- Cannara Biotech Inc. (TSXV:LOVE) reported record growth and profitability in it Q4 and 2023 fiscal year results
- The Montreal-based cannabis company declared Q4 and year end net revenues of C$18.3 million and C$57.6 million, representing a 53 per cent and 60 per cent increase compared to the same periods last year
- Cannara generated a record quarterly net income of C$4.6 million and operating cash flows of C$2.8 million
- Cannara Biotech Inc. last traded at $0.85 per share
Cannara Biotech Inc. (TSXV:LOVE) reported record growth and profitability in it Q4 and 2023 fiscal year results.
Cannara Biotech financial highlights
The Montreal-based cannabis company declared Q4 and year-end net revenues of C$18.3 million and C$57.6 million, representing a 53 per cent and 60 per cent increase compared to the same periods last year.
Q4 showed significant growth over Q3 2023 with higher net revenues by 15 per cent, operating income rose by 36 per cent, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 26 per cent and net income rose by 58 per cent.
Cannara generated a record quarterly net income of C$4.6 million and operating cash flows of C$2.8 million. This is the 10th consecutive quarter the company had delivered positive adjusted EBITDA, this time of C$4.9 million, a 91 per cent jump. Adjusted EBITDA was C$13.7 million for fiscal year 2023, a 141 per cent increase compared to the 12-month reporting period in 2022.
The company ranked as Québec’s third-largest licensed producer in market share, holding approximately 8.5 per cent of the market on Aug. 31. After year-end, Cannara’s market share in the province increased to 8.8 per cent in October 2023.
In Ontario, the company’s market share grew by 11 per cent in Q4 2023 compared to Q3 2023, ranking ninth with a 3 per cent market share in Canada’s largest cannabis market. In October 2023, Cannara has further increased its market share to 3.2 per cent.
Looking west, Cannara dramatically increased market share in Alberta by 1,100 per cent since its launch in May 2023. As of Aug. 31, Cannara accounts for 1.2 per cent of the total market in Alberta, Canada’s second largest cannabis market. In October 2023, Cannara reached a market share of 2.3 per cent in that province, a 92 per cent increase from August this year.
In British Columbia, Cannara’s market share increased by 60 per cent in Q4 2023 compared to Q3 2023, and now represents a market share of 0.8 per cent. Its market share in B.C. has since increased to 0.9 per cent as of October 2023.
Cannara Biotech management’s take
In a media release on this news, Cannara’s president and chief executive officer, Zohar Krivorot said the company isn’t just growing, it’s charting a path of sustained, profitable growth that sets a new standard for the industry.
“In this dynamic cannabis market, our rapid ascent to having the third-largest market share in Quebec is just the beginning,” he said. “We’re seeing continued growth in Ontario, Alberta and British Columbia, and our achievement of activating nine grow zones well ahead of schedule in the third quarter of this year is a testament to our team’s dedication and strategic planning. Our three flagship brands have not only captured market attention but have also played a pivotal role in driving our profitability, with over 70 new SKUs delivered this year, achieving yet another record for Cannara. This success is a clear indicator of our ability to balance growth with profitability. Our commitment to bringing high-quality, innovative cannabis products to the market is unyielding, and we anticipate our expanding product catalog to further solidify our position as a leader in the industry.”
Cannara Biotech Inc. is a producer of premium-grade cannabis and cannabis-derivative products that owns two mega facilities based in Québec spanning more than 153,000 square metres providing the company with 100,000 kilograms of potential annualized cultivation output.
Cannara Biotech Inc. last traded at $0.85 per share.
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