C21 Investments Revenue Grows 9.4% Sequentially, What About Adjusted EBITDA?

C21 Investments Inc. CXXIF CXXI released its interim financial statements for the first quarter ended April 30, 2023, revealing revenue of $7.7 million – up 9.4% sequentially, and an increase of 3% compared to $7.5 million in Q1 FY 2023.

Q1 FY 2024 Financial Highlights

• Gross profit of $2.7 million, a decrease of 31.8% compared to $4 million in Q1 FY 2023.

• Gross margin of 35.4% compared to 53.4% in Q1 FY 2023.

• Adjusted EBITDA of $1.6 million – a 67% increase sequentially, and a 30% decrease compared to $2.3 million in Q1 FY 2023.

• Net loss was $471,045 compared to net income of $306,820 in Q1 FY 2023.

• Cash at the end of the period was $1.8 million.

"We are pleased to again report strong results, with revenue increasing 9.4% over Q4, generating another positive cash flow quarter," stated CEO and president, Sonny Newman. "Despite continued industry headwinds, we experienced a record quarter for our Nevada wholesale sales leading to a strong revenue rebound both sequentially and year-over-year. Our consistent cash flow profile highlights the strength of our brand, customer loyalty, and our ability to mitigate state-level pricing pressures and broader industry challenges. The current capital drought in the industry has forced many of our competitors to focus on deleveraging their balance sheets to generate positive cash flow. This industry shift further validates what has been our long-term strategy and has afforded us the opportunity in Q1 to cancel 4.8 million earn-out shares. We continue to actively assess all strategic opportunities through the lens of creating value for our shareholders."

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