LEEF Brands Cannabis Co. Is Cash Flow Positive For Third Consecutive Quarter, Reduced Net Loss

Canadian cannabis operator, LEEF Brands LEEF LEEEF reported its financial results Thursday for the three and six months ended June 30, 2024. The British Columbia-based company posted quarterly net sales of $7.9 million, compared to net sales of $9.3 million in the same period last year.

"Our financial results reflect a continued focus on operational efficiency and cost control," stated Kevin Wilson, chief financial officer. "We are proud to report that the company was cash flow positive from operations for the third consecutive quarter. Additionally, Adjusted EBITDA, which includes only the addition of stock compensation expense and the gain on the extinguishment of debt, remains positive, highlighting the profitability of our core business operations. Despite the ongoing challenges in the California cannabis market, we are confident in our strategic approach and committed to sustaining our financial momentum."

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Q2 Financial Highlights:

• Gross profit was $2.7M for the three months ended June 30, 2024, which compares to $2.9 million in the same quarter of 2023.
• The gross margin was 34.0%.
• Net loss amounted to $3.9 million, compared to $20.3 million in the second quarter of 2023.
• Adjusted EBITDA of $437,138 for the three months ended June 30, 2023, compares to adjusted EBITDA of $293,268 in the same period of the prior year.

"Our goal is the be the best concentrate provider in the state and we will achieve this by continuing to focus on customer service, putting out quality products, and maintaining the relentless pursuit of getting better everyday,” CEO Micah Anderson stated. “With the comment period now closed for the rescheduling of cannabis, we are hopeful for favorable news in the coming months, which could significantly impact our operations and the broader industry."

Price Action

LEEF shares closed Thursday market session 6.67% lower at $0.0070 per share.

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Photo: Courtesy of C.Aphirak via Shutterstock