Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) delivered its fiscal first quarter 2024 monetary outcomes for the quarter ending November 30, 2023. The Canadian-based hashish firm reported that its fiscal first quarter income jumped 89% to $19.5 million from final yr’s $10.3 million for a similar time interval. The corporate additionally reported a internet earnings of $2.1 million in comparison with the $2,951 internet earnings generated within the first quarter of 2023. The earnings per share for the quarter was $0.02. All figures are in Canadian {dollars}.
“The primary quarter of 2024 has been one other important interval for Cannara, with record-breaking internet revenues of $19.5 million, an 89% improve from the comparative quarter in 2023, and an unbelievable internet earnings surge,” said Zohar Krivorot, President & Chief Government Officer. “As we construct on this momentum in 2024, our roadmap is evident, continued execution with excellence, value efficiencies, and product innovation. This strategic growth is not only about amount, it’s about deepening our market penetration by enriching our buyer’s expertise with high-quality merchandise that stand out out there.”
Numbers behind the expansion
In the course of the quarter, Cannara stated it persistently produced from a complete of 9 rising zones out of the Valleyfield Facility. In January 2024, the corporate stated it activated its 10th rising zone reaching over 275,000 sq. toes of energetic manufacturing cover at its Valleyfield and Farnham Facility, bringing the Firm’s complete manufacturing to roughly 33,500 kg of hashish per yr.
The corporate additionally stated in its earnings launch that 1,340,000 items have been offered throughout the quarter throughout three flagship manufacturers, a 99% improve in comparison with 675,000 items offered within the first quarter of 2023 and an 11% improve in comparison with the 1,202,000 items that have been offered within the earlier quarter.
“Our first quarter outcomes are continued stable proof of Cannara‘s sturdy monetary well being and strategic method to enterprise operations,” said Nicholas Sosiak, CFO of Cannara. We now have seen spectacular gross sales will increase and a gentle rise in adjusted EBITDA, internet earnings, and money circulate from operations, which units a robust base for the remainder of the yr. Shifting into 2024, our plan is to continue to grow our market share, introduce our manufacturers to new areas in Canada, and launch merchandise that meet our prospects’ wants. We’re centered on retaining our funds sturdy whereas we develop and make our operations much more cost-effective. The primary quarter monetary outcomes are aligned with our monetary plan and positions Cannara for what we count on to be our most profitable yr by way of efficiency and monetary achievements,” stated Sosiak.
Stability sheet
Cannara additionally reported that it had $30.5 million in working capital as of November 30, 2023. The corporate delivered constructive working money flows elevated 233% to $400,000 within the quarter versus a destructive working money circulate of $300,000 final yr. The free money circulate for the quarter elevated to $4.9 million, a 145% improve in comparison with the free money circulate of $2 million recorded in 2023.
Market share assessment
Cannara Biotech revealed the next rankings for its market share within the completely different Canadian provinces:
- In Quebec, the corporate ranked in market share because the province’s fourth largest licensed producer, holding roughly 8.7% of the market throughout the first quarter of 2024.
- In Ontario, Cannara presently holds rank because the ninth prime license producer by market share, with a 3.15% share of Canada’s largest hashish market.
- In Alberta, the corporate dramatically elevated its market share within the province by 98.3% within the quarter from a 1.2% share within the fourth quarter of 2023 to a 2.3% share within the first quarter of 2024.
- In British Columbia, the corporate’s market share reached 0.84%.
Disclosure
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