Canadian Marijuana Company Red White & Bloom Q2 Revenue In Line YoY, Touts 'Notable Strides On Several Strategic Initiatives'

Canadian cannabis company Red White & Bloom Brands Inc. RWB RWBYF reported its financial results for the second quarter ended June 30. The Toronto, Ontario-based operator disclosed revenue of CA$22.0 million ($16.33 million) compared to CA$21.7 million in the same period last year.

“In the second quarter, we made notable strides on several strategic initiatives. We advanced refinancing agreements with our strategic lenders, moved closer to opening five new retail locations in Florida in anticipation of stronger legalization prospects, established key distribution partnerships in California to boost market penetration and strengthened our vendor relationships. Additionally, we worked to mitigate supply chain risks in Michigan by securing value-added crop commitments for quality biomass,” stated company president Colby De Zen.

"These initiatives and investments are expected to drive incremental EBITDA growth in the second half of fiscal 2024. This follows a substantial increase in EBITDA to $7.1 million in the first six months of 2024, representing a year-over-year improvement of over $8 million. Our EBITDA gains for 2024 do not yet include the potential synergies and improvements from the Emblem group of companies which we expect to impact our results in the latter half of the year."

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Q2 Financial Highlights

• Gross profit before fair value adjustments amounted to CA$6.3 million compared to a gross profit of CA$6.5 million in the same period last year.
• Gross profit after fair value adjustments was CA$10.35 million compared to CA$5.88 million.
• Net loss from continuing operations reached CA$10.66 million compared to a net loss of CA$8.73 million in the second quarter of 2023.
• Total operating expenses were CA$11.5 million compared to CA$8.87 million in the corresponding period of the prior year.
• Adjusted EBITDA was a gain of CA$3.6 million compared to an adjusted EBITDA loss of CA$1.97 million.

Read Also: SNDL Wins Bid For Indiva, Secures Major Deal To Boost Cannabis Edibles Market Share In Canada

Recent Operational Highlights

The second quarter operational highlights include a non-dilutive CA$5.8 million mortgage financing in June with a third party Canadian lender and restructuring of its PharmaCo retail operations in Michigan.

During the reporting period, Red White & Bloom's Platinum Vape 5/10 distillate cartridges were approved and debuted across its medical retail locations in Florida.

The company's recent acquisition of Emblem Cannabis Corp. resulted in the expansion of the company's portfolio with 67 cannabis product listings, out of which 28 were approved by the Ontario Cannabis Store and several were eliminated due to poor performance.

"Our commercial teams have fortified relationships with key retailers nationwide positioning us to leverage cost synergies from our upcoming harvest and processing optimization. We remain committed to cost containment while aligning our operations for sustainable growth and driving additional EBITDA growth from Emblem throughout the second half of 2024 and into 2025 as these initiatives are realized," De Zen concluded.

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