Good Shroom Reports Q3, Revenue Dips 10.3% YoY, Net Profit Still Positive

Montreal-based company, The Good Shroom MUSH, announced its financial results for the quarter ended on April 30, 2024. The report includes results for the subsidiary Teonan Biomedical Inc.

“The consistent profitability this quarter, despite a challenging market, highlights our focused execution and strategic adaptations,” stated Eric Ronsse, CEO. This quarter marks the company’s fifth consecutive profitable quarter, emphasizing its resilience and operational efficiency.

Year-Over-Year Financial Highlights:

• Gross Revenue: The company reported a slight decrease in quarterly sales, amounting to $1,135,991 compared to $1,266,186 in the same quarter last year. This marks a decrease of approximately 10.3%
• Net Profit: There was an improvement in net profitability. Net profits rose to $30,840 from $13,660 the previous year, reflecting an effective cost-cutting strategy.

“The slight drop-off in sales can be explained by less overall demand resulting from price competition and increased product assortment” reads the Management Discussion & Analysis report.

Operational Highlights:

• Cannabis products accounted for 96% of revenue and the company continues to lead with innovation, notably in its development of THC-infused pouches. This product is aimed at offering a competitive edge in the market. It also leverages a popular consumption method akin to nicotine pouches, but with THC. This Innovation could position The Good Shroom Co. as a pioneer in this segment.
• The emphasis on strategic growth is reflected in the decision to expand beyond Quebec, where 90% of their sales for the quarter happened.
• The Good Shroom owes no outstanding excise taxes or debt, which is an outstanding issue for other companies in Canada.

Read also: Tax Debt Crisis: Struggling Cannabis Producers In Canada Pushed To Breaking Point

Stock Options For Board Members

On June 20, 2024, The Good Shroom Co issued stock options to each board member and the CFO. Stocks totaled 100,000, with an exercise price set at $0.11 per share. Value corresponds to the closing price of stocks on the TSX Venture Exchange as of June 19, 2024. These options are set to expire on June 19, 2032.