Vancouver, British Columbia--(Newsfile Corp. - August 29, 2024) - Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) (FSE: L0MA) ("Nextleaf", "OILS", or the "Company"), a leading life science firm and licensed cannabis processor, is pleased to announce its financial results for the third quarter ending June 30th, 2024. The Company achieved gross revenue of $4,012,000, reflecting a 50% increase year-over-year and net revenue of $3,050,508, representing a 37% growth year-over-year. Additionally, the Company reported an Adjusted EBITDA of $725,3391.
Q3 FY2024 Highlights
- Debt-Free Status: Maintained secure debt-free status.
- Gross Revenue: $4,012,000 marking a 50% year-over-year increase driven by continuous innovation and commercialization efforts, deepening market share, and burgeoning commercial partnerships.
- Net Revenue: Achieved $3,050,508 marking a 37% growth compared to Q3 FY2023. Nine months year-to-date FY2024 has already surpassed FY2023 annual results by 18%.
- Gross Margins: Achieved a gross margin of 29% in Q3 FY2024, reflecting effective cost control and pricing strategies.
- Adjusted EBITDA: For the nine months ended Q3 FY2024, the Company achieved an Adjusted EBITDA of $725,3391.
- Product Launches: Launched 10 new products, including 3 vape SKUs, 3 softgel SKUs, 3 infused preroll SKUs, and 1 bottled oil SKU under the Glacial Gold and High Plains brands.
- Market Position: Maintained (#1-3) positions for Glacial Gold softgels in British Columbia, accounting for over half the provincial volume within the category.
- Record Sales: Achieved record sales in Ontario and Alberta, fuelled by new product offerings and increased distribution, demonstrating momentum from field sales and marketing initiatives.
Glacial Gold Canadian Recreational Sales by Category.
Source https://www.headset.io/brands/glacial-gold
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"We're entering a new phase of our long-term growth strategy. We are committed to building a sustainable legacy and this involves expanding our marketing tactics, investing deeper into inventory, innovation, and product development to remain competitive. Staying true to our DNA we are uncompromising on quality," shares Emma Andrews, Interim CEO.
"Building equity through consumer brands takes time. I've led teams through a 10x scale-up before and understand the patience, resilience, ingenuity, and stamina required to make it happen. Our Q3 results show the incremental progress made in a few short months, and the exponential potential ahead of us as we continue to scale," continues Andrews.
Q4 FY2024 Outlook
The Company will prioritize and allocate working capital to the following strategic initiatives throughout the remainder of the fourth quarter of FY2024:
- New Product Launches: Introducing 5 new products, including Glacial Gold CBN:CBD 10:10 Softgels 10-pack, Atmosphere Twisted Citrus All-in-One 2g Vape, Pure Distillate Banger All-in-One 1g Vape, alongside Crafty Cuts dried craft flower and Crafty Cuts Sampler Prerolls under the brand Miracle Valley.
- Inventory Building: Including customized vape hardware, and 'all-in-one' technology.
- Upgraded infrastructure: Digital integration across all aspects of the business including the completion of the Company's ERP system, the initial integration of EQMS systems, and the initial validation of HRIS systems.
- Digital Marketing and Education: Launching an industry-first, on-demand virtual tour of Nextleaf Labs coinciding with Glacial Gold's debut on SPIFFY, a national budtender virtual education platform and app.
- Trade Marketing Initiatives: Implementing retailer sampling programs, strategic partnerships with multi-store operators, and experiential events featuring the Glacial Cones shaved ice experience.
The Company plans to release a comprehensive Commercial Update within the next 30 days, pertaining to market and consumer insights, additional product launches expected in 2024, and SKU performance metrics in key regions.
About Nextleaf Solutions Ltd.
Nextleaf® is an innovative cannabis processor and life science firm with a portfolio of federally regulated emerging consumer brands, market validated cannabis derivative products, and high-potency bulk ingredients. Nextleaf's multi-patented, highly automated, closed loop extraction and distillation technology sets the global standard for processing cannabis at scale.
With coast-to-coast distribution, Nextleaf brands are sold through both medical and recreational channels and includes acclaimed legacy-era brand Glacial Gold, and High Plains Cannabis.
The Company has been issued 19 U.S. patents, and 75+ patents globally, on cannabinoid processing including extraction, distillation, and acetylation.
On behalf of the Board of Directors of the Company,
Emma Andrews, Interim CEO
Contact: investors@nextleafsolutions.com
Follow Nextleaf Solutions on LinkedIn
Learn More: www.nextleafsolutions.com
Nextleaf trades as OILS on the Canadian Securities Exchange, OILFF on the OTCQB Market in the United States, and L0MA on the Frankfurt Stock Exchange.
Disclaimers and Disclosure Statements:
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of applicable securities laws. All statements other than statements of historical fact contained in this press release, including, without limitation, statements regarding the Company's anticipated delivery of its products to provincial markets across Canada and those regarding the Company's strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company's MD&A for the most recent fiscal period. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law. The Canadian Securities Exchange has not reviewed or approved the contents of this press release.
Non-IFRS Financial Measures
This press release includes references to "Adjusted EBITDA", which are not defined under International Financial Reporting Standards (IFRS). The intent of these non-IFRS measures is to provide additional useful information to investors and analysts. These non-IFRS measures do not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other entities. As such, these non-IFRS measures should not be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS.
Adjusted EBITDA is calculated as EBITDA plus share based compensation expense. Adjusted EBITDA is considered as a useful measure by management to understand the profitability of Nextleaf Solutions excluding the effects of certain non-operating items.
1 Non-IFRS or supplementary financial measure. See discussion in the Non-IFRS Financial Measures advisories section of this press release below and Management Discussion & Analysis.
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SOURCE: Nextleaf Solutions Ltd.
