Cannara Biotech reports record cannabis sales in first quarter

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Cannara Biotech, a vertically integrated cannabis producer based in Montreal, reported record sales of 19.5 million Canadian dollars ($14.6 million) for the three-month period ended Nov. 30.

The company’s fiscal first-quarter 2024 revenue marked an 89% increase compared to the CA$10.3 million it recorded in the same period one year earlier, according to a financial report released Tuesday.

Cannara Biotech’s net income for the September-November quarter was CA$2.1 million, compared with almost CA$3,000 in the first quarter of 2023.

“As we build on this momentum in 2024, our roadmap is clear, continued execution with excellence, cost efficiencies and product innovation,” CEO Zohar Krivorot said in a statement.

“This strategic expansion is not just about quantity, it is about deepening our market penetration by enriching our customer’s experience with high-quality products that stand out in the market.”

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) – a measure of profitability – amounted to CA$5.2 million, a 206% year-over-year increase, according to a news release.

Free cash flow for the quarter increased to CA$4.9 million, a 145% year-over-year increase.

In the company’s home province of Quebec, Cannara Biotech said it maintained 8.7% of the market during the quarter, making it the fourth-largest licensed producer there.

In Ontario, the largest cannabis market in Canada, Cannara Biotech said it had a 3.15% share, the ninth-most in the province.

The estimates are based on information from data analytics firms WeedCrawler in Quebec and Headset in Seattle.

Cannara Biotech said it had cash of CA$2.6 million as of the end of the quarter.

The licensed producer also held its annual general meeting on Jan. 25, when shareholders approved all director nominees and the appointment of KPMG as auditor.

Cannara Biotech owns two large facilities in Quebec spanning more than 1.65 million square feet, which the company says provides 100,000 kilograms (100 metric tons) of potential cultivation output annually.

Cannara’s shares trade as LOVE on the Toronto Venture Exchange.