CBD-Focused Avicanna Reports First-Ever Adjusted EBITDA Positive Quarter, 451% YoY Spike In Q1 Record Revenue

Author: Jelena Martinovic | May 14, 2024 09:27am

Cannabis-focused biopharmaceutical company Avicanna Inc. (TSX:AVCN) (OTCQX:AVCNF) (FSE: 0NN) announced its financial results on Tuesday for the first quarter of fiscal 2024.

CEO Aras Azadian called it its "best quarter.” In addition to being its first EBITDA-positive quarter, it also saw record gross margins.

Azadian credited the results to "the proprietary nature of products and services we offer in Canada."

The company, founded in 2016, has also "made advancements in our international pillars with our first pharmaceutical marketing authorization in Colombia and into two new agreements with two different multinational pharmaceutical companies," he added.

Avicanna achieved a significant milestone recently with the first indication-specific drug registration for Trunerox by INVIMA, Colombia’s health authority.

See also: CBD-Focused Avicanna Taps Into European Market Via Exclusive Pharma Supply Deal

Azadian has previously spoken at Benzinga cannabis events about driving biopharmaceutical advancements of plant-derived, cannabinoid-based products. The 19th Benzinga Cannabis Capital Conference is returning to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

Q1 2024 Financial Highlights

• Record quarterly revenue of CA$6.45 million ($4.7 million) representing a year-over-year increase of 451% and a sequential increase of increase 6.5%. Revenue growth was achieved with a 32% increase in year-over-year operational expenses. 
• Gross profit was roughly CA$3 million up from CA$587,956 in the prior year's period.
• Consolidated gross margins, before fair value changes in bio-assets, of 51%, representing a 21% improvement compared to 42% during the first quarter of fiscal 2023. 
• Total expenses amounted to CA$3.9 million, up from CA$2.9 million in the first quarter of last year.
• Net loss was CA$1 million, down from CA$2.5 million in the prior year's period.
• Adjusted EBITDA of approximately CA$17 000, marking the first adjusted EBITDA positive quarter in the company's history and a significant year-over-year improvement compared to EBITDA loss of CA$1.28 million in the corresponding period of 2023.
• Cash provided from operations was CA$122 000, representing a substantial improvement compared to cash used in operations during the first quarter of 2023 of approximately CA$2.05 million.
• The company had CA$21.5 million in total assets as of March 31, 2024, compared to roughly CA$22 million as of Dec. 1, 2023.

"Avicanna's first EBITDA positive quarter is the result of consistent growth in our revenues which are mainly driven by our medical cannabis business unit including the steadying of the MyMedi.ca platform combined with our operational efficiencies and asset-light model in Canada," CFO Phil Cardella said.

Now read: This Company Is Bringing Medical Marijuana Telehealth To Over Half The U.S.

Posted In: AVCNF TSX:AVCN