Decibel's Revenue Ten-Folds In Q1, Reaching $5M

Decibel Cannabis Company Inc. DB DBCCF released Friday its first-quarter earnings report, posting revenue of $5 million.

Over the year, Decibel's revenue rose by 895%.

The substantial revenue growth reflects contributions from a reverse takeover of Westleaf Inc., which was rebranded as Decibel in March.

"During the first quarter of 2020, we made significant steps towards completing integration and cost saving initiatives, while continuing to progress our large-scale development projects," said CEO Benjamin Sze.

Other highlights from the quarterly earnings report include:

• Negative adjusted EBITDA of $0.4 million versus a loss of $0.1 million in the first quarter of the last year
• Gross profit (before fair value adjustments) of $2.1 million, compared to $0.1 million in the corresponding quarter of 2019
• 224kg of cannabis sold, at $11.85 per gram of flower
• That's an increase of 280% compared to the first quarter of the last year
• Cost savings surpassed $5 million, driven mainly by cost-reduction measures during the quarter

Sze anticipates "to see cost reductions and growth as we operationalize our extraction & manufacturing facility and capture further production efficiencies at our Creston facility."

Last month, Decibel disclosed it is making changes to its credit agreement with ATB Financial.

Shortly after, the company secured an additional $40 million in funding through a Series B investment round.