Nextleaf's Q2 Net Revenue Up 57% YoY, Reports Growth Across 'Key Categories'

Author: Jelena Martinovic | May 29, 2024 11:00am

Cannabis processor Nextleaf Solutions Ltd. (CSE:OILS) (OTCQB:OILFF) (FSE: L0MA) reported its financial results on Wednesday for the second quarter ended March 31, 2024.

The Vancouver-based company said it has achieved 7% sequential and 57% year-over-year revenue growth, hitting a record CA$3.4 million ($2.5 million) in net revenue.

“We have been diligently focused on executing our commercialization roadmap and product pipeline throughout this past quarter," Emma Andrews, the company's interim CEO said. "We’ve made strategic investments into building up our inventory to strengthen our position, boost commercialization efforts, and expand territory sales. We’re excited about the growth we’re seeing across our key categories, and we are motivated to continue setting the standard for unparalleled value.”

Q2 2024 Financial Highlights

Gross profit was CA$950,516, compared to CA$448,015 in the prior year’s period.
Achieved gross margins of 28%, up from 20% in the corresponding quarter of 2023.
The reported loss of CA$1.01 million was primarily attributed to a non-cash charge related to a share-based compensation expense, and it compares to CA$25,168 loss in the prior year’s period.
For the six months ended Q2-2024, the company achieved a positive adjusted EBITDA of CA$554,638, marking an improvement compared to a loss of CA$201,951 in the same period of the previous year.
Further strengthened its balance sheet by reducing its CRA liability by CA$740,000.

As yet another earnings reporting season wraps up it is important to understand what these figures mean for the future of the industry. Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

Other Quarterly Highlights

Nextleaf issued shares and stock options as part of an employee retention and incentivization initiative, with employees voluntarily electing to receive share payments instead of cash.
New category launch of Glacial Gold MAX THC Infused Pre-rolls into major markets including BC, Alberta, and Ontario.
Nine new product launches.