CANADABIS CAPITAL WITH SUB STIGMA GROW ANNOUNCES RECORD $7.8M REVENUE FOR FISCAL Q1 2023 UP 22% OVER Q4 2022, HIGHLIGHTED BY SIGNIFICANT GROWTH IN NET REVENUE, GROSS PROFIT AND EARNINGS
- Fiscal Q1/23 marks our fifth consecutive quarter generating net income and first quarter with positive earnings per share.
- Net income increased by 292% compared to the same period in 2022
- Gross quarterly revenue of $7.8 million was the highest since inception and 22% higher than the previous quarter
- Year-over-year net revenue grew 178% to $5.1 million while gross profit increased 154% to $2.4 million
- Adjusted EBITDA1 was a record $967,178 for Q1/23, increasing 43% over the previous quarter
CALGARY, AB, Dec. 30 2022 /CNW/ - CanadaBis Capital Inc. with its wholly owned sub Stigma Grow (the "Company" or "CanadaBis") (TSXV: CANB) a premium vertically integrated Canadian cannabis company, is pleased to announce our first quarter fiscal 2023 results, a record period for the Company marked by strong growth across net income, gross and net revenue, gross profit and Adjusted EBITDA1. These results stem from a combination of consistent sales increases along with the launch of over 100 new SKUs in seven provinces, positioning CanadaBis to continue expanding our product offerings and capture additional market share across North America. 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.
"I am very proud of what we accomplished during Q1/23 with another consecutive period of record sales, gross profit, net income and the first quarter posting positive earnings per share," said Travis McIntyre, CEO of CanadaBis. "With a 'consumer-first' approach to driving our growth, coupled with a firm commitment to controlling costs across the supply chain, we are aiming to continue executing our strategy through the balance of fiscal 2023 and beyond. Our steadfast execution and commitment to stakeholders offers investors a compelling opportunity to participate in the success and value creation initiatives being advanced by CanadaBis."
Q1/23 FINANCIAL HIGHLIGHTS
- Positive Net Income and Earnings per Share – For a fourth consecutive quarter, CanadaBis generated positive net income, which increased 45% over the previous quarter to $700,313 and drove earnings per share of $0.01.
- Record Growth in Gross and Net Revenue – Gross revenue in the quarter totaled $7.8 million, 22% higher than Q4/22 and 220% higher than the same period in 2022 due to steadily increasing sales and the launch of over 100 new SKUs across seven provinces. This revenue expansion stems from stronger demand for new and existing SKUs, including 20 new Dab Bod Brand products recently launched into five provinces, along with continued demand for products such as our High Priestess brand and Infuse pre-rolls.
- Robust Adjusted EBITDA1 - Adjusted EBITDA1 totaled $967,178 in Q1/23, 43% higher than $675,619 recorded in Q4/22 and a substantial increase over $14,142 generated in Q1/22.
- Higher Unit Sales and Strong Brand Demand – Over 380,000 units of combined concentrate and dry flower were sold in Q1/23, a 153% increase compared to the 150,000 units sold in the previous quarter.
- Concentrate Lines to Meet Customer Demands - In response to customer preferences, we have altered some of our extraction procedures to ensure concentrate lines maintain larger terpene and cannabinoid profiles across the lineup.
QUARTERLY HIGHLIGHTS (Q1/23)
Three months ended |
|||
October 31, 2022 |
October 31, 2021 |
% Change |
|
Gross revenue |
$7,812,425 |
$2,444,802 |
220 % |
Excise duty |
$2,664,738 |
$599,505 |
344 % |
Net revenue |
$5,147,687 |
$1,845,297 |
179 % |
Cost of sales |
$2,783,725 |
$912,968 |
205 % |
Gross profit (loss) |
$2,363,962 |
$932,329 |
154 % |
Net income (loss) and |
$700,313 |
($270,919) |
- |
Per share (basic and diluted) |
$0.01 |
($0.00) |
- |
Adjusted EBITDA1 |
$967,178 |
$14,142 |
6,739 % |
The momentum we have realized during the first quarter of fiscal 2023 has set the stage for what we believe is lining up to be an incredible year. As we leverage our multifaceted assets to drive growth and results for shareholders, we believe CanadaBis is well positioned to become a leader across multiple segments of the Canadian cannabis market. With the relentless efforts and progress made by our team to launch large volumes of SKU's in seven different provinces in Q1/23, the market has positively responded to our products, demonstrated by multiple nominations and awards that CanadaBis has received for our infused pre-roll products. To optimally serve our customers, we plan to continue developing innovative products that align with our customers' constantly changing preferences while ensuring our quality products meet provincial standards and are accepted into product calls.
As a vertically integrated cannabis company, CanadaBis intends to continue introducing new Canadian concentrate products under our own brand, while aiming to solidify our presence as an in-demand Licensed Producer offering unique abilities and high maneuverability. We are forecasting consistent growth in sales through the next several quarters based on sustained high demand and significantly increased purchase orders on our new products such as moon rocks, infused pre-rolls, infused flower, whole bud flower, live resin vapes and high CBD cartridges, which have shown strong market acceptance to date.
CanadaBis Capital Inc. (TSXV:CANB) 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
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.
Non-GAAP Measures
This news release contains the financial performance metric of Adjusted EBITDA, a measure that is not recognized or defined under IFRS (a "Non-GAAP Measure"). As a result, this data may not be comparable to data presented by other cannabis companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the MD&A for the three and nine months ended April 30, 2022. The Company believes that Adjusted EBITDA is a useful indicator of operational performance and is specifically used by management to assess the financial and operational performance of the Company.
1 Adjusted EBITDA is a measure of the Company's financial performance. It is intended to provide a proxy for the Company's operating cash flow and is widely used by industry analysts to compare CanadaBis to its competitors and derive expectations of future financial performance of the Company. Adjusted EBITDA increases comparability between comparative companies by eliminating variability resulting from differences in capital structures, management decisions related to resource allocation, and the impact of fair value adjustments on biological assets, inventory, and financial instruments, which may be volatile on a period-to-period basis. Adjusted EBTIDA is not a recognized, defined, or standardized measure under IFRS. The Company calculates Adjusted EBITDA as net income (loss) and comprehensive income (loss) excluding changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based payments, and finance costs.
Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include but are not limited to statements with respect to our business and operations; timing of the Sundial products coming to market; the demand and market for live-resin vape cartridges, and our general business plans. Forward-looking statements are necessarily based upon a number of assumptions including: the ability of the Company's products to compete with the pricing and product availability on the black-market; the market demand for the Company's products; and assumptions concerning the Company's competitive advantages. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: compliance with extensive government regulation, the general business, economic, competitive, political and social uncertainties; ability to sustain or create a demand for a product; requirement for further capital; delay or failure to receive board, shareholder or regulatory approvals; the results of operations and such other matters as set out in the Company's continuous disclosure on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although we believe that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have a material adverse effect on our future results, performance or achievements.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE CanadaBis Capital Inc.
Please visit or contact: [email protected], 1-888-STIGMA1, www.canadabis.com
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