- Partner News
- Media Releases
- Mainstream News
November 30, 2022
CALGARY, AB – CanadaBis Capital Inc. (the “Company” or “CanadaBis”) (TSXV: CANB) along with its subsidiaries STIGMA GROW AND INCICATIVE COLLECTION, a premium vertically integrated Canadian cannabis company, is very pleased to announce the results of our fourth quarter and 12-month fiscal period ended July 31, 2022, representing the fourth consecutive quarter realizing positive earnings, robust revenue growth and solid Adjusted EBITDA1, driving record annual performance for the Company.
“The successful execution of our overall innovative product selection through fiscal 2022 supported strong sales growth and set the stage for CanadaBis / Stigma Grow to continue generating meaningful profitability in 2023 across our integrated portfolio of brands,” 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 aggressively executing our strategy through fiscal 2023, offering investors a compelling opportunity to participate in the success and value creation initiatives being advanced by CanadaBis.”
Q4 AND 2022 FINANCIAL HIGHLIGHTS: BREAKING RECORDS
ANNUAL & QUARTERLY HIGHLIGHTS
|Three months ended||12 months ended|
|Gross revenue||$6,411,808||$2,125,932||202 %||$17,052,334||$7,990,412||113 %|
|Excise duty||$2,233,366||$462,302||383 %||$5,383,365||$1,124,107||379 %|
|Net revenue||$4,178,442||$1,663,630||151 %||$11,668,969||$6,866,305||70 %|
|Cost of sales||$2,277,345||$1,131,827||101 %||$6,096,748||$4,349,746||40 %|
|Gross profit (loss)||$1,901,097||$531,803||257 %||$5,572,221||$2,516,559||121 %|
|Net income (loss) and
comprehensive income (loss)
|Per share (basic and diluted)||$0.00||($0.01)||–||$0.00||($0.02)||–|
|Adjusted EBITDA1||$675,619||Not assessed||–||$1,727,569||Not assessed||–|
1 Adjusted EBITDA is a Non-GAAP performance measure. Refer to “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” for further details. Within the Company’s MD&A, EBITDA calculation is shown by entity to demonstrate the breakdown of each entity.
Extraction and Tolling
Our Extraction and Tolling segment provides cannabinoid extraction services to other licensed producers and represented 95% and 91% of our total net revenue in Q4/22 and FY22, respectively, and grew 54% to $4.0 million and 61% to $10.6 million, respectively, over the same periods in 2021. A significant increase in sales from extract products in Alberta, Ontario, Manitoba, Saskatchewan and British Columbia, contributed to this growth, driven in part by our active product awareness campaign and the launch of several new SKUs that were extremely well received in the market.
In addition to our white label services, sales expansion has continued for Resin infused pre-rolls, new Strains of our vapes under the NGL brand and our moon rocks products. Continued market demand for these custom-made products drives significant demand for our state-of-the-art BHO extraction capabilities, and we anticipate continued expansion into this segment as we see market share continues to grow.
Cultivation and Wholesale
Net cultivation and wholesale revenue comprised 1% and 3% of total revenue in Q4/22 & FY22, respectively, and declined 45% to $32,242 and 41% to $203,178 during the three and 12-month periods ended July 31, 2022, respectively, relative to the same periods in 2021. With a significant increase of licensed producers across Alberta, we saw reduced sales in our pre-roll products, and the Company has recently shifted focused to the expansion of our more economic Extraction and Tolling segment. Going forward, CanadaBis intends to re-establish our position in the Alberta market for cultivating cannabis flowers with our own premium bud. We anticipate this will launch in the last calendar quarter of 2022 and position CanadaBis optimally to provide quality product at a lower price. Notwithstanding the top line declines over the past year, margins for this segment remain very healthy, supporting our strategy to advance it as a viable segment of the business.
As we have witnessed significant growth in total cannabis retail stores across Alberta, our retail operations have faced increased competition causing lower sales due to fewer customers. In Q4/22 and full year 2022, our net retail revenue totaled $145,211 and $679,420, respectively, representing approximately 3.5% and 6% of our total net revenue, respectively. In light of the intensely competitive retail landscape, CanadaBis intends to continue rebranding the Company and undertaking more aggressive marketing initiatives designed to increase market share and drive higher expectations for growth through the first fiscal quarter of 2023 and beyond.
I am incredibly proud of the tremendous performance and progress the team at Stigma Grow as well as Indicative Collection made through our fiscal 2022 year as we leveraged our multifaceted assets, enabling growth in multiple segments of the Canadian cannabis market. The Company has clearly demonstrated the ability to generate meaningful growth by driving operational and financial success, and our team is confident that this momentum will continue into future periods.
CanadaBis has numerous competitive advantages that support our long-term success in an expanding and evolving industry. Over the short-term, we plan to continue differentiating ourselves by virtue of our BHO extraction process which allows for a highly concentrated extraction of cannabis that ultimately produces some of the world’s most potent marijuana concentrate. We continue to expand and improve these processes due to their proven and robust contributions to corporate result, supported by a sharp focus on exploring additional opportunities to develop the Extraction and Tolling segment. In addition, the Company continues to undertake exploratory work to formulate various new and exciting concentrate products to meet the demands of our customers and help diversify our sales offerings into a competitive marketplace.
Given our position as a vertically integrated Cannabis company, we intend to continue introducing new Canadian concentrate products under our own brand, as well as third-party brands, while establishing our presence as an in-demand Licensed Producer with unique abilities and maneuverability. Further, we will continue to support education initiatives within the industry to help consumers better understand how cannabis products integrate into daily life and the various use cases. We remain excited about the opportunity to continue capturing market share using our diverse portfolio of brands, our unique products and services and our ability to benefit from ongoing industry developments.
We believe the stage has been set for CanadaBis to continue on our trajectory of strengthening financial metrics for the upcoming year, building on the robust revenue and earnings momentum created by our fourth consecutive quarter’s positive results. The Company’s consistent growth in sales performance is expected to carry forward into the next quarter based on sustained high demand and significantly increased purchase orders on our new products such as moon rocks, infused pre-rolls, live resin vapes and high CBD cartridges, which have shown strong market acceptance in the early going.
ABOUT CANADABIS CAPITAL INC.
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:
ABOUT STIGMA GROW
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.
For more information, please visit or contact: [email protected], 1-888-STIGMA1, www.canadabis.com
232 total views, 2 views today