INVEST IN THE CANNABIS INDUSTRY WITH CANNARA
We’re changing the narrative in the industry;
We offer premium cannabis, grown from rare genetics, hand-trimmed then slow cured and sold at disruptively low pricing.
We’ve rapidly emerged as one of Quebec’s fast-growing producers and we’ve got a bright future ahead of us.
THIRD QUARTER FINANCIAL HIGHLIGHTS:
- Gross cannabis revenues before excise taxes increased to $26.2 million in Q3 2024 from $20.6 million in Q3 2023, a $5.6 million or 27.6%, increase. The increase is attributable to Cannara’s entrance into new provinces in Canada, as well as the launch of several new SKUs and sales generated from the wholesale market.
- Total revenues, net of excise taxes, increased to $19.5 million in Q3 2024 from $15.9 million in Q3 2023, a $3.6 million or 22.6% increase.
- Gross profit, before fair value adjustments, decreased to $5.7 million in Q3 2024 from $6.1 million in Q3 2023, representing a 6.1% decline. This decrease was primarily due to a reduction in yields resulting from cultivation changes implemented during Q2 2024, which impacted the cost of goods sold in Q3 2024. During the quarter, the Company reversed these changes and focused on stabilizing its production yields, successfully restoring them to previous levels. Cannara is dedicated to advancing research and development, harnessing our expertise to strengthen the knowledge and core competencies in large-scale cannabis production. Through these ongoing investments, we aim to consistently elevate our cultivation techniques, maximize production yields, and enhance the overall quality of our products.
- Gross profit percentage before fair value adjustments in Q3 2024 was 29% compared to 38% in Q3 2023.
- Operating income of $3.6 million in Q3 2024 compared to $4.3 million in Q3 2023, mainly due to an increased costs of goods sold this quarter as mentioned above, as well as increases in selling and marketing expenses to promote and grow our market share across Canada. These impacts were reduced by a gain of $2 million resulting from the sale of a parcel of unused land at the Valleyfield site.
- Net income was of $2.0 million in Q3 2024 compared to $2.9 million in Q3 2023, as a result of the items mentioned above.
- Adjusted EBITDA of $2.8 million in Q3 2024, compared to $3.9 million in Q3 2023.
- The Company generated operating cash flow amounting to $4.3 million in Q3 2024 compared to $2.5 million in Q3 2023, an increase of 72%.
- Free cash flow for Q3 2024 increased to $1.2 million from ($37,000) in Q3 2023.
- Generated earnings per share of $0.02 in Q3 2024 compared to $0.03 in Q3 2023.