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Published: May 30, 2024
Nextleaf Solutions Ltd., a leading life science firm and licensed cannabis processor, is pleased to release its financial results for their second quarter ended March 31st, 2024. The Company achieved sequential revenue growth, a record $3.4 million net revenue, and an adjusted EBITDA[1] of $232,682.
Highlights
- Achieved gross margins of 28% in Q2 FY2024, up from 20% in Q2 FY2023.
- Net revenue grew by 7% to $3.4 million compared to the previous quarter and by 57% compared to Q2 FY2023. Revenue growth attributed to steady product innovation with 9 product launches in this quarter.
- The reported Loss of $1.01M for the quarter was primarily attributed to a non-cash charge related to a Share-Based Compensation expense.
- For the six months ended Q2-2024, the Company achieved an Adjusted EBITDA[2] of $554,638, marking a significant improvement compared to a loss of $201,951 in the same period of the previous year.
- Further strengthened its balance sheet by reducing its CRA liability by $740,000.
- Strong performance across all cannabis softgel and THC Oil SKUs with 21% and 32% growth rates respectively.
- Successful first shipment of white label vapes for a new commercial partner.
- The Company issued shares and stock options as part of an employee retention and incentivization initiative, with employees voluntarily electing to receive share payments instead of cash – demonstrating strong corporate alignment and dedication.
- New category launch of Glacial Gold MAX THC Infused Pre-rolls into major markets including BC, Alberta, and Ontario.
- 9 new product launches this quarter:
- Glacial Gold Balanced 10:10 Softgels 100-pack
- Glacial Gold CBD 50 Softgels 100-pack
- Glacial Gold MAX THC Grape Escape Double D Infused Pre-rolls 3×0.7g
- Glacial Gold MAX THC Cherry K.O. Double D Infused Pre-rolls 3×0.7g
- Glacial Gold MAX THC Blueberry Dream Hybrid Vape 1.2g
- Glacial Gold MAX THC Kush Mintz Hybrid Vape 1.2g
- Glacial Gold HIGH THC Berry Blotto Vape 1g
- High Plains 1000mg Indica THC Oil Drops 35ml
- High Plains 2000mg Balanced Oil Drops 35ml
“We have been diligently focused on executing our commercialization roadmap and product pipeline throughout this past quarter. We’ve made strategic investments into building up our inventory to strengthen our position, boost commercialization efforts, and expand territory sales,” shares Emma Andrews, Interim CEO. “We’re excited about the growth we’re seeing across our key categories, and we are motivated to continue setting the standard for unparalleled value.”
2024 Outlook
The Company will prioritize the following strategic initiatives throughout the third and fourth quarters FY2024:
- Brand Building & Marketing: Implementing strategic marketing campaigns and activations to elevate brand awareness and recognition among Canadian consumers.
- Increasing Points of Distribution: Expanding the number of distribution points within core markets and strengthening retailer relationships.
- Commercialization & Product Development: 12 new SKUs nationally.
- Inventory Building: Continued investment into building up inventory, including biomass procurement, through to finished products.
- Operational Efficiency: Improving operational efficiency through the integration of an ERP system.
- Commercial Partners Program Expansion: achieved through ingredient supply, white labeling, contract manufacturing, and toll processing activities for new and recurring clients.
About Nextleaf Solutions Ltd.
Nextleaf® is an innovative cannabis processor with a portfolio of federally regulated emerging consumer brands, market validated cannabis derivative products, and high-potency bulk ingredients. Nextleaf’s multi-patented, highly automated, closed loop extraction, and distillation technology sets the global standard for processing cannabis at scale.i
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