintains a strong cash position of $12.79 million as of September 30, 2024. Gross profit margins were 40.4% and 40.2% for three and six months respectively. EBITDA loss improved significantly, decreasing by 64.3% to $320k for the quarter. Nearly all income-generating portfolio companies showed positive operating cash flow, with notable growth across the business despite market challenges. The company's recent partnership with Costco Canada and strategic focus on functional mushrooms positions it for continued expansion.
Red Light Holland riporta i risultati finanziari del secondo trimestre del 2024, con una crescita dei ricavi del 39,1%, raggiungendo 1,4 milioni di dollari per il trimestre e del 33,9%, arrivando a 2,9 milioni di dollari per il semestre. L'azienda mantiene una solida posizione di liquidità di 12,79 milioni di dollari al 30 settembre 2024. I margini di profitto lordo sono stati del 40,4% e del 40,2% rispettivamente per tre e sei mesi. La perdita EBITDA ha mostrato un miglioramento significativo, diminuendo del 64,3% a 320k dollari per il trimestre. Quasi tutte le aziende del portafoglio generatrici di reddito hanno riportato flussi di cassa operativi positivi, con una crescita notevole nonostante le sfide del mercato. La recente partnership dell'azienda con Costco Canada e il focus strategico sui funghi funzionali la posizionano per un'espansione continua.
Red Light Holland informa sobre los resultados financieros del segundo trimestre de 2024, con un crecimiento de ingresos del 39,1%, alcanzando 1,4 millones de dólares en el trimestre y del 33,9%, sumando 2,9 millones de dólares en seis meses. La empresa mantiene una sólida posición de efectivo de 12,79 millones de dólares al 30 de septiembre de 2024. Los márgenes de utilidad bruta fueron del 40,4% y del 40,2% para tres y seis meses, respectivamente. La pérdida de EBITDA mejoró significativamente, disminuyendo un 64,3% a 320 mil dólares en el trimestre. Casi todas las empresas generadoras de ingresos del portafolio mostraron flujos de caja operativos positivos, con un notable crecimiento a pesar de los desafíos del mercado. La reciente asociación de la empresa con Costco Canadá y el enfoque estratégico en los champiñones funcionales la posicionan para una expansión continua.
레드 라이트 홀랜드는 2024년 2분기 재무 결과를 보고하며, 분기 매출이 139.1% 증가하여 140만 달러, 6개월 매출이 33.9% 증가하여 290만 달러에 달한다고 밝혔습니다. 회사는 2024년 9월 30일 현재 1,279만 달러의 강력한 현금 위치를 유지하고 있습니다. 총 이익률은 각각 40.4%와 40.2%로, 3개월 및 6개월에 해당합니다. EBITDA 손실은 64.3% 감소하여 분기 동안 32만 달러로 크게 개선되었습니다. 소득 발생 포트폴리오 회사의 거의 모든 기업은 긍정적인 운영 현금 흐름을 보였으며, 시장의 도전에도 불구하고 비즈니스 전반에 걸쳐 두드러진 성장을 이루었습니다. 회사의 최근 코스트코 캐나다와의 파트너십 및 기능성 버섯에 대한 전략적 초점은 지속적인 확장을 위한 기반을 마련해 주고 있습니다.
Red Light Holland annonce les résultats financiers du deuxième trimestre 2024, avec une croissance des revenus de 39,1%, atteignant 1,4 million de dollars pour le trimestre et de 33,9%, totalisant 2,9 millions de dollars pour six mois. L'entreprise maintient une solide position de liquidités de 12,79 millions de dollars au 30 septembre 2024. Les marges bénéficiaires brutes étaient de 40,4% et de 40,2% pour respectivement trois et six mois. La perte d'EBITDA s'est considérablement améliorée, diminuant de 64,3% pour atteindre 320k dollars pour le trimestre. Pratiquement toutes les entreprises génératrices de revenus du portefeuille ont affiché des flux de trésorerie d'exploitation positifs, avec une croissance notable malgré les défis du marché. Le récent partenariat de l'entreprise avec Costco Canada et son axe stratégique sur les champignons fonctionnels la positionnent pour une expansion continue.
Red Light Holland berichtet über die Finanzergebnisse für das zweite Quartal 2024 mit einem Umsatzwachstum von 39,1%, das 1,4 Millionen Dollar für das Quartal erreicht, und von 33,9%, das 2,9 Millionen Dollar für sechs Monate erzielt. Das Unternehmen hält zum 30. September 2024 eine starke Cash-Position von 12,79 Millionen Dollar. Die Bruttogewinnmargen lagen bei 40,4% beziehungsweise 40,2% für drei und sechs Monate. Der EBITDA-Verlust verbesserte sich erheblich und sank um 64,3% auf 320.000 Dollar für das Quartal. Fast alle einkommensgenerierenden Portfoliounternehmen zeigten einen positiven operativen Cashflow, mit bemerkenswertem Wachstum in der gesamten Branche trotz der Herausforderungen am Markt. Die jüngste Partnerschaft des Unternehmens mit Costco Kanada und der strategische Fokus auf funktionale Pilze positionieren es für eine fortgesetzte Expansion.
- Revenue growth of 39.1% to $1.4M in Q2 2024
- Strong cash position of $12.79M, with additional $1.34M received in November
- EBITDA loss reduced by 64.3% to $320k
- Most portfolio companies showing positive operating cash flow
- Strategic partnership with Costco Canada established
- Gross profit margin declined from 45.2% to 40.4% in Q2
- Net loss of $590,455 for the quarter
- Total assets decreased from $24.1M to $23.3M since March 2024
Key Highlights:
Cash Balance:
$12.79 million as of September 30, 2024, including restricted cash ($14.37 million as at March 31, 2024)Additional Cash: Received sales tax refund and interest on November 19,2024, of
$868,960 and Costco payment on receivables of$468,668 on November 8, 2024, bringing the cash balance to approx.$13.5 million as of todayRevenue for Three and Six Months:
$1.4 million and$2.9 million (up39.1% and33.9% from$1.0 million and$2.2 million in 2023)Gross Profit for Three and Six Months:
40.4% and40.2% (45.2% and44.3% in 2023), with a24.1% and21.6% increase in gross profit dollarsEBITDA Loss for Three and Six Months:
$320 k and$1,528 k ($897 k and$2,570 k in 2023, down64.3% and40.5% )Adjusted EBITDA Loss for Three and Six Months:
$249 k and$719 k ($999 k and$1,478 k in 2023, down65.3% and32.4% )Total Assets:
$23.3 million ($24.1 million as at March 31, 2024)
Toronto, Ontario--(Newsfile Corp. - November 29, 2024) - Red Light Holland Corp. (CSE: TRIP) (FSE: 4YX) (OTCQB: TRUFF) ("Red Light Holland" or the "Company"), an Ontario-based corporation engaged in the production, growth, and sale of functional mushrooms and mushroom home grow kits in North America and Europe, and a premium brand of psilocybin truffles to the legal, recreational market within the Netherlands, in compliance with all applicable laws, announces its financial and operational results for the three and six months ended September 30, 2024, the highlights of which are included in this news release. All figures are reported in Canadian dollars. The Company's full set of unaudited condensed interim consolidated financial statements for the three and six months ended September 30, 2024, and accompanying management's discussion and analysis can be accessed by visiting the Company's website at www.RedLight.co and its profile page on SEDAR+ at www.sedarplus.ca.
Todd Shapiro, CEO and Director of Red Light Holland, commented:
"Our Q2 results reflect our unwavering commitment to sustainable growth, strategic partnerships, and strong financial discipline. With revenues growing by
"Despite broader market challenges, tourism being down in the Netherlands, high interest rates leading to less spending plus inflationary pressures, Red Light Holland has proven the resilience of our business model. Our diversified portfolio, including our latest partnership with Costco Canada, positions us for continued success. We are excited for the new year and the renewed focus on healthy eating and alternatives to "Big Pharm", as conversations around psilocybin treatment - especially for our veterans - continue to evolve. With regulatory changes potentially on the horizon, we are well-positioned with our research and development, distribution, branding, and sales infrastructure to capitalize on these emerging opportunities. We are confident that our strategy will pay off as we continue executing our vision of becoming the leading provider of functional mushrooms and psilocybin products in North America and Europe."
"Red Light Holland's motto is: 'Mind, Body, Gain - Grow your health, Build your wealth.' We look forward to what the New Year can bring," added Shapiro.
Key Achievements:
Strategic Revenue Growth: Achieved approximately
30% revenue growth year-over-year, not including the latest impactful Costco Canada reorder/partnership with Happy Caps.Diversified Portfolio: Continued focus on expanding our brand recognition and overall retail distribution channels across Europe and North America, with current sales surpassing
$14 million since going public in 2020.Prudent Cash Management: Significantly reduced the Company's cash burn, reinforcing our focus on financial stability and long-term profitability.
Operational Efficiency: Nearly all of our portfolio-generating companies over the last four quarters have been operating in the black, with positive operating cash flow-excluding depreciation, corporate costs, and other non-operational expenses, demonstrating our effective management and execution.
Forward Outlook:
Red Light Holland remains committed to its strategic path of profitability and continued advocacy for the legalization of, and adult access to, psilocybin. As we expand our product offerings and distribution, we are positioned to capitalize on emerging market opportunities while building long-term shareholder value.
Board Update:
Red Light Holland would like to announce that Ann Barnes has departed from the Company's board of directors. We thank Ann for her valuable contributions and wish her all the best in her future endeavors. We look forward to naming a new board member in the coming weeks as we are currently in discussion with some significant and very successful entrepreneurs interested in the position.
Selected financial information for the second quarter ended September 30, 2024:
(Expressed in Canadian Dollars)
CONSOLIDATED STATEMENTS OF NET LOSS
| (Unaudited) | Three months ended | Six months ended | ||||||||||
| Sep 30 | Sep 30 | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue | 1,367,739 | 983,324 | 2,926,518 | 2,185,002 | ||||||||
| Cost of sales | 815,808 | 538,656 | 1,749,914 | 1,217,237 | ||||||||
| Gross profit | 551,931 | 444,668 | 1,176,604 | 967,765 | ||||||||
| Gross profit as a % of sales | ||||||||||||
| General and administrative | 1,434,309 | 1,450,068 | 2,954,786 | 3,005,505 | ||||||||
| Share based payments | - | 154,370 | 733,905 | 1,066,309 | ||||||||
| Interest expense | 46,246 | 60,329 | 82,118 | 106,804 | ||||||||
| Research | 13,989 | 16,062 | 24,912 | 46,086 | ||||||||
| Loss before other items and taxes | (942,613 | ) | (1,236,161 | ) | (2,619,117 | ) | (3,256,939 | ) | ||||
| Reversal of provision for sales taxes | 163,249 | - | 163,249 | - | ||||||||
| Change in fair value of marketable securities | - | (1,534 | ) | - | (37,026 | ) | ||||||
| Gain on termination of contract | - | - | 161,924 | - | ||||||||
| Contract termination fee | - | - | (171,883 | ) | - | |||||||
| Realized gain on sale of property, plant and equipment | - | - | - | 13,138 | ||||||||
| Change in fair value of convertible debenture | - | (35,955 | ) | 113,615 | - | |||||||
| Change in fair value of derivative liability | - | 13,641 | - | 27,368 | ||||||||
| Change in fair value of call option | - | - | - | (28,110 | ) | |||||||
| Foreign exchange (loss) gain | (2,432 | ) | (3,693 | ) | (9,004 | ) | 1,973 | |||||
| Interest income | 179,731 | 136,551 | 316,403 | 264,242 | ||||||||
| Loss before taxes | (602,065 | ) | (1,127,151 | ) | (2,044,813 | ) | (3,015,354 | ) | ||||
| Recovery of income taxes | 11,610 | 18,933 | 3,980 | 29,768 | ||||||||
| Net loss | (590,455 | ) | (1,108,218 | ) | (2,040,833 | ) | (2,985,586 | ) | ||||
| Net loss attributable to: | ||||||||||||
| Shareholders of Red Light Holland Corp. | (566,195 | ) | (1,066,946 | ) | (1,989,470 | ) | (2,942,976 | ) | ||||
| Non-controlling interests | (24,260 | ) | (41,272 | ) | (51,363 | ) | (42,610 | ) | ||||
| Net loss | (590,455 | ) | (1,108,218 | ) | (2,040,833 | ) | (2,985,586 | ) | ||||
| Loss per share (basic and diluted) | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.01 | ) | ||||
| Weighted average Common Shares outstanding | 399,766,656 | 395,166,917 | 398,838,789 | 394,060,705 | ||||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
| (Unaudited) | Three months ended | Six months ended | ||||||||||
| Sep 30 | Sep 30 | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net loss for the period | (590,455 | ) | (1,108,218 | ) | (2,040,833 | ) | (2,985,586 | ) | ||||
| Income taxes (recovery) | (11,610 | ) | (18,933 | ) | (3,980 | ) | (29,768 | ) | ||||
| Amortization and depreciation | 231,899 | 169,745 | 439,207 | 339,440 | ||||||||
| Interest and accretion | 50,263 | 60,306 | 77,135 | 106,157 | ||||||||
| EBITDA(i) | (319,903 | ) | (897,100 | ) | (1,528,471 | ) | (2,569,757 | ) | ||||
| Adjusted for non-operating or unusual items: | ||||||||||||
| Reversal of provision for sales taxes | (163,249 | ) | - | (163,249 | ) | - | ||||||
| Share based payments | - | 154,370 | 733,905 | 1,066,309 | ||||||||
| Unrealized loss on revaluation of marketable securities | - | 1,534 | - | 37,026 | ||||||||
| Foreign exchange (loss) gain | 2,432 | 3,693 | 9,004 | (1,973 | ) | |||||||
| Loss on revaluation of derivative liability | - | (13,641 | ) | - | (27,368 | ) | ||||||
| Gain on revaluation of the equity portion of convertible debenture | - | 35,955 | - | - | ||||||||
| Loss on revaluation of convertible debenture | - | - | (113,614 | ) | - | |||||||
| Gain on revaluation of call option | - | - | - | 28,110 | ||||||||
| Contract termination fee | - | - | 171,883 | - | ||||||||
| Gain on termination of contract | - | - | (161,924 | ) | - | |||||||
| Gain on sale of property, plant and equipment | - | - | - | (13,138 | ) | |||||||
| Adjusted EBITDA(ii) | (480,720 | ) | (715,189 | ) | (1,052,466 | ) | (1,480,791 | ) | ||||
| (i) EBITDA - is a non-IFRS financial measure (ii) Adjusted EBITDA - is a non-IFRS financial measure | ||||||||||||
About Red Light Holland
The Company is an Ontario-based corporation engaged in the production, growth and sale of functional mushrooms and mushroom home grow kits in North America and Europe, and a premium brand of psilocybin truffles to the legal, recreational market within the Netherlands, in compliance with all applicable laws.
For additional information:
Todd Shapiro
Chief Executive Officer and Director
Tel: 647-643-TRIP (8747)
Email: todd@redlight.co
Website: www.RedLight.co
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Often, but not always, forward-looking statements and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its respective subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Examples of such information include statements with respect to: the Company's strategic commitment to growth while maintaining strong cash management; the Company focusing on expanding brand recognition and overall retail distribution channels; the Company focusing on financial stability and long-term profitability; the Company focusing on continued advocacy for the legalization of, and adult access to, psilocybin; the Company being well-positioned with its research and development, distribution, branding, and sales infrastructure strategies to capitalize on emerging market opportunities while building long-term shareholder value; the Company naming a new board member in the coming weeks; and the Company becoming the leading provider of functional mushrooms and psilocybin products in North American and Europe.
Forward-Looking information in this news release are based on certain assumptions and expected future events, namely: continued approval of the Company's activities by the relevant governmental and/or regulatory authorities; the Company's ability to maintain its prudent cash management; the Company ability to explore potential mergers and acquisitions; the Company's ability to advance its research and development efforts; the Company's ability to maintain its strategic commitment to growth while maintaining strong cash management; the Company's continued focus on expanding brand recognition and overall retail distribution channels; the Company's continued focus on financial stability and long-term profitability; the Company's continued focus on advocacy for the legalization of, and adult access to, psilocybin; the Company being well-positioned with its research and development, distribution, branding, and sales infrastructure strategies to capitalize on emerging market opportunities while building long-term shareholder value; the Company's ability to name a new board member in the coming weeks; and the Company becoming the leading provider of functional mushrooms and psilocybin products in North American and Europe.
Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, namely: the Company's inability to obtain continued approval of the Company's activities by the relevant governmental and/or regulatory authorities; the Company's inability to continue advocating for the legalization of, and adult access to, psilocybin; the Company's inability to increase its brand recognition and overall retail distribution channels; the Company's inability to maintain its prudent cash use; the Company inability to explore potential mergers and acquisitions; the Company's inability to maintain its strategic commitment to growth while maintaining strong cash management; the Company not being well-positioned with its research and development, distribution, branding, and sales infrastructure strategies to capitalize on emerging market opportunities while building long-term shareholder value; the Company not naming new board member in the coming weeks; and the Company not becoming the leading provider of functional mushrooms and psilocybin products in North American and Europe.
Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.
The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
________________________
1 Earnings before interest, taxes, depreciation and amortization.
2 Adjusted EBITDA is a non-International Financial Reporting Standards financial measure.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/231868
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