Ayurcann Holdings Corp., a leading Canadian cannabis extraction company specializing in the processing and manufacturing of various derivative cannabis 2.0 and 3.0 products in the recreational market, is pleased to announce its financial and operational results for the three and six months ended December 31, 2023, the highlights of which are included in this news release. All figures are reported in Canadian dollars. The Company’s full set of consolidated financial statements for the three and six months ended December 31, 2023 and accompanying management’s discussion and analysis can be accessed by visiting the Company’s website at www.ayurcann.com and its profile page on SEDAR+ at www.sedarplus.ca.
Financial Highlights for the Three and Six Months Ended December 31, 2023
- Gross revenue increased to $10,740,000 for the three-month period (compared to $4,408,000 for the same period last year), representing an increase of 141%
- Gross revenue increased to $22,531,000 for the six-month period (compared to $7,767,000 for the same period last year), representing an increase of 191%
- Gross margin, calculated based on net revenue, was 35%
Corporate Update
Ayurcann continues to be focused on maximizing the margins and market share from every product we make, and we believe this strong market share capture is driven by the reputation of our brands. By continuously providing high-quality products and new innovations that complement our current market offerings, we continue to look for new opportunities to increase revenue under our existing brands.
Ayurcann is pleased to announce that, during the first and second of fiscal 2024, it has secured 22 new stock keeping units (“SKUs”) in the vape, pre-roll and concentrate categories in Ontario, Alberta, Manitoba, Saskatchewan and British Columbia. The Company’s ability to consistently produce innovative and high-quality products has been a successful pathway to the growth it has been able to achieve.
Efficient process and partnerships.
We are continuously looking at creating efficiencies in our systems, including better manufacturing capacities and supply chain management. Over the past few months, Ayurcann has implemented new systems to improve the efficiency of the existing business to position Ayurcann for further growth.
Flavour forward infused pre-rolls have become a large segment in the Canadian marketplace and Ayurcann has introduced 8 infused pre-roll SKUs across the country, with 4 more offerings expected to become available in the third quarter of fiscal 2024.
Team focused on delivering results.
We are very pleased with our incredible team, both internal and external. People make a company and to deliver the best products to market. We set clear goals and objectives that are directly linked to the success of the Company and reward and recognize the hard work and accomplishments of our team.
As a company, Ayurcann’s branded vape and pre-roll products under the Fuego and Xplor band, are ranked as top 5 offerings across the country with XPLOR vapes consistently in the top 3 in Ontario1 – we intend to sustain and grow our market share across the country.
[1]Based on reporting by Hyfyre IQ™ as of Dec 31, 2023.
Future strategies and moving forward.
Ayurcann believes that our quality, brands, and product offerings will drive growth. Price compression has affected all categories in the industry and price compression is being driven by the financial issues faced by many competitors. Demand for products is still maintained in the marketplace. As a business focused on the quality and value, we have seen market growth and demand for our products translate into a strong competitive position.
