- Cannabis company Dixie Brands (DIXI.U) has reported an 85 per cent increase in revenue for the quarter ending March 31, 2020
- Total revenue jumped to C$5.5 million during the quarter from around 3 million in the first quarter of 2019
- This was largely driven by an increased market share in Colorado, Maryland and Michigan, as well as a renewed focus on California
- Gross profit for the quarter was also up 65 per cent from $1.4 million last year to $2.37 million this year
- Shares in Dixie Brands (DIXI.U) are currently suspended, and last traded at a price of 13.5 cents
Cannabis company Dixie Brands (DIXI.U) has reported an 85 per cent increase in revenue for the quarter ending March 31, 2020.
Total revenue for the quarter jumped to C$5.57 million from around $3 million in the first quarter of 2019. This was largely attributable to an increased presence on Colorado and Maryland, as well as an increased market share in Michigan, which came from a rapid embracement of the legal recreational market late last year.
In addition, the company renewed its focus on the Californian market, leading to a growth in dispensary penetration.
Gross profit also increased by 65 per cent, from $1.44 million in the first quarter of 2019 to $2.37 million this year. Again, this was driven by increased demand in a number of US states, as well as inventory adjustments and renegotiated contracts.
While Dixie Brands is bracing for narrowing margins as new markets begin to open, these are ultimately expected to improve as efficiencies and economies of scale are realised.
Notably, net loss for the quarter fell to $2.89 million from $8.97 million last year, which was a direct result of the company’s “Path to Profitability” strategy implemented in the third quarter of 2019.
Chuck Smith, President and CEO of Dixie Brands, said he is proud of the results the company achieved in the first quarter of 2020, especially in light of the impact brought on by the COVID-19 pandemic.
“The fact that Dixie was able to achieve a first-quarter net profitable result, excluding non-cash expenses, a mere six months after deploying our ‘Path to Profitability’ strategy is a testament to the adaptability of our team and the strength and resilience of our wonderful portfolio,” he added.
Shares in Dixie Brands (DIXI.U) are currently suspended, and last traded at a price of 13.5 cents.