Nextleaf's Q2 Net Revenue Up 57% YoY, Reports Growth Across 'Key Categories'

Cannabis processor Nextleaf Solutions Ltd. OILS OILFF (FSE: L0MA) reported its financial results on Wednesday for the second quarter ended March 31, 2024.

The Vancouver-based company said it has achieved 7% sequential and 57% year-over-year revenue growth, hitting a record CA$3.4 million ($2.5 million) in net revenue.

“We have been diligently focused on executing our commercialization roadmap and product pipeline throughout this past quarter," Emma Andrews, the company's interim CEO said. "We’ve made strategic investments into building up our inventory to strengthen our position, boost commercialization efforts, and expand territory sales. 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.”

Q2 2024 Financial Highlights

• Gross profit was CA$950,516, compared to CA$448,015 in the prior year’s period.
• Achieved gross margins of 28%, up from 20% in the corresponding quarter of 2023.
• The reported loss of CA$1.01 million was primarily attributed to a non-cash charge related to a share-based compensation expense, and it compares to CA$25,168 loss in the prior year’s period.
• For the six months ended Q2-2024, the company achieved a positive adjusted EBITDA of CA$554,638, marking an improvement compared to a loss of CA$201,951 in the same period of the previous year.
• Further strengthened its balance sheet by reducing its CRA liability by CA$740,000.

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Other Quarterly Highlights

• Nextleaf 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.
• New category launch of Glacial Gold MAX THC Infused Pre-rolls into major markets including BC, Alberta, and Ontario.
• Nine new product launches.

OILFF Price Action

Nextleaf's shares traded 7.23% lower at $0.102 per share at the time of writing on Wednesday morning.

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