Avant Brands Inc., a leading producer of handcrafted, high quality cannabis products, is pleased to announce its financial results for the first quarter ended February 28, 2022 (Q1 2022).
“Q1 2022 saw our revenue more than double over the same period last year, primarily from new products and international exports,” said Norton Singhavon, Founder and CEO of Avant. “We are confident that our new cultivars, brand activations, production innovation and multi-channel sales strategy will continue our path to success for the fiscal 2022 year and beyond.”
Key Financial Highlights
All figures are compared to the Company’s most recent fiscal quarter (Q4 2021), unless otherwise stated; all financial information in this press release is reported in Canadian dollars.
Following a successful corporate and financial restructuring in the 2021 fiscal year, Avant has continued to build positive momentum by achieving record gross and net revenues, positive cash flow from operations before changes in non-cash working capital(B), and positive adjusted EBITDA(A)in Q1 2022. As at February 28, 2022, the Company maintained a strong financial position consisting of $11.7 million in cash, $22.8 million in working capital and no debt obligations.
▪ Achieved historical record gross revenues of $4.6 million, compared to $2.8 million, an increase of $1.8 million or 67%, with net revenue also being a record
▪ Recreational cannabis sales of $2.5 million, compared to $2.0 million, an increase of $0.5 million or 25%, demonstrating the significant demand for Avant’s premium cannabis brands
▪ Recreational cannabis gross margin excluding concentrates improved to 52%, compared to 43%, demonstrating the ability for Avant’s brands to resist price and margin compression
▪ Cash inflow from operating activities before changes in non-cash working capital(B) was $0.1, compared to a cash outflow of $2.0 million, representing an improvement of $2.1 million or 104%
▪ Gross margin before fair value adjustments(C) was $1.0 million, compared to $0.8 million, with overall weighted gross margin percentage of 23% compared to 34%. The decrease in gross margin percentage was due to a large bulk export sale and an increase in volume of its co-packing partnership with Habitat
▪ Operating expenses from continuing operations(D) were $1.3 million, compared to $2.2 million, an improvement of $0.9 million or 40%, as a result of normalized operations without the many one time professional fees the company experienced during fiscal 2021
▪ Net loss from operations was $1.1 million, compared to net loss from operations of $2.7 million, an improvement of $1.6 million, or 61%. Comprehensive loss was $0.5 million, compared to $7.7 million, representing an improvement of $7.2 million or 94%
▪ Achieved positive Adjusted EBITDA(A) of $0.1 million, compared to an Adjusted EBITDA loss of $1.2 million, an improvement of $1.3 million or 107%
▪ Maintained a strong capital position with approximately $11.7 million of cash, $22.8 million of working capital and no debt
Other Key Highlights
▪ BLK MKT was the #1 selling live rosin in the Province of Ontario, with a 24% market share ▪ Successfully expanded global cannabis exports with shipments totalling over 375kg of dried cannabis during the quarter
▪ Sold a total of 885kg of cannabis, representing an increase of 524kg, or 145% in volume ▪ Overall weighted average selling price of recreational cannabis maintained at $7.12 (including excise tax), compared to $7.25 per gram
About Avant Brands Inc.
Avant is an innovative, market-leading premium cannabis company. Avant has multiple licensed and operational production facilities across Canada, which produce high-quality, handcrafted cannabis products for our highly desired, and award-
winning consumer brands, sold across both recreational and medical channels.
Avant’s recreational consumer brands includes: BLK MKT™, Tenzo™, Cognōscente™ and Treehugger™, all produced from rare and exceptional cultivars, and sold in British Columbia, Ontario, Saskatchewan, Manitoba, New Brunswick, and the Yukon. The Company’s medical cannabis brand, GreenTec™, is distributed nationwide, directly to qualified patients through its GreenTec Medical portal, and through various medical cannabis partners. Please visit www.avantbrands.ca.