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Supreme Cannabis Reports Q2 Revenue Growth, Posts Adjusted EBITDA Of $3.6M

February 12, 2021 11:59 am
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Supreme Cannabis Reports Q2 Revenue Growth, Posts Adjusted EBITDA Of $3.6M

The Supreme Cannabis Company Inc. (TSX:FIRE) (OTCQX:SPRWF) has generated roughly $21.7 in gross revenue and $18.3 million in net revenue in the second quarter of fiscal 2021.

Over the same period, recreational net revenue increased 70% to $12.7 million. Wholesale net revenue, including the international medical cannabis segment, rose 28% quarter-over-quarter to $5.6 million.

Supereme president and CEO Beena Goldenberg attributed revenue growth to distribution gains, improved fulfillment and "an overall strengthening of our internal processes."

Goldenberg joined the Toronto-based company in April.

Here's a breakdown of what the Q2 earnings report showed:

  • Positive Adjusted EBITDA (a Non–GAAP measure) amounted to $3.6 million versus a positive adjusted EBITDA of roughly $0.26 million
  • Adjusted gross margin was 49% compared to 53% in the prior period
  • At the quarter's end, the company had $20.4 million in cash and a working capital surplus of $43.1 million

Last month, Supreme boosted its balance sheet by launching a public offering of 105.26 million units at 19 cents per unit for gross proceeds of roughly $20 million.

"As we continue our transformation into a premium cannabis CPG company, we remain committed to the continuous improvement and maturation of our internal processes and will keep offering compelling brands and high-quality products at several points of value and preference," Goldenberg stated.