Decibel Cannabis Achieves Record Revenue Of $20M In Q1, What About Profit?

Decibel Cannabis Company Inc. DBCCF DB released its interim financial results for the three month period ending March 31, 2023, revealing record net revenue was CA$27.1 million ($20 million) in the first quarter of 2023, with sequential growth of 5% over the prior quarter, despite seasonal weakness, and year over year growth of 63%. Net revenue improvement was driven by continued growth in demand for derivative products, expanded operational capacity, and expanded distribution.

Q1 2023 Financial Highlights

• Gross profit was CA$9.4 million, an increase of 204.5% compared to CA$3.1 million in Q1 2022.

• Gross profit margin was 34.8% compared to 18.6% in Q1 2022.

• Net loss and comprehensive loss was CA$569,000 compared to a loss of CA$4.4 million in Q1 2022.

• Adjusted EBITDA of CA$6.8 million in the first quarter of 2023, with a sequential decline of 4% over the prior quarter and year over year growth of 175%. This marks Decibel's eleventh quarter of consecutive quarterly positive adjusted EBITDA.

• Cash at the end of the period was CA$3.9 million.

"We've started the year off with another strong quarter that represents both significant year over year acceleration as well as sequential growth." stated Paul Wilson, CEO of Decibel. "Our new, unique and innovative products, assortments and formats continue to resonate with both new and existing customers. This provides ample momentum as we approach a number of material and additional catalysts this summer, when we expect to build market share and brand position in Canada, and in turn continue to leverage our business internationally".

Photo by Giorgio Trovato on Unsplash

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