Canadian Cannabis Producer Cannara Reports 43% YoY Revenue Growth, Boosts Market Share And Profitability

Vertically integrated cannabis producer Cannara Biotech Inc. LOVE LOVFF 8CB announced its fourth quarter and full fiscal 2024 financial and operating results on Monday ended Aug. 31.

The Montreal-based company revealed a 43% year-over-year revenue growth in 2024 to CA$82.2 million ($58.8 million).

Gross profit for the full year grew by 32% over the same period, reaching CA$27.9 million, with a gross margin of 34% before fair value adjustments.

Positive operating cash flow increased by 81% to CA$10.7 million, while free cash flow turned positive at CA$3.2 million, a CA$7.2 million turnaround from 2023.

"Fiscal 2024 was a transformative year for Cannara, showcasing the resilience of our business model and the strength of our execution strategy," said Zohar Krivorot, president and CEO. "With a 3.2% national market share and a leading position in Québec, we have proven our ability to deliver sustained growth in a challenging cannabis market. By investing in our state-of-the-art production facilities, powered by the lowest-cost electricity in the country, we continue to produce premium cannabis products at an unmatched value."

Read Also: Cannara Biotech Reports 6% YoY Drop In Q3 Gross Profit, 22% Revenue Increase As It Enhances Sales Force And Infrastructure

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Q4 2024 Financial Highlights

• Revenue saw a 28% increase year-over-year, totaling CA$23.4 million.
• Gross profit before fair value adjustments was CA$7 million, a 2% year-over-year increase. The gross profit percentage before fair value adjustments was 30%. Gross profit after fair value adjustments was 46%.
• Operating income was CA$5 million, compared to operating income of CA$5.8 million in the same quarter of 2023.
• Adjusted EBITDA came in positive at CA$3.7 million or 16% of net revenues compared to an adjusted EBITDA gain of CA$4.9 million in the same period of the prior year.
• Net income totaled CA$5.8 million compared to CA$ 4.6 million in the prior year's period.
• Positive operating cash flows of CA$3.2 million, compared to CA$2.9 million in the same period of fiscal 2023.
• Free cash flow increased to CA$2.7 million from CA$1.1 million in the fourth quarter of 2023, representing a year-over-year increase of 143%.

FY 2024 Financial Highlights

• Operating income was CA$10.1 million, compared to operating income of CA$11.9 million for 2023.
• Adjusted EBITDA amounted to CA$15.1 million, representing a 10% increase compared to the prior year.
• Net income was CA$6.4 million, compared to CA$6.9 million in 2023.
• The company's national market share rose to 3.2% in the fourth quarter, up from 2.3% in the same period of 2023.
• Cannara also saw strong growth in Québec, with market share increasing to 12.6% in October.

Outlook

Cannara reported that it plans to launch over 20 new products in fiscal 2025, with innovative formats like all-in-one vape devices and premium infused pre-rolls.

For fiscal 2025, the company aims to activate two more zones, adding 50,000 sq. ft. of active canopy, while its 24-zone facility allows scalable production in lockstep with demand.

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