The Supreme Cannabis Company Inc. announced the release of its financial and operating results for the fourth quarter and fiscal year ended June 30, 2019.
Financial highlights include:
- Achieves first positive Adjusted EBITDA1 quarter of $3.2 million.
- Q4 2019 net revenue was $19 million, a 90% increase from Q3 2019 ($10 million).
- Fiscal 2019 total revenue was $41.8 million, a 370% increase from fiscal 2018 ($8.9 million).
- Forecasts net revenue for fiscal 2020 to be between $150 million and $180 million, and positive Adjusted EBITDA1for fiscal 2020
“We end fiscal 2019 as one of the few Canadian cannabis businesses building sustainable operations and valuable brands, reporting $3.2 million in Adjusted EBITDA1 for the fourth quarter,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “Our positive Adjusted EBITDA and significant revenue growth in the fourth quarter reflects the rapid scale of our 7ACRES business and continued strong sales pricing for our brands from the provinces as we transition our premium supply to recreational sales channels.”
“With strong confidence in our core business, we began fiscal 2020 with two accretive acquisitions that expanded our addressable markets, provided valuable licensed operating assets and focused expertise,” Mr. Dhaliwal added. “As we integrate these businesses and realize further efficiencies from our scaled 7ACRES operations, we expect all of our brands to meaningfully contribute to the revenue we have forecasted for fiscal 2020. Amidst the noise of this new marketplace, Supreme Cannabis has taken a strategic and disciplined approach to develop a focused business with clear pillars: best-in-class infrastructure, top consumer brands, advanced intellectual property, and high-impact and capital-light exposure to developing international markets.”
Supreme Cannabis’ core recreational flower brand, 7ACRES, accounted for the Company’s marked increase in revenue, growing 443% year-over-year from $3.5 million in Q4 2018 to $19 million in Q4 2019 and 90% quarter over quarter from $10 million in Q3 2019.
In the fourth quarter, 7ACRES continued to transition sales from its legacy wholesale contracts to recreational sales channels, increasing revenue from recreational markets by 51% between Q3 2019 and Q4 2019. As the brand continues to build equity amongst consumers, it will bring new proprietary strains to market. Subsequent to the fiscal year ended June 30, 2019, 7ACRES’ launched its proprietary strain, Jack Haze, the first sativa dominant strain to enter the market under the 7ACRES brand. With its novel traits, and differentiated profile, Jack Haze is securing premium pricing in the select provinces where available.
In the fourth quarter, under its partnership with Khalifa Kush Canada ULC (“KKE”), Supreme Cannabis expanded its product offerings beyond whole flower with the launch of premium KKE Oil. The Company’s KKE Sensi Star Oil was the first oil launched under the KKE brand. The Company will create other ultra premium products for recreational consumers under the KKE brand, including pre-rolls, derivative products and flower.