Expansion has been supported by the introduction of new products.
Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) reported a substantial rise in revenue and profitability for its fourth quarter and full fiscal year of 2023, both of which ended Aug. 31.
The Montreal-based cannabis producer recorded net revenue of $18.3 million, a 53% rise from the same quarter last year. The annual figures were even more striking, with total revenue reaching $57.6 million for the fiscal year 2023, a 60% increase from the previous year.
Sequentially, the fourth quarter showed meaningful growth, with increases in net revenues (15%), operating income (36%), adjusted EBITDA (26%), and net income (58%). Adjusted EBITDA for the quarter was $4.9 million, continuing a trend of positive results for the 10th consecutive quarter.
Cannara also reported record net income of $4.6 million for the quarter, alongside operating cash flows of $2.8 million.
“We’re not just focused on growing bigger, we’re focused on growing smarter,” CEO Zohar Krivorot said in a statement Thursday. “This focus has not only positioned us at the high end of profitability compared to our peers but also ensures our capacity to invest in future opportunities.”
The company has been expanding its market share in the Canadian cannabis market, particularly in Quebec, Ontario, Alberta, and British Columbia. That expansion has been supported by the introduction of new products, with more than 70 new SKUs launched this year, Krivorot said.
“Our strategic expansion has led to remarkable achievements in key markets,” CFO Nicholas Sosiak added. “Our positive cash flow situation not only enables us to pursue expansion organically but also allows us to stay committed to providing high-quality, affordable cannabis products.”
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