This post is presented by our media partner Stratcann
View the original article here.
Simply Solventless Concentrates, Ltd. brought in net revenue of nearly $5 million for the three months ended September 30, 2024 (Q3 2024), with gross profits of almost $2 million and $424,446 in net and comprehensive income.
Gross revenue for the Calgary-based company increased 70% from the previous quarter (Q2 2024), net revenue increased 71%, and gross margins increased 14%.
Year-over-year, net revenue increased by about 75% from $1.3 million in Q3 2023, while gross profit increased by approximately 72% from $547,009. Net income increased by about 71% from $121,216 in Q3 2023.
This most recent quarter for Simply Solventless Concentrates (SSC) Q3 2024 is the first quarter to include the operations of CannMart Inc., which SSC acquired on September 12, 2024.
On September 25, SSC also announced plans to acquire ANC Inc., another Alberta-based cannabis company focusing on pre-roll manufacturing. However, the deal didn’t close until October 18, 2024, excluding it from the most recent quarterly report ending September 30.
Jeff Swainson, President & CEO of SSC, stated: “Q3 2024 was another transformational quarter for SSC as we closed an oversubscribed $3.85 million financing, closed the CannMart acquisition, integrated CannMart’s operations, announced the acquisition of ANC, and again exceeded quarterly guidance. In the last three quarters we have profitably increased gross revenue from $7.0 million in the fiscal year 2023 to $28.6 million annualized in Q3 2024, a growth rate of 309%, with annualized Q3 2024 NNI of $0.06 per share. More importantly, we are working hard to achieve another strong quarter in Q4 2024, which will include the operations of both CannMart and ANC. We will issue Q4 2024 guidance in the near future.”
ANC was first licensed as a micro cultivator in 2019 and later received its micro processing licence. The company then scaled up to a standard licence, focusing on seed production and pre-roll manufacturing, something they have become well-known for in the industry. The acquisition will give SCC the ability to manufacture pre-rolls in-house, giving the parent company a new avenue for its own products to reach consumers.
SCC is known for brands like Astrolab and Frootyhooty. CannMart has operated as CannMart, CannMart Marketplace, CannMart Labs, 1000501971 Ontario Inc (Zest), and CannMart MD. Net revenue from CannMart in 2023 was $13.5 million, which came from sales to its major wholesale customers, but it reported a net loss of $6.3 million.
This post was originally published by our media partner here.