Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) reported an 11% rise year-over-year rise in revenue for the quarter ending July 31, which the company attributed to the strategic push of its brands and diversified revenue avenues.
According to the report, Toronto-based cannabis producer earned gross revenue of $11 million this quarter, a bump of $232,784 from the third quarter of 2022. The upward trend is mostly credited to the launch of their Thrifty and Adults Only brands.
Contrarily, the nine-month tally ending July 31, recorded a dip, posting $30.7 million in revenue, down $202,736 from the previous year.
“We are highly focused on the strategic vision of driving sustainable growth across the organization through increasing market penetration with our brands and diversifying our revenue channels,” CEO David Schwede said in a statement.
“Paired with this strategy, we are maximizing efficiencies and fine-tuning our production, as well as continuing to penetrate our U.S. markets which are gaining strength showing over $3.2 million in sales thus far in Missouri and West Virginia combined,” he added. “These strategies are setting the stage for our company as we continue to grow in our home market and explore international opportunities.”
The company also sent product samples to licensed retailers in New York that it is working with. Official sales will commence in the state this month.
“Heritage continues to target the legal markets in the U.S. with an asset-light model and has signed a manufacturing and distribution agreement with a local partner that is primarily producing and selling products using Heritage’s innovative formulations and flavors, which have already achieved success in other markets,” it added.
In addition, the company shipped its inaugural order to an Australian entity this year and expanded its presence in Canada by entering the cannabis-infused beverage sector.
Heritage reported a third-quarter 2023 gross margin rise of 47% from the same period in 2022, a notable boost due to improved production efficiencies and a reduced excise rate.
However, not all figures were green. The company experienced a comprehensive loss of $1.1 million for the third quarter, albeit an improvement from the $2.8 million loss during the same period last year. A larger comprehensive loss of $5.8 million was noted for the nine-month period.
Net loss came out to $1.3 million for the period, versus $2.8 million in the same quarter last year, according to company filings.
After the third quarter’s conclusion, Heritage also announced executive changes with Jasmine Paige stepping in as interim chief financial officer, succeeding Dan Phaure. The company’s Pura Vida brand also achieved listing approval for retail distribution in Québec.
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