Canadian Cannabis Processor Nextleaf Reports 50% YoY Revenue Boost, Remains Debt-Free, Focused On Innovation

Author: Jelena Martinovic | August 30, 2024 10:49am

Cannabis processor Nextleaf Solutions Ltd. (CSE:OILS) (OTCQB:OILFF) (FSE: L0MA) announced its financial results on Thursday for the third quarter ending June 30th, 2024.

The Vancouver-based company achieved gross revenue of CA$4 million ($3 million), representing a 50% increase year-over-year and net revenue of CA$3,050,508, representing a 37% growth year-over-year. During the quarter the company maintained secure debt-free status.

"We’re entering a new phase of our long-term growth strategy," said interim CEO Emma Andrews. "We are committed to building a sustainable legacy and this involves expanding our marketing tactics, investing deeper into inventory, innovation, and product development to remain competitive. Staying true to our DNA we are uncompromising on quality.”

Read Also: Nextleaf’s Q2 Net Revenue Up 57% YoY, Reports Growth Across ‘Key Categories’

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Q3 2024 Financial Highlights

• Gross profit amounted to CA$884,344, down from CA$975,098 in the prior year.
• Achieved a gross margins of 29%, reflecting effective cost control and pricing strategies.
• Loss and comprehensive loss totaled CA$317,264, compared to an income and comprehensive income of CA$419,875 in the same quarter of last year.
• As of June 30, 2024, the company had CA$9 million in total assets and CA$4.3 million in total liabilities, up from CA8.5 million and down from CA$4.4 million, respectively, as of Sept. 30, 2023.

Q4 FY2024 Outlook

The company plans to prioritize and allocate working capital to the following strategic initiatives throughout the remainder of the last quarter of fiscal 2024, including new product launches, inventory building, upgraded infrastructure, digital marketing and education and trade marketing initiatives.

“Building equity through consumer brands takes time," Andrews said. "I’ve led teams through a 10x scale-up before and understand the patience, resilience, ingenuity, and stamina required to make it happen. Our Q3 results show the incremental progress made in a few short months, and the exponential potential ahead of us as we continue to scale.”

OILFF Price Action

Nextleaf's shares traded 10.43% lower at $0.0601 per share at the time of writing on Friday morning.

Read Next:

• Nextleaf’s Alberta Debut Results In 170% YoY Net Revenue Surge In Q1, Here’s What’s Next For The Cannabis Co.

Posted In: CSE:OILS OILFF