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Quebec-based Cannara Biotech Inc. saw gross cannabis revenues before excise taxes increased to $26.3 million in Q2 2024, up from $15.9 million in Q2 2023.
The cannabis producer owns and operates two cannabis facilities in Quebec located in Farnham and Valleyfield. Both facilities have the combined potential to produce approximately 33,500 kg of cannabis per year, a 50% increase in production capacity over the prior year.
The company sold under the brands Orchid CBD, Nugz, and Tribal in Quebec, Ontario, Saskatchewan, Alberta, and British Columbia in Q2 2024. In March 2024, Cannara received permission to list products in Manitoba, which it expects to launch in Q3 2024. In April, it launched products in Nova Scotia.
In Q2 2024, Cannara generated $19.7 million of net revenue, a gross profit before fair value adjustments of $7.1 million or 36% of net revenues, an adjusted EBITDA of $3.5 million or 18% of net revenues, a net loss of $3.4 million, free cash flow of $1.2 million and a loss per share of $0.04. The company trades on the TSX Venture Exchange under the symbol “LOVE,” the OTCQB under the symbol “LOVFF”, and the Frankfurt Stock Exchange under the symbol “8CB0.”
Cannara reported $7.5 million in excise taxes on its $26.3 million in gross revenue from its cannabis operations for the three months ending February 29, 2024, and net revenue of $18.7 million. Net loss was $3.4 million in Q2 2024 compared to $618,055 in Q2 2023.
Adjusted EBITDA increased by 8.7%, from $3.2 million in Q2 2023 to $3.5 million in Q2 2024. Free cash flow for Q2 2024 increased to $1.2 million from $(1.3) million in Q2 2023.
“This past quarter, despite a challenging market environment, Cannara continued to demonstrate continued positive execution towards becoming one of the leading cannabis companies in Canada,” said Zohar Krivorot, President & CEO. “With our tenth grow zone now operational, our annual production capability has increased to 33,500 kg, underlining our dedication to increasing capacity to meet the growing market demand for our product.
“Our footprint is expanding robustly across Alberta and BC, bolstered by the introduction of new SKUs and the approval from the Manitoba Liquor & Lotteries Corporation, paving the way for a stronger market presence in Q3 2024. The outpouring of positive feedback from our diverse clientele across Canada reaffirms our success in delivering unparalleled premium quality at affordable pricing. My gratitude goes to our dedicated team, whose relentless pursuit of operational excellence positions Cannara on our strategic objective of becoming Canada’s premier cannabis producer.”
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