Canadian cannabis producer Avant Brands Inc. (OTCQX:AVTBF) reported financial results for the fiscal third quarter ended August 31, 2024. The British Columbia-based company revealed a record revenue of CA$8.5 million ($6.17 million), up by 30% from the same quarter last year.
“Avant Brands is rapidly establishing itself as a leader in the global cannabis market," stated Norton Singhavon, founder and CEO of Avant Brands. "Our strong international sales growth, coupled with new licensing agreements and partnerships, positions us for continued success as we bring our premium brands like blk mk, to consumers around the world. “
Read Also: International Expansion Still Major Growth Driver For Canadian Cannabis Co. Avant, Reports 4% YoY Increase In Q2 Net Revenue
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Fiscal Third Quarter Financial Highlights
- Net income was CA$500,000.
- Gross profit decreased to CA$1 million from CA$5.0 million in the same quarter of 2023, largely driven by impacts to biological asset valuations offset by increased revenues and decreased costs of sales.
- Adjusted EBITDA was CA$2.1 million, marking the third consecutive quarter of Adjusted EBITDA greater than CA$2 million.
- Gross revenue grew 27% from the third quarter of 2023 to a record of CA$9.6 million.
- Exports whole sale revenue reached a record CA$5.1 million, representing a 116% increase over third quarter of 2023. The company attributes this growth to the strong demand for Avant’s premium flower in global markets. Export wholesale revenueaccounted for 60% of net revenue, driven by aggressive market expansion in Australia, Germany and Israel.
- Gross margin increased to 49% from 31% in the same period last year.
- The company’s cash balance increased by CA$2.4 million year-to-date compared to a reduction of CA$5.1 million in the same period of last year.
Avant’s recreational cannabis revenue decreased as the company streamlined its product offerings, prioritizing high-performing and profitable core items. This strategic shift coincided with an increased focus on international expansion.
Fiscal 2024 Outlook
Management expressed confidence in the continued expansion of Avant’s international footprint. The company has executed a total of nine international agreements fiscal year to date, with products already shipped to four clients and a further three clients having shipments pending. These new clients represent near-term growth potential spanning key territories such as Australia, Germany, Israel and Portugal, along with new opportunities developing in the Czech Republic, Poland, Switzerland and the UK. These markets, with a combined population exceeding 250 million, present a substantial growth opportunity for Avant.
Price Action
Avant Brands shares closed Tuesday market session flat at 73 cents per share.
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