- Record Q4 and year end net revenues of $18.3 million and $57.6 million, representing a 53% and 60% increase compared to the same periods of 2022
- Sequentially, Q4 showed significant growth over Q3 2023 with higher net revenues by 15%, operating income by 36%, Adjusted EBITDA by 26% and net income by 58%
- Delivered a tenth consecutive quarter of positive Adjusted EBITDA of $4.9 million
- Generated a record quarterly net income of $4.6 million and operating cash flows of $2.8 million
All financial results are reported in Canadian dollars, unless otherwise stated.
MONTREAL, QUÉBEC – December 7, 2023 – Cannara Biotech Inc. (“Cannara”, “the Company”, “us” or “we”) (TSXV: LOVE) (OTCQX: LOVFF) (FRA: 8CB0), a vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices with two mega facilities based in Quebec spanning over 1,650,000 sq. ft., today announced its fiscal fourth quarter 2023 financial and operating results for the three and twelve month periods ended August 31, 2023.
“Cannara Biotech isn’t just growing, we’re charting a path of sustained, pro table growth that sets a new standard for the industry,” stated Zohar Krivorot, President & Chief Executive Of cer. 1 “In this dynamic cannabis market, our rapid ascent to having the third-largest market share in Quebec is just the beginning . We’re seeing continued growth in Ontario, Alberta, and British Columbia, and our achievement of activating 9 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.”
“At Cannara, we’re not just focused on growing bigger, we’re focused on growing smarter. Our approach to expansion is underpinned by a robust operational strategy that ensures sustained profitability at each step. This focus has not only positioned us at the high end of profitability compared to our peers but also ensures our capacity to invest in future opportunities. We’re setting a new benchmark in the industry for how to grow profitability and sustainably,” concluded Mr. Krivorot.
“I am excited to share that Cannara has delivered remarkable financial milestones in the fourth quarter and throughout fiscal year 2023,” declared Nicholas Sosiak, CFO of Cannara. “Our net revenues soared by over 50% for both the quarter and the year, reflecting our expanding market reach and operational excellence. The 45% and 91% growth in our Q4 2023 gross pro t and Adjusted EBITDA, respectively, when compared to Q4 2022 for the quarter, as well as an impressive 141% increase in 2023 Adjusted EBITDA over last year, demonstrates the strength of our financial strategy and operational efficiency. The significant increase in our net income, achieving $4.6 million for the quarter and $7 million for the year, validates our effective expansion strategy.
“Our net income growth – 81% for the quarter when compared to Q4 2022 and over 200% for the year compared to last year – signifies more than just numbers. It reflects our strategic vision and the distinct competitive edge we have as a leading Quebec-based producer. Importantly, our fourth quarter showed significant sequential growth over the third quarter of 2023, with higher revenue by 15%, operating income by 36%, Adjusted EBITDA by 26%, and net income by 58%. Looking to 2024, we expect to see these figures grow even further as we continue to increase our market share across Canada. Our positive cash ow situation not only enables us to pursue expansion organically but also allows us to stay committed to providing high-quality, affordable cannabis products. The loyalty of our customers and the consistent demand for our products underscore the excellence of what we offer.”
“Furthermore, our strategic expansion has led to remarkable achievements in key markets. In Ontario, we have increased our market share to rank 9th overall and aim to improve our position further with the increasing popularity of our products. Our progress in Alberta is even more striking, ranking 14 overall in just three months in Alberta since our launch in May 2023 . This remarkable surge underlines our ability to effectively tap into new markets and rapidly gain a foothold. Meanwhile, in Quebec, we continue to uphold our strong leadership position, maintaining our rank as third largest by market share. These successes across various provinces underscore Cannara’s growing influence in the Canadian cannabis industry. As we cement our position as a true player in the market, our trajectory is clearly set towards becoming the leader in this highly competitive landscape,” concluded Mr. Sosiak.
FINANCIAL HIGLIGHTS & SELECTED FINANCIAL INFORMATION
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CONTACT
Nicholas Sosiak, CPA, CA
Chief Financial Officer
nick@cannara.ca
Zohar Krivorot
Founder & Chief Executive Officer
zohar@cannara.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ABOUT CANNARA
Cannara Biotech Inc. (TSXV: LOVE) (OTCQX: LOVFF) (FRA: 8CB0), is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,600,000 sq. ft., providing the Company with 100,000 kg of potential annualized cultivation output. Leveraging Québec’s low electricity costs, Cannara’s facilities produce premium-grade cannabis products at an affordable price. For more information, please visit cannara.ca.
CAUTIONARY STATEMENT REGARDING “FORWARD-LOOKING” INFORMATION
This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.