Kelowna, British Columbia-based GTEC Holdings reported net income from operations of 282,000 Canadian dollars ($223,600), reversing a net loss of CA$8.3 million in the previous year, according to full-year and fourth-quarter results released Wednesday.
GTEC’s net revenue for the year was CA$7.9 million, a substantial increase from 2019’s CA$2.4 million.
On a quarterly basis, GTEC’s adult-use sales grew steadily, ending the year with fourth-quarter CA$1.9 million in sales for the three months ended Nov. 30, 2020.
GTEC’s positive net income is in contrast to many large-scale producers in Canada that have reported billions of dollars in losses in recent years as they struggled to adapt to an evolving market.
Some smaller producers, on the other hand, have been able to focus their businesses and pivot more gracefully.
In 2020, GTEC sold its last remaining retail asset after a strategic review.
“The company does not believe that it can achieve sustainable competitive advantage in the retail cannabis space, competing against larger competitors with a stronger presence in this sector,” GTEC noted in a disclosure.
The company’s shares are traded on the TSX Venture Exchange under the ticker symbol GTEC.
