CanadaBis Capital Inc., a premium vertically integrated Canadian cannabis company, is pleased to announce continued strong results for the fiscal third quarter and nine months ended April 30, 2023. Building on the Company’s success to date in 2023, CanadaBis recorded robust growth in both the quarter and year-to-date (“YTD”) periods, driven by a combination of continued sales expansion, ongoing realization of cost efficiencies and rising demand for new and existing stock keeping units (“SKUs”). This financial performance positions the Company well to continue efficiently and effectively executing our business strategy and focusing on the generation of positive returns for shareholders. The Company’s Financial Statements and Notes, as well as Management’s Discussion and Analysis (“MD&A”) are available on CanadaBis’ website and filed on SEDAR at www.sedar.com.
“The Company’s positive results for the quarter and YTD 2023 provide a clear indication of our ability to grow sales, gross profit, net income, and Adjusted EBITDA1, while effectively navigating ongoing headwinds facing the broader cannabis industry,” said Travis McIntyre, CEO of CanadaBis. “With a robust offering of multiple in-demand products under our DAB BODS, HIGH PRIESTESS, NGL AND SIGMA GROW brands, we believe CanadaBis can capture further market share, increase unit sales and enhance cost efficiencies to help maintain our strong momentum through Q4/23, putting us on track to achieve a record-breaking fiscal year.”
Third Quarter 2023 Highlights
- Positive Net Income and Earnings per Share – Net income was positive for the seventh consecutive quarter, totaling $1.2 million in Q3/23, 874% higher than Q3/22 and in-line with the previous quarter, as earnings per share were $0.01 compared to nil in Q3/22. Net income grew 2,431% to $3.2 million in the nine-month period over the same period in 2022, with $0.02 of earnings per share.
- Revenue Underscores Performance – Gross revenue was $9.6 million in Q3/23, 123% higher than Q3/22 and was a record $27.0 million for the nine-months YTD, increasing 154% over the same period in 2022, driven by steady growth and continued demand for new and existing SKUs launched in the 2022 fiscal year.
- Expanding Adjusted EBITDA1 – Adjusted EBITDA1 totaled $1.5 million in Q3/23 and was $4.1 million for the nine months ended April 30th, 2023, growing 226% and 290% over the same respective periods in 2022.
- Increased Brand Awareness Contributes to Growing Unit Sales – Over 489,000 units of combined concentrate and dry flower were sold in Q3/23, marking a corporate record and a 153% increase over the same quarter in 2022, driven primarily by increased brand awareness, continued growth of the Dab Bod products and the launch of our High Priestess brand into the marketplace, all of which have been well received and sold-out multiple times with increasing orders from provincial purchasers.
- Product Reformulation to Align with Consumer Preferences – CanadaBis continues to seek and receive feedback from current customers regarding preferences for terpene and cannabinoid profiles, and we have continuously launched new products and made adjustments to certain concentrate lines in order to enhance product marketability.
- Negotiations Support Cost Controls – Negotiations with multiple suppliers and other cannabis cultivators are ongoing and have enabled CanadaBis to manage our input expenses while implementing new production line procedures to reduce operational costs, a trend that is expected to continue throughout 2023, particularly as cultivators reposition themselves in the industry.
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1 |
Adjusted EBITDA is a Non-GAAP performance measure. Refer to “Advisories – Non-GAAP Measures” for further details. |
Quarterly Highlights (Q3 & Fiscal Nine Months 2023)
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Three months ended |
Nine months ended |
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April 30, |
April 30, |
% |
April 30, |
April 30, |
% |
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Gross revenue |
$9,582,737 |
$4,303,673 |
123 % |
$26,978,484 |
$10,640,526 |
154 % |
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Excise duty |
3,532,316 |
1,435,758 |
146 % |
9,561,471 |
3,149,999 |
204 % |
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Net revenues |
6,050,421 |
2,867,915 |
111 % |
17,417,013 |
7,490,527 |
133 % |
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Cost of sales |
3,352,865 |
1,599,701 |
110 % |
9,114,606 |
3,819,403 |
139 % |
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Gross profit |
2,697,556 |
1,268,214 |
113 % |
8,302,407 |
3,671,124 |
126 % |
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Net income and |
1,198,792 |
123,137 |
874 % |
3,194,559 |
126,193 |
2,431 % |
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Per share (basic and diluted) |
$0.01 |
$0.00 |
$0.02 |
$0.00 |
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Adjusted EBITDA1 |
$1,525,508 |
$468,536 |
226 % |
$4,066,658 |
$1,043,334 |
290 % |
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Outlook
With the continued positive performance delivered thus far in fiscal 2023, including exceptional growth in gross and net revenue, net income, Adjusted EBITDA1, along with rigorous cost controls, CanadaBis has set the stage to finish our fiscal 2023 with record-setting results. The ongoing execution of our strategic vision has created a platform for growth that offers a proven ability to accelerate momentum, positioning us well for a future focused on continued customer expansion and product diversification initiatives. As a vertically integrated cannabis company, Canadabis can be nimble in response to external factors that may lead to fluctuations in selling prices, input costs or changing customer demand, while maintaining strict and strategic capital management.
We intend to leverage our extensive brand portfolio, enhanced brand recognition, distinctive products, and strategic resource allocation to further develop innovative brands and create new products that optimally respond to evolving customer preferences. With our focus on cost control and the rising sales demand from provinces including Alberta, Ontario, and British Columbia, we are excited to pursue increased sales of our resin and shatter infused pre-rolls, moonrocks, Dab Bod and High Priestess products and continue to attract greater market share.
Looking ahead as we transition into fiscal 2024, CanadaBis remains focused on building further success, pushing boundaries and striving to deliver positive and sustainable shareholder value. The Company is strategically prepared for significant growth and product expansion, driven by innovative cultivation techniques, market penetration strategies, and an unwavering commitment to quality. Our strategic direction remains clear: we will actively pursue opportunities for growth, remain responsive to the evolving cannabis market, and continue to set new standards of excellence in our operations. The outlook for CanadaBis is not just promising; it’s an exciting testament to the resilience, ingenuity, and collaborative strength of our Company. We thank all of our shareholders and other key stakeholders for your continued support.
About Canadabis Capital Inc.
CanadaBis Capital Inc. is a vertically integrated Canadian cannabis company focused on achieving large-scale growth, from cultivation to retail, in the fast-emerging global cannabis market. By targeting organic growth opportunities alongside the right-fit partners, we remain focused on finding and capitalizing on chances to grow, diversify and continue to lead our industry.
Our integrated subsidiaries:
- Stigma Pharmaceuticals Inc. – 100% held
- 1998643 Alberta Ltd. (operating as “Stigma Grow“) – 100% held; www.stigmagrow.ca
- Full Spectrum Labs Ltd. (operating as “Stigma Roots“) – 100% held
- 2103157 Alberta Ltd. (operating as “INDICAtive Collection“) -100% held; www.indicativecollection.ca
- Goldstream Cannabis Inc. – 95% held
About Stigma Grow
Stigma Grow is a cutting-edge cannabis cultivation and extraction company positioned advantageously to meet the unmet market demands and stigmas within the legal cannabis industry head on, with products designed to disturb the status quo and dramatically shift the conversation surrounding Canada’s legal cannabis industry.
