VANCOUVER, British Columbia, April 18, 2024 (GLOBE NEWSWIRE) -- LEEF Brands, Inc. ("LEEF" or the "Company") (CSE: LEEF, OTC: LEEEF), a premier vertical cannabis operator, today announced the release of its audited financial statements for the year ended 2023 along with the interim financial statements for the three months ended March 31, 2024.
First Quarter 2024 Highlights
- Net sales of $7.9M, an increase of 35% from Q4 2023
- Gross Profit of $3.2M, an increase of 26% from Q4 2023
- Gross Margin of 40.6%, an increase of 25% from full year 2023
- Adjusted EBITDA of $1.77M, an increase of 347% from Q4 2023
Full Year 2023 Highlights
- Net sales of $30.5M, an increase of 13% from full year 2022
- Gross Profit of $9.9M, an increase of 4% from full year 2022
- Adjusted EBITDA of $1.64M, an increase of 162% from full year 2022
Operational Highlights
- The Company had record gross margins of 40.6% in the first quarter of 2024.
- The Company had $1.77M in adjusted EBITDA in the first quarter of 2024.
- The Company had positive cash flow from operations in both full year 2023 and the first quarter of 2024.
- The Company reduced SG&A expenses by 36% in 2023 versus 2022.
- The Company is on track to plant the Salisbury Canyon Ranch in Q2 2024.
The Company also provided an update to its previously announced cultivation project, the Salisbury Canyon Ranch, a 1,900-acre property located in Santa Barbara County with a 187-acre Land Use Permit for Cannabis cultivation. "We have made substantial progress in relation to the construction of the farm" stated Micah Anderson, Chief Executive Officer. "Our buildout is advancing steadily, and we are in close collaboration with county and state partners to ensure readiness for planting by late spring, targeting a fall harvest. This project will greatly improve upon our supply chain, reduce costs, enhance efficiencies, and align our strategic goals for sustainable growth."
Management Commentary
"I am proud of the team and their performance in the past year and specifically in this quarter" Anderson continued. "We've seen stronger margins and EBITDA in the first quarter of the year and believe Q1 results are the beginning signs of success stemming from the efforts to reduce redundancies after our merger with Icanic Brands. We're right on schedule for planting at Salisbury Canyon Ranch this spring. This project is not only expanding our operations but also building strong momentum for continued financial health and growth."
"We've achieved record gross margins of 40.6% in Q1 2024, alongside positive cash flow from operations throughout 2023 and into the first quarter of 2024" added Kevin Wilson, Chief Financial Officer. "These milestones are a testament to the LEEF team's exceptional management of our supply chain and our commitment to partnering with high-quality customers. The dedication and strategic focus have been crucial in reaching these financial highs. As we move forward with our plans to plant at Salisbury Canyon Ranch, we're confident in our team's ability to sustain and build on this momentum throughout the year and into 2025."
The Company has also announced the issuance of 15,000,000 common shares at an average price of $0.03 CAD per share to settle $450,000 USD of payables to a service provider.
Select Financial Highlights
LEEF's full audited financial statements for the full year 2023 and the first quarter of 2024 are available on the Company's website at www.leefbrands.com and under the Company's profile at www.sedar.com.
About LEEF Brands Inc.
LEEF Brands Inc. is a leading California-based extraction and manufacturing cannabis company, recognized for its large-scale vertical integration and as one of the state's most sophisticated operators. With a comprehensive supply chain, cutting-edge manufacturing processes, and a dynamic bulk concentrate portfolio, LEEF powers some of the largest brands in California. For more information, visit www.LeefBrands.com.
LEEF Brands Inc.
Per: "Kevin Wilson"
Chief Financial Officer
SOURCE: LEEF Brands, Inc.
For further information:
LEEF Brands, Inc., Micah Anderson, CEO, or Kevin Wilson, CFO, 707-703-4111, ir@leefca.com
Non-IFRS Financial Measures
LEEF Brands, Inc. defines EBITDA as Net Loss (IFRS) adjusted for interest and financing costs, income taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA excluding share-based compensation, loss (income) on equity method investments, change in fair value of derivative liabilities, change in fair value of contingent liabilities, acquisition-related professional fees, and non-operational start-up costs.
EBITDA and Adjusted EBITDA are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-IFRS financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. Such supplemental non-IFRS financial measures are not standardized financial measures under IFRS used to prepare the Company's financial statements and might not be comparable to similar financial measures disclosed by other companies and, thus, should only be considered in conjunction with the IFRS financial measures presented herein.
The Company has provided a table above that provides a reconciliation of the Company's net loss to Adjusted EBITDA for the year ended 2022 compared to the year ended 2021.
Forward-Looking Statements
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company's future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved.
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including financial and operational results not proving to be as expected or on the timelines expected; the Company not completing certain proposed acquisition or financing transactions at all, or on the timelines expected; the Company not achieving the synergies expected; and other risks disclosed in the Company's Annual Information Form and other public filings on SEDAR at www.sedar.com Accordingly, readers should not place undue reliance on forward-looking statements.
For more information on the Company, investors are encouraged to review the Company's public filings on SEDAR at www.sedar.com. The forward-looking statements and financial outlooks contained in this news release speak only as of the date of this news release or as of the date or dates specified in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
