Canadavis Capital Inc., the parent company of cannabis brands including Stigma Grow, reported third-quarter fiscal 2024 results with gross profit of $2.2 million and net and comprehensive income of $109,824.
The Calgary-based cannabis company’s profits came mostly from the sale of extracts, with gross profit from the sale of dried flower of $170,946 and gross profit from the sale of extracts of just under $2 million for the three months ended April 30, 2024. This represents an increase in gross profit from the sale of cannabis flower compared to the same quarter in 2023 ($59,579) and a decrease in gross profit from the sale of extracts ($2.6 million).
The company reported a 44% decline in sales of its extraction products in Alberta, Ontario, Saskatchewan and British Columbia. However, sales of flavoured pre-rolls and electric dart pre-rolls continued to grow. CanadaBis also cited its butane hydrocarbon (BHO) extraction process as a competitive advantage in the industry.
The company recorded excise taxes of $763,447 from the sale of flower (approximately 48% of $1.6 million in total sales) and approximately $2.4 million from the sale of extracts ($5.5 million in total sales) in the third quarter of 2024, both of which represent excise tax rates of approximately 40-50%.
The company currently has a 66,000 square foot facility in Alberta, with approximately 44,000 square feet of the building developed and equipped to grow 225 kg of cannabis per year. In the most recent quarter, the company released 17 new SKUs to the Canadian market, solidifying its position as a leader in infused and “super slim” pre-rolls, while also looking to expand the Dab Bods brand across Canada.
The company’s total revenue increased in the third quarter of 2024 compared to the second quarter of 2024, but net revenue decreased due to higher excise taxes. This was somewhat offset by lower cost of sales, and net income remained relatively stable from the second quarter to the third quarter.
“Canadavis Capital’s third quarter 2024 results were strong driven by our strategic investments and continued efforts to optimize operational efficiencies,” said Travis McIntyre, chief executive officer of Canadavis Capital. “We remain focused on driving shareholder value through prudent financial management and a visionary strategy in the evolving cannabis market.”
