What To Expect From Decibel Cannabis Co. In 2022: Strategic Priorities, Financial Outlook & More

Decibel Cannabis Company Inc. DB DBCCF provided an update on its strategic priorities and 2022 financial outlook.

Paul Wilson, CEO of the Calgary-based cannabis producer, said Monday that the company has "established a solid foundation through strong execution of our priorities in 2021 and are well-positioned to execute on our 2022 objectives and achieve strong year over year growth in revenue and margins."

Highlights

  • Anticipates achieving a milestone of positive cash flow from operations in the first half of 2022.
  • Strong 2022 drivers are now in place to generate substantial revenue and EBITDA growth.
  • Driving organic growth, targeting 2022 market share growth of over 40% versus 2021.
  • Canadian recreational market forecasted to grow more than 30% over the prior year.
  • Targeting 40 – 45% product gross margin by mid-2022.
  • Repaying its outstanding convertible debentures with low-cost non-dilutive debt capital, resulting in a blended cost of debt capital of less than 5%; and
  • Strengthening balance sheet and financial position with the expectation to reach less than 3.0x debt/trailing twelve-month adjusted EBITDA in 2022.

In addition, the company emphasized its plans to focus on the following four strategic priorities in the coming years:

  • Continue to champion the Qwest Family of Brands as an industry-leading premium brand, which creates a "halo" extending to Decibel's other brands and products;
  • Broaden distribution and enter new markets through a multi-channel and best-in-class sales system;
  • Execute on capital investments and maximize product gross margin through a large scale transition from manual to automation driven production lines; and
  • Establish and refine product differentiation and competitive advantages.

More recent news from Decibel:

DBCCF Price Action

Decibel's shares traded 3.09% lower at $0.1036 per share at the market close on Friday.

Photo: Courtesy of Lukas from Pexels

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Posted In: CannabisEarningsNewsPenny StocksMarketsfinancial outlookPaul Wilson
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