Two Key Cannabis Trends Surged - Entourage Health's Financial Results Show Why

Author: Jelena Martinovic | August 30, 2023 09:26am

Canadian cannabis producer Entourage Health Corp. (TSXV:ENTG) (OTCQX:ETRGF) (FSE:4WE) reported on Wednesday financial results for the three months ended June 30, 2023.

The Toronto-based company's second quarter total revenue amounted to CA$13.37 million ($9.83 million) and net revenue of CA$10.17 million, representing a total revenue increase of 1% and a net revenue increase of 5%, showing consistent year-over-year performance.

The uptick in total revenue can be attributed to an 8% increase in adult-use revenue and a significant 45% increase in pre-roll revenue year-over-year.

Entourage recently introduced new product lines, including Dime Bag Pre-Roll Series and Syndicate Cannabis Collection, while it also expanded its Color Cannabis pre-roll series. With the move, Entourage joins other leading players to introduce groundbreaking developments that redefine how we experience cannabis.

If you want to propel your cannabis brand to new heights of success, as Entourage did, consider joining us at the upcoming Benzinga Cannabis Capital Conference in Chicago this Sept 27-28.

Q2 2023 Financial Highlights

Gross profit before changes in fair value was CA$ 2.15 million, down from CA$3 million in the prior quarter and up 354% year-over-year.
Gross margin before changes in fair value was 21% compared to 25% in the first quarter of fiscal 2023.
Loss and comprehensive loss hovered around CA$9.5 million for the second consecutive quarter.
Adjusted EBITDA came in negative at CA$1.7 million, down from a CA3.4 million loss in the previous period, representing a quarter-over-quarter improvement of 28%.
As of June 30, cash and cash equivalents totaled CA$9.4 million, down from CA$15.5 million on March 31.
Working capital totaled CA$120.2 million as of June 30, compared to $111 million on March 31.

"Through the transition to a streamlined model and our strategic collaboration with our trusted supply partner, we've achieved strong results that are driving us toward a leaner and more operationally efficient framework," George Scorsis, CEO and executive chair, said. "We're optimizing the value of every revenue dollar, magnifying our profit margins, and bolstering our cash performance."

Price Action

Entourage's shares traded 13.39% higher at $0.0127 per share at the market close on Tuesday.

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Photo: Courtesy of Elsa Olofsson on Unsplash

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Posted In: ETRGF TSXV:ENTG