International Expansion Drives Growth For This Canadian Cannabis Producer As It Reports Record Q1 Revenue
Canadian cannabis producer Avant Brands Inc (OTCQX:AVTBF) (TSX:AVNT)(FRA:1BU0) reported its financial results on Monday for the first quarter that ended Feb. 29, 2024.
For the quarter, Avant Brands reported "records across key financial metrics, underscoring the company’s commitment to operational excellence," according to a Monday press release.
International sales hit a record of CA$3.3 million ($2.4 million), representing a 21% year-over-year increase, with sales accounting for 37% of total gross revenue. The company attributed the growth to its aggressive market penetration in "key regions," including Australia, Germany and Israel.
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Q1 2024 Financial Highlights
- Net revenue amounted to CA$8 million, up from CA$7 million in the same quarter of last year.
- Gross profit dropped to CA$897 000 from roughly CA$3 million in the prior year's quarter.
- Net loss from operations was $1.6 million compared to a net income from operations of CA$22 000 in the prior year's period.
- Net loss and comprehensive loss was CA$2.7 million, compared to $CA223 000 in the first quarter of fiscal 2023.
- Adjusted EBITDA came in positive at CA$3.8 million, compared to an adjusted EBITDA gain of CA$1.8 million in the prior year's period.
- As of Feb. 29, 2024, the company had CA$ 80.6 million in total assets and CA$ 31.7 million in total liabilities, compared to CA$ 82.5 million and CA$ 33.2 million, respectively, as of Nov. 30, 2023.
Avant Brands Founder and CEO Norton Singhavon praised quarterly financial results.
“Despite facing short-term challenges in late 2023, Avant Brands is pleased to report record-breaking Q1 2024 results across all key metrics," Singhavon said. "This achievement signifies a successful return to our growth trajectory. Our team’s unwavering commitment to production increases, sales growth, and cost reduction has played a pivotal role in driving this turnaround."
AVTBF Price Action
Avant Brands' shares traded 1.35% lower at $0.066 per share after the market close on Friday.
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