Ms. Emma Andrews reports
NEXTLEAF SOLUTIONS REPORTS RECORD REVENUE $3.4 MILLION IN SECOND QUARTER 2024 FINANCIAL RESULTS
Nextleaf Solutions Ltd. has released its financial results for its second quarter ended March 31, 2024. The company achieved sequential revenue growth, a record $3.4 million net revenue, and an adjusted EBITDA[1] of $232,682.
Highlights
Achieved gross margins of 28% in Q2 FY2024, up from 20% in Q2 FY2023.
Net revenue grew by 7% to $3.4 million compared to the previous quarter and by 57% compared to Q2 FY2023. Revenue growth attributed to steady product innovation with 9 product launches in this quarter.
The reported Loss of $1.01M for the quarter was primarily attributed to a non-cash charge related to a Share-Based Compensation expense.
For the six months ended Q2-2024, the Company achieved an Adjusted EBITDA[2] of $554,638, marking a significant improvement compared to a loss of $201,951 in the same period of the previous year.
Further strengthened its balance sheet by reducing its CRA liability by $740,000.Strong performance across all cannabis softgel and THC Oil SKUs with 21% and 32% growth rates respectively.
Successful first shipment of white label vapes for a new commercial partner.
The Company issued shares and stock options as part of an employee retention and incentivization initiative, with employees voluntarily electing to receive share payments instead of cash - demonstrating strong corporate alignment and dedication.
New category launch of Glacial Gold MAX THC Infused Pre-rolls into major markets including BC, Alberta, and Ontario.
9 new product launches this quarter:
- Glacial Gold Balanced 10:10 Softgels 100-pack
- Glacial Gold CBD 50 Softgels 100-pack
- Glacial Gold MAX THC Grape Escape Double D Infused Pre-rolls 3x0.7g
- Glacial Gold MAX THC Cherry K.O. Double D Infused Pre-rolls 3x0.7g
- Glacial Gold MAX THC Blueberry Dream Hybrid Vape 1.2g
- Glacial Gold MAX THC Kush Mintz Hybrid Vape 1.2g
- Glacial Gold HIGH THC Berry Blotto Vape 1g
- High Plains 1000mg Indica THC Oil Drops 35ml
- High Plains 2000mg Balanced Oil Drops 35ml
"We have been diligently focused on executing our commercialization roadmap and product pipeline throughout this past quarter. We've made strategic investments into building up our inventory to strengthen our position, boost commercialization efforts, and expand territory sales," shares Emma Andrews, Interim CEO. "We're excited about the growth we're seeing across our key categories, and we are motivated to continue setting the standard for unparalleled value."
2024 Outlook
The Company will prioritize the following strategic initiatives throughout the third and fourth quarters FY2024:
- Brand Building & Marketing: Implementing strategic marketing campaigns and activations to elevate brand awareness and recognition among Canadian consumers.
- Increasing Points of Distribution: Expanding the number of distribution points within core markets and strengthening retailer relationships. Commercialization & Product Development: 12 new SKUs nationally.
- Inventory Building: Continued investment into building up inventory, including biomass procurement, through to finished products.
- Operational Efficiency: Improving operational efficiency through the integration of an ERP system.
- Commercial Partners Program Expansion: achieved through ingredient supply, white labeling, contract manufacturing, and toll processing activities for new and recurring clients.
About Nextleaf Solutions Ltd.
Nextleaf is an innovative cannabis processor with a portfolio of federally regulated emerging consumer brands, market validated cannabis derivative products, and high-potency bulk ingredients. Nextleaf's multi-patented, highly automated, closed loop extraction, and distillation technology sets the global standard for processing cannabis at scale.
The Company currently manufactures over 80 different products, across 4 categories for white label clients and house brands. Formulated products and bulk ingredients are sold domestically to B2B partners and exported to applicable international jurisdictions. With coast-to-coast distribution, Nextleaf brands are sold through both medical and recreational channels and includes acclaimed legacy-era brand Glacial Gold, and High Plains Cannabis.
Nextleaf's commitment to constant innovation, and speed-to-market advantage is guided by their team's unique depth of industry experience, complimented by their Health Canada Research License allowing for unique sensory evaluation of cannabis via human trials, and rapid prototyping. The Company has been issued 19 U.S. patents, and 75+ patents globally, on cannabinoid processing including extraction, distillation, and acetylation.
Nextleaf trades as OILS on the Canadian Securities Exchange, OILFF on the OTCQB Market in the United States, and L0MA on the Frankfurt Stock Exchange.
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