This Undervalued Cannabis Stock Has Another Year Of Growth: Reports Record 2023 Revenue And Adjusted EBITDA

Author: Jelena Martinovic | April 29, 2024 10:39am

Decibel Cannabis Company Inc. (TSXV:DB) (OTCQB:DBCCF) reported its audited financial results on Monday for the three and twelve month periods ending Dec. 31, 2023.

The Alberta-based company said it saw a record net revenue of CA$116 million ($84.8 million) in 2023, an increase of 46% over 2022.

“The Company’s fourth quarter financial results delivered another year of growth across all metrics and I look forward to working with the team to continue to build on this success,” said Benjamin Sze, Decibel’s new CEO. Sze was recently appointed to serve as Decibel's CEO, succeeding Paul Wilson. He rejoined the company after previously serving as CEO before resigning in late 2020 for personal reasons.

Decibel kicked off 2024 strong by completing its first export of craft cannabis to Australia in March 2024. This followed receiving its first purchase order for vapes to export to Australia.

See also: Undervalued Cannabis Stock? This Company Could Reach A C$1B Valuation On The Back Of Pre-Roll Sales

The number of companies in the space that are expanding internationally grows by the day, some of them being featured at cannabis events like the recent Benzinga Cannabis Capital Conference in Florida. That event gathered top CEOs, investors and leaders in the cannabis industry.

Benzinga Cannabis Market Spotlight which is slated to take place on June 17 in New Jersey will be another opportunity for those interested to hear insightful business advice from top cannabis experts in the space.

FY 2023 Financial Highlights

• Net Canadian recreational sales totaled CA$105.8 million, up from CA$68.5 million in the prior year.
• International sales totaled CA$3.7 million, up from CA$1.9 million in the prior year.
• Retail sales amounted to $6.5 million, down from CA$8.9 million in 2022.
• Gross profit before value adjustments totaled CA$51.6 million, up from roughly CA$34 million in the prior year.
• Gross margin before value adjustments was 45% compared to 43% in prior year.
• Adjusted EBITDA came in positive at approximately CA$26 million, up from a CA$17 million gain in 2022.
• Adjusted net income was CA$8 million in 2022, representing an increase of CA$4.9 million over 2022.
• Loss and comprehensive loss totaled $CA1.8 million, down from CA$4.4 million in the prior year.

Q4 2023 Financial Highlights

• Net revenue totaled CA$27.7 million, up from CA$25.8 million in the prior year's period.
• Net Canadian recreational sales totaled CA$ 24.8 million, compared to CA$ 21.6 in the fourth quarter of 2022.
• International sales amounted to CA$1.4 million, down from CA$1.9 million in the prior year's period.
• Retail sales totaled CA$1.5 million, down from CA$2.3 million in the fourth quarter of 2022.
• Gross profit before value adjustments was CA$12.4 million, compared to CA$11 million in the corresponding period of last year.
• Gross margin before value adjustments was 45% compared to 43% in prior year's period.
• Adjusted EBITDA came in positive at CA$5.1 million, down from an adjusted EBITDA gain of CA$7 million in the prior year's period.
• Loss and comprehensive loss totaled CA$1.2 million, down from CA$3.1 million loss in the fourth quarter of 2022.

DBCCF Price Action

Decibel's shares traded 4.78% higher at $0.0965 per share after the market close on Friday.

Now read: Canadian Cannabis Companies Could See Valuations Soar By Up To 300% With Tax Reform, New Report Shows

Posted In: DB DBCCF TSXV:DB