International Expansion Still Major Growth Driver For Canadian Cannabis Co. Avant, Reports 4% YoY Increase In Q2 Net Revenue

Author: Jelena Martinovic | July 17, 2024 09:09am

Cannabis producer Avant Brands Inc. (TSX:AVNT) (OTCQX:AVTBF) (FRA: 1BUP) reported its financial results on Monday for the second quarter ended May 31, 2024.

The British Columbia-based company said in a press release that it has achieved "significant financial milestones driven by strategic international expansion and operational improvements."

Q2 2024 Financial Highlights

• Gross revenue increased by 5% reaching CA$9.4 million ($6.8 million) compared to the second quarter of 2023, while net revenue rose by 4% over the same period to CA$8.3 million, demonstrating sustained growth driven by robust international demand.
• International sales rose 26% year-over-year to reach a record CA$3.7 million, now representing 45% of net revenue.
• Gross loss amounted to CA$1.8 million, compared to a gross profit of CA$3.3 million in the prior year's quarter.
• Net loss from operations was roughly CA$5 million, compared to a net income of CA$265 000 in the second quarter of fiscal 2023.
• Net loss and comprehensive loss was CA$3.7 million, compared to a CA$390 000 net loss in the corresponding quarter of 2023.
• Achieved positive adjusted EBITDA of CA$2.8 million.
• As of May 31, 2024, the company had CA$74.4 million in total assets, compared to CA$82.5 million as of Nov. 30, 2023.
• Total liabilities amounted to CA$28.4 million as of May 31, 2024, compared to CA$33.2 million as of Nov. 30, 2023.

Read Also: International Expansion Drives Growth For This Canadian Cannabis Producer As It Reports Record Q1 Revenue

“Avant Brands is on a strong trajectory, and our Q2 2024 results demonstrate the effectiveness of our strategic initiatives. We are capitalizing on the growing international demand for premium cannabis products, while also achieving record profitability," Norton Singhavon, the company's founder and CEO, said. "With a focus on international markets and operational excellence, we are well-positioned for long-term success.”

Fiscal 2024 Outlook

The company said it has undertaken a total of nine international agreements fiscal year to date, with products already shipped to one client and shipments pending for a further five clients.

These new clients represent near-term growth potential spanning territories such as Australia, Germany and Israel, along with new opportunities developing in the Czech Republic, Poland, Portugal, Switzerland and the UK.

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Posted In: AVNT AVTBF TSX:AVNT