Rubicon Organics brought in $13.5 million in net revenue in Q3 2024, the three months ended September 30, 2024, its highest revenue in eight consecutive quarters, but a net loss of $168,498.
Net revenue was up compared to the same period in the previous year ($10 million) and the previous quarter ($12.1 million). Net losses have steadily declined over the last three quarters.
The BC-based, certified organic cannabis producer has seen year-over-year quarterly revenue growth from Q1 2022 until Q2 2023, which the company attributes to increased demand in key provinces. In the most recent quarter, for the three months ending September 30, 2024, the company reported its highest net revenue achieved in one quarter.
Rubicon sells three flagship brands: their “super-premium” Simply Bare Organic, premium brand 1964 Supply Co, cannabis wellness brand Wildflower, and the Homestead Cannabis Supply brand. The company says it currently has over 294 unique SKUs available for sale across Canada, with over 99% coverage of the addressable market in both non-medical and medical sales channels.
Total operating expenses increased year-over-year from $3.4 million to $3.7 million, but general and administrative expenses decreased by $19,887. The company expects to continue its year-over-year growth in net revenue, much of it from its branded products that are produced using external capacity and thereby deliver lower gross margins.
In the last two quarters of 2023, Rubicon saw a decline in net revenue, which it says is due to softened demand and price compression in Alberta, Ontario and Quebec, as well as overall economic challenges facing consumers.
The company incurred $4.3 million in excise taxes from $17.8 million in product sales, up from $2.9 million in excise taxes from $13 million in sales in the three months that ended September 30, 2023.
“Rubicon Organics record net revenue for both Q3 and year-to-date 2024 reflects our strength and position as Canada’s leading premium House of Brands,” said company CFO Janis Risbin. “Rubicon Organics continues to innovate and expand our product offerings, solidifying a strong market share in premium flower, pre-rolls, edibles, and more. I’m particularly proud of the success of our 2024 vape launch, which has already achieved 55% distribution in just six months. Looking ahead, we expect to drive further growth in Canada and beyond, as we intend for new market entry in 2025.”
Rubicon’s 125,000-square-foot hybrid greenhouse is certified by the Fraser Valley Organic Producers Association (FVOPA) for organic cannabis cultivation.