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BC-based cannabis producer Rubicon Organics Inc. reported an increase in net revenue and a decrease in net profit in its recent year-end results for 2023.
The cannabis cultivator reported $40.1 million net revenue in 2023, a 13% increase from 2022, and gross profit after fair value adjustments of $13.1 million, about a 5% decrease from 2022.
The fourth quarter of 2023 saw $5 million in operating cash flow, the sixth consecutive quarter of operating cash flow positive.
The company also reported a $1 million loss in operations, down from a nearly $2.6 million loss in 2022 and $13.2 million loss in operations in 2021.
After adding IFRS fair value accounting related to cannabis plants and inventory, depreciation and amortization, and Share-based compensation expense, the company’s adjusted EBITDA for 2023 was $4.3 million
“I am pleased to announce that Rubicon has attained its seventh consecutive quarter of positive Adjusted EBITDA and sixth consecutive quarter of positive operating cashflow,” said Janis Risbin, CFO, in a press release. “Despite the challenges faced in the latter half of 2023 due to competitive pricing pressures in the Canadian cannabis sector and broader negative macroeconomic factors affecting Canadian consumers, we are optimistic about the prospects in 2024. With Rubicon’s prominent position as a leading force in the premium cannabis market, I am enthusiastic about the opportunities that lie ahead.”
The company, which sells certified organic products in several provincial markets, launched several new products in 2023, including its first entry into the edibles category, through a co-manufacturing relationship with 1964 Supply Co. live rosin edibles in Ontario, BC and Alberta. These edibles were Canada’s first single-strain live rosin edibles and are vegan and gluten-free.
One of Rubicon’s brands, Wildflower, also launched its first edibles in October 2023, which contain the minor cannabinoids CBN, CBG and CBD, as well as full spectrum THC live rosin. It also released topical products like Wildflower Extra Strength Relief Stick and Wildflower 1:1 CBD:THC Relief Stick.
The company also plans to enter the vape market by taking advantage of additional biomass from its contract-grow strategy launched in 2023, which saw its genetics being grown outside its own facility.
Rubicon reported a 2.1% national market share of flower and pre-rolls, a 21.8% national market share of topical products, and a 15.2% national market share of premium concentrates, based on data from Hifyre.
More information from Rubicon’s March report here.
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