- Record Revenue: Net revenues of $25.1 million in Q1 2025, a 29% increase compared to $19.5 million in Q1 2024, driven by strong demand for Cannara’s premium-grade cannabis products.
- Record Market Share: Achieved Canadian market share of 4.1%1, representing a 28% increase quarter over quarter, and 58% increase over the same period of prior year with gains across all licensed provinces.
- Robust Profitability: Gross profit before fair value adjustments grew 23% to $9.8 million in Q1 2025 from $7.9 million in Q1 2024, with gross profit margins improving to 39%.
- Industry Leading Operational Excellence: Delivered fifteenth consecutive quarter of positive Adjusted EBITDA2, generating a Company record of $6.0 million, in addition to record-high operating cash flow of $5.8 million, compared to $0.8 million in Q1 2024, and record free cash flow2, of $4.6 million compared to $(2.0) million in Q1 2024.
- Strategic Growth Ahead: Plans to activate two additional grow zones and launch over 20 innovative new products in 2025, positioning the Company for continued leadership in the Canadian cannabis market.
MONTREAL, QUÉBEC – January 27, 2025 – Cannara Biotech Inc. (“Cannara”, “the Company”, “us” or “we”) (TSXV: LOVE) (OTCQX: LOVFF) (FRA: 8CB0), a vertically integrated producer of premium-grade cannabis products at affordable prices with two mega facilities based in Québec spanning over 1,650,000 sq. ft., today announced its fiscal first quarter 2025 financial and operating results for the three-month period ended November 30, 2024. The condensed interim consolidated financial statements three-month period ended November 30, 2024, and the accompanying Management’s Discussion and Analysis can be accessed by visiting the Company’s website at investors.cannara.ca, or by accessing the Company’s SEDAR+ profile at www.sedarplus.ca.
“I am pleased to report to our shareholders that our Q1 2025 results delivered the strongest quarter in Company history, producing Company records for market share, revenue, adjusted EBITDA, operating cash flow, and free cash flow showcasing our successful execution of our long-term business strategy and industry leadership,” stated Zohar Krivorot, President & Chief Executive Officer of Cannara. “Net revenues grew by 29% to $25.1 million compared to Q1 2024, marking the highest quarterly revenue in our history. During the quarter, we achieved record market share, increasing our Canadian market share by 28% to 4.1%, with notable gains across all provinces where we are licensed to sell. These results highlight the growing adoption of our premium-grade cannabis products and the strong execution of our sales and marketing strategies.”
“As we look ahead to 2025, we are excited to continue building on this momentum with plans to open two new growing zones increasing our capacity by 6,000 kg per year and introduce over 20 products in existing and previously unmet product segments. Our expanding capacity and these product launches position us to capitalize on increasing consumer demand for our brands, while further solidifying our leadership in the Canadian cannabis market. We remain committed to driving sustainable revenue growth, scaling our production capabilities, and delivering exceptional value to our customers and stakeholders,” concluded Mr. Krivorot.
“Our record-breaking financial performance in Q1 2025 highlights the strength of Cannara Biotech’s operational model and our unwavering commitment to disciplined cost management and operational efficiencies while continuing to profitably grow the business,” commented Nicholas Sosiak, Chief Financial Officer of Cannara. “Gross profit before fair value adjustments increased by 23% to $9.8 million in Q1 2025, compared to $7.9 million in Q1 2024, driven by expanded production capacity, higher yields, and lower production costs. Gross profit margins also rebounded significantly due to improved cannabis yields, reflecting the long-term targets we strive to achieve, increasing from 30% in Q4 2024 to 39% in Q1 2025.”
“We delivered our fifteenth consecutive quarter of positive Adjusted EBITDA, totaling a record-high of $6.0 million, underscoring the scalability and profitability of our operations. Operating cash flow surged to $5.8 million, up significantly from $0.8 million in Q1 2024, and we delivered record-high free cash flow of $4.6 million, up from $(2.0) million in Q1 2024. This industry leading profitability profile reflects our extremely focused leadership, best-in-class production facilities, and many inherent competitive advantages within our operating platform, and will allow us to further strengthen our financial position.” concluded Mr. Sosiak.
Q1 2025 FINANCIAL HIGHLIGHTS
Click here to review our full press release on Q1 2025 earnings.
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 news release may contain “forward-looking information” within the meaning of Canadian securities legislation (“forward-looking statements”). These forward-looking statements are made as of the date of this MD&A and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements with respect to the anticipated benefits of DTC eligibility of the Common Shares and the completion of the Olymbec Share Issuance.
Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, the Company and its operations, its projections or estimates about its future business operations, its planned expansion activities, anticipated product offerings, the adequacy of its financial resources, the ability to adhere to financial and other covenants under lending agreements, future economic performance, and the Company’s ability to become a leader in the field of cannabis cultivation, production, and sales.
In certain cases, forward-looking statements can be identified by the use of words such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “occur” or “be achieved” or the negative of these terms or comparable terminology. In this document, certain forwardlooking statements are identified by words including “may,” “future,” “expected,” “intends” and “estimates.” By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in, or implied by, such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors which are discussed in greater detail under “Risk Factors” in the Company’s AIF available on SEDAR+ at www.sedarplus.ca and under the “Investor Area” section of our website at https://www.cannara.ca/en/investor-area.
Other risks not presently known to the Company or that the Company believes are not significant could also cause actual results to differ materially from those expressed in its forward-looking statements. Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, readers are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information. Certain assumptions were made in preparing the forward-looking information concerning the availability of capital resources, business performance, market conditions, as well as customer demand. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and we do not undertake to update or amend such forward looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.