Cannara Biotech Reports 6% YoY Drop In Q3 Gross Profit, 22% Revenue Increase As It Enhances Sales Force And Infrastructure

Author: Jelena Martinovic | July 23, 2024 02:06pm

Vertically integrated cannabis company Cannara Biotech Inc. (TSXV:LOVE) (OTCQB:LOVFF) (FRA: 8CB0) announced its fiscal third quarter 2024 financial and operating results on Tuesday for the three month period ended May 31, 2024.

Zohar Krivorot, Cannara’s president and CEO, praised the company's "strong performance," during the period, with net revenues reaching CA$19.5 million ($14.2 million) during the quarter, representing a 22.6% year-over-year increase.

“Historically, our sales growth has been driven by great customer loyalty and strong demand for our products, amplified by organic word-of-mouth promotion," Krivorot explained. "However, as indicated by our flat quarter-to-quarter results, this can only take us so far. To continue our expansion across the country, we have begun enhancing our sales force and infrastructure."

Read Also: Cannara Biotech Reports 51% YoY Revenue Increase In Q2, Wider Net Loss

Q3 2024 Financial Highlights

• Gross profit, before fair value adjustments, decreased to CA$5.7 million from CA$6.1 million in the prior year's quarter, representing a 6.1% year-over-year decline.
• Gross profit percentage before fair value adjustments was 29% compared to 38% in the corresponding quarter of 2023.
• Operating income totaled CA$3.6 million compared to CA$4.3 million in the same period of fiscal 2023.
• Net income of CA$2 million compared to CA$2.9 million in the prior year's period.
• Adjusted EBITDA came in positive at CA$2.8 million, compared to CA$3.9 million adjusted EBITDA gain in the prior year's period.
• The company generated operating cash flow amounting to CA$4.3 million compared to CA$2.5 million in the third quarter of last year, representing a year-over-year increase of 72%.
• Free cash flow increased to CA$1.2 million from CA$37,000 in the third quarter of 2023.
• Generated earnings per share of CA$0.02 compared to CA$0.03 in the prior year's period.

Q3 2024 Operational Highlights

• Expansion in Manitoba, Canada;
• Successful launch of three new genetics for Cannara's House of Brands;
• Sale of a parcel of land at Valleyfield site;
• Cannara enters East Coast recreational market with the 4/20-themed offer with NSLC; and
• Continued expansion in Quebec and other provinces.

Read Next:

• Cannara Biotech Q1 Results: Revenue, Net Income And Market Share Up, Quarter Also Marks Company’s First Export Sale

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Posted In: LOVE LOVFF TSXV:LOVE