Canadian Cannabis Producer Cannara Reports 43% YoY Revenue Growth, Boosts Market Share And Profitability

Vertically integrated cannabis producer Cannara Biotech Inc. (TSXV:LOVE) (OTCQB:LOVFF) (FRA: 8CB0) announced its fourth quarter and full fiscal 2024 financial and operating results on Monday ended Aug. 31.

The Montreal-based company revealed a 43% year-over-year revenue growth in 2024 to CA$82.2 million ($58.8 million).

Gross profit for the full year grew by 32% over the same period, reaching CA$27.9 million, with a gross margin of 34% before fair value adjustments.

Positive operating cash flow increased by 81% to CA$10.7 million, while free cash flow turned positive at CA$3.2 million, a CA$7.2 million turnaround from 2023.

"Fiscal 2024 was a transformative year for Cannara, showcasing the resilience of our business model and the strength of our execution strategy," said Zohar Krivorot, president and CEO. "With a 3.2% national market share and a leading position in Québec, we have proven our ability to deliver sustained growth in a challenging cannabis market. By investing in our state-of-the-art production facilities, powered by the lowest-cost electricity in the country, we continue to produce premium cannabis products at an unmatched value."

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Q4 2024 Financial Highlights

Revenue saw a 28% increase year-over-year, totaling CA$23.4 million.
Gross profit before fair value adjustments was CA$7 million, a 2% year-over-year increase. The gross profit percentage before fair value adjustments was 30%. Gross profit after fair value adjustments was 46%.
Operating income was CA$5 million, compared to operating income of CA$5.8 million in the same quarter of 2023.
Adjusted EBITDA came in positive at CA$3.7 million or 16% of net revenues compared to an adjusted EBITDA gain of CA$4.9 million in the same period of the prior year.
Net income totaled CA$5.8 million compared to CA$ 4.6 million in the prior year's period.
Positive operating cash flows of CA$3.2 million, compared to CA$2.9 million in the same period of fiscal 2023.
Free cash flow increased to CA$2.7 million from CA$1.1 million in the fourth quarter of 2023, representing a year-over-year increase of 143%.

FY 2024 Financial Highlights

Operating income was CA$10.1 million, compared to operating income of CA$11.9 million for 2023.
Adjusted EBITDA amounted to CA$15.1 million, representing a 10% increase compared to the prior year.
Net income was CA$6.4 million, compared to CA$6.9 million in 2023.
The company's national market share rose to 3.2% in the fourth quarter, up from 2.3% in the same period of 2023.
Cannara also saw strong growth in Québec, with market share increasing to 12.6% in October.

Outlook

Cannara reported that it plans to launch over 20 new products in fiscal 2025, with innovative formats like all-in-one vape devices and premium infused pre-rolls.

For fiscal 2025, the company aims to activate two more zones, adding 50,000 sq. ft. of active canopy, while its 24-zone facility allows scalable production in lockstep with demand.

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Cannara Biotech Reports 51% YoY Revenue Increase In Q2, Wider Net Loss

LOVEThe Lovesac Co

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LOVFFCANNARA BIOTECH INC by Cannara Biotech Inc.

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