Cannara Biotech Reports Strong Financial Results for Q2 FY2024
Cannara Biotech Inc. (LOVE LOVFF 8CB) announced its financial and operating results for the second quarter and first half of fiscal year 2024, ending February 29, 2024. The company reported a significant increase in revenue, gross profit, and adjusted EBITDA, demonstrating its continued growth and market leadership in Canada.
Revenue: Total net revenue for the second quarter was CA$19.7 million ($14.4 million), a 68% increase year-over-year. For the first half of the fiscal year, total revenue reached CA$39.1 million, up from CA$23.3 million in the same period last year.
Gross profit before value adjustments for the second quarter was CA$7.1 million, compared to CA$4 million in the second quarter of fiscal 2023. Adjusted EBITDA for the quarter was CA$3.5 million, marking the twelfth consecutive quarter of positive adjusted EBITDA. For the first half of the year, gross profit before value adjustments was CA$15 million, and adjusted EBITDA reached CA$8.7 million.
Operating expenses for the second quarter were CA$6.1 million, up from CA$3.6 million in the prior year's period. For the first half of the year, operating expenses totaled CA$10.9 million, compared to CA$7.3 million in the same period last year.
Net loss for the second quarter was CA$3.4 million, compared to a net loss of CA$618,055 in the prior year's period. For the first half of the year, net loss was CA$1.3 million, compared to a net loss of CA$615,104 in the same period last year.
As of February 29, 2024, Cannara Biotech had total assets of CA$145.8 million, up from CA$141.5 million as of August 31, 2023. Total current liabilities amounted to CA$60 million as of February 29, up from CA$21.2 million as of August 31, 2023.
Nicholas Sosiak, CFO of Cannara Biotech, commented on the results, stating that the company's strong performance is a testament to its growing influence in key Canadian markets. He emphasized the company's commitment to streamlining assets and gaining market share to become the leader in Canada, the second-largest cannabis market globally. Sosiak also highlighted the company's long-term vision of becoming a globally recognized brand synonymous with excellence and value in cannabis.
Overall, Cannara Biotech's strong financial results for the second quarter and first half of fiscal year 2024 demonstrate the company's continued growth and leadership in the Canadian cannabis market. The company's commitment to operational efficiency, market expansion, and brand building positions it well for continued success in the future.