Decibel Cannabis Reports 16% YoY Drop In Q1 Revenue, CEO Expects Improved Q2 And 'Continued Path To Sustainable Growth And Profitability'
Decibel Cannabis Company Inc. (TSXV:DB) (OTCQB:DBCCF), a maker of premium cannabis and extract manufactured products, announced its unaudited interim financial results on Wednesday for the three months ending March 31, 2024.
The Alberta-based company reported a year-over-year decrease of 16% in net revenue to CA$21 million ($15.4 million).
Benjamin Sze, the company's CEO said “despite the drop in revenue, we remain one of Canada’s top brands by market share." The company boasted a national market share of 6% in the first quarter, placing it as the 4th largest licensed producer in Canada by market share, the company noted in a press release.
"With a focused effort on our strategy, we expect an improved Q2 and more importantly a continued path to sustainable growth and profitability," Sze continued. "I am currently undergoing a comprehensive business review and I look forward to sharing the initiatives undertaken before July 15th.”
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.
Q1 2024 Financial Highlights
- Gross margin before fair value adjustments was 48% in the first quarter of 2024, compared to 51% in the first quarter of 2023.
- Adjusted EBITDA of CA$3.6 million in the first quarter of 2024, with a year-over-year decline of 45% over the first quarter of 2023.
- Positive free cash flow of CA$375 thousand in the first quarter of 2024, with a sequential decrease of 79% over the first quarter of 2023.
- Adjusted net loss of CA$3.5 million in the first quarter of 2024, with a decline of CA$6.8 million over the first quarter of 2023.
DBCCF Price Action
Decibel's shares traded 0.47% lower at $0.0639 per share at the time of writing on Wednesday morning.
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