Decibel Cannabis Reports 16% YoY Drop In Q1 Revenue, CEO Expects Improved Q2 And 'Continued Path To Sustainable Growth And Profitability'

Author: Jelena Martinovic | May 29, 2024 10:18am

Decibel Cannabis Company Inc. (TSXV:DB) (OTCQB:DBCCF), a maker of premium cannabis and extract manufactured products, announced its unaudited interim financial results on Wednesday for the three months ending March 31, 2024.

The Alberta-based company reported a year-over-year decrease of 16% in net revenue to CA$21 million ($15.4 million).

Benjamin Sze, the company's CEO said “despite the drop in revenue, we remain one of Canada’s top brands by market share." The company boasted a national market share of 6% in the first quarter, placing it as the 4th largest licensed producer in Canada by market share, the company noted in a press release.

"With a focused effort on our strategy, we expect an improved Q2 and more importantly a continued path to sustainable growth and profitability," Sze continued. "I am currently undergoing a comprehensive business review and I look forward to sharing the initiatives undertaken before July 15th.”

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

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Q1 2024 Financial Highlights

• Gross margin before fair value adjustments was 48% in the first quarter of 2024, compared to 51% in the first quarter of 2023.
• Adjusted EBITDA of CA$3.6 million in the first quarter of 2024, with a year-over-year decline of 45% over the first quarter of 2023.
• Positive free cash flow of CA$375 thousand in the first quarter of 2024, with a sequential decrease of 79% over the first quarter of 2023.
• Adjusted net loss of CA$3.5 million in the first quarter of 2024, with a decline of CA$6.8 million over the first quarter of 2023.

DBCCF Price Action

Decibel's shares traded 0.47% lower at $0.0639 per share at the time of writing on Wednesday morning.

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Posted In: DB DBCCF TSXV:DB