Highlights:
Total revenue of $10.3 million for Q4 2025, reflecting YoY growth of 1% from the comparative quarter
37% gross profit margin for Q4 2025
Positive Adjusted EBITDA of $287,329 for Q4 2025
Total revenue of $40.2 million for the Twelve Months Ended 2025, reflecting YoY growth of 18% from the comparative period
39% gross profit margin for the Twelve Months Ended 2025
Positive Adjusted EBITDA of $1,114,587 for the Twelve Months Ended 2025
Segmented revenue for the Twelve Months Ended 2025:
Vape - B2C: $31.2 million, B2B: $5.5 million
Cannabis - B2C: $3.5 million
Continues to execute on defined expansion plan with aggressive M&A strategy; retail presence of 32 locations across Ontario and plans to expand in major cities across Canada
Increased registered customer base to over 280,000 accounts across online and brick-and-mortar platforms
Vaughan, Ontario--(Newsfile Corp. - April 2, 2025) - Delota Corp. (CSE: NIC) (FSE: S62) ("Delota" or the "Company"), a leading Canadian omni-channel retailer of nicotine vape and alternative tobacco products, is pleased to report it has filed its unaudited quarterly financial statements, management discussion and analysis, and associated certifications (collectively, the "Quarterly Filings") for the three and twelve months ended January 31, 2025. As a result of the change of year-end from January 31st to March 31st as announced on January 22, 2025, the Company is required to file its fourth quarter unaudited condensed interim consolidated financial statements. The Company's annual audited consolidated financial statements for the 14-month period ended March 31, 2025 will be filed on or before July 29, 2025. The Quarterly Filings and details related to the change of year-end may be accessed under the Company's SEDAR+ profile at www.sedarplus.ca.
Cameron Wickham, CEO of Delota, commented, "I am pleased to report that our fourth-quarter results have pushed us beyond our $40 million revenue target for the year, reaching $40.2 million. Furthermore, we delivered an Adjusted EBITDA of over $1.1 million for the twelve-month period, marking four consecutive quarters of positive Adjusted EBITDA. Looking ahead, we are well-positioned to accelerate growth through a strategic focus on M&A, leveraging our omni-channel platform and a robust customer base of over 280,000 registered accounts. We will also prioritize strengthening our balance sheet and driving further profitability from our existing revenue base."
Financial Highlights:
Total revenue of $10,274,933 for the three months ended January 31, 2025 ("Q4 2025") reflecting YoY growth of 1% as compared to the three months ended January 31, 2024
37% gross profit margin for Q4 2025
Positive Adjusted EBITDA of $287,329 for Q4 2025
Total revenue of $40,201,971 for the twelve months ended January 31, 2025 ("Twelve Months Ended 2025"), reflecting YoY growth of 18% as compared to the twelve months ended January 31, 2024
39% gross profit margin for the Twelve Months Ended 2025
Positive Adjusted EBITDA of $1,114,587 for the Twelve Months Ended 2025
Segmented revenue for the Twelve Months Ended 2025:
Vape - B2C: $31.2 million, B2B: $5.5 million
Cannabis - B2C: $3.5 million
Other Highlights:
On February 3, 2025, the Company opened a new 180 Smoke Vape Store located at 1530 Albion Road, Unit 51A, Albion Mall, Etobicoke, expanding its retail footprint to 32 locations across Ontario.
On January 22, 2025, the Company announced a change to its fiscal year end from January 31st to March 31st.
On August 26, 2024, the Company opened a 180 Smoke Vape Store located at 499 Main Street South, Unit 60D, Shoppers World, Brampton.
On July 25, 2024, the Company opened a 180 Smoke Vape Store located at 70 Joseph Street, Parry Sound.
Select Financial Information
The following selected financial information as at and for the twelve months ended January 31, 2025 and year ended January 31, 2024 are derived from the Company's unaudited condensed interim consolidated financial statements.
| Twelve Months Ended January 31, 2025 | Year Ended January 31, 2024 | |||||
| $ | $ | |||||
| Revenue | 40,201,971 | 34,069,680 | ||||
| Net income (loss) | 561,758 | (1,992,576 | ) | |||
| Net earnings (loss) per share - basic and diluted | 0.02 | (0.07 | ) | |||
| Working capital (deficit) | (684,149 | ) | (771,198 | ) | ||
| Total assets | 14,800,818 | 13,735,729 | ||||
| Total non-current liabilities | 5,480,705 | 6,565,672 | ||||
| Total liabilities | 13,614,416 | 13,351,331 | ||||
| Share capital | 7,832,560 | 7,592,481 | ||||
| Warrant reserve | 99,398 | 99,398 | ||||
| Contributed surplus | 507,172 | 507,005 | ||||
| Accumulated deficit | (7,252,728 | ) | (7,814,486 | ) | ||
| Shareholders' equity | 1,186,402 | 384,398 | ||||
Adjusted EBITDA
The Company's "Adjusted EBITDA" is a non-IFRS metric used by management that does not have any standardized meaning prescribed by IFRS and may not be fully comparable to similar measures presented by other companies. Management defines Adjusted EBITDA as the net income (loss) reported, before income taxes and other expense (income) items such as finance costs, finance income, gains and losses related to derivative liability valuations, and adjusted for share-based compensation, depreciation and amortization expenses, gains and losses related to the revaluations of its right-of-use assets and lease liabilities and foreign exchange differences.
The reconciliation of net income (loss) to Adjusted EBITDA is presented below.
| Three Months Ended January 31, 2025 | Three Months Ended January 31, 2024 | Twelve Months Ended January 31, 2025 | Twelve Months Ended January 31, 2024 | |||||||||
| $ | $ | $ | $ | |||||||||
| Net income (loss) for the period - as reported | 253,846 | (959,575 | ) | 561,758 | (1,992,576 | ) | ||||||
| Depreciation and amortization | 130,680 | 137,988 | 524,378 | 575,431 | ||||||||
| Interest and accretion expenses | 210,695 | 237,190 | 822,416 | 330,492 | ||||||||
| Stock-based compensation | 1,219 | - | 11,196 | 218,981 | ||||||||
| Fair value adjustment of derivative liabilities | (284,506 | ) | 566,212 | (749,388 | ) | 566,212 | ||||||
| Deferred tax recovery | (15,943 | ) | (15,944 | ) | (63,776 | ) | (63,777 | ) | ||||
| Lease adjustments | (13,173 | ) | 244,114 | (18,357 | ) | 567,395 | ||||||
| Foreign exchange loss | 4,511 | 13,007 | 26,060 | 33,394 | ||||||||
| Adjusted EBITDA | 287,329 | 222,992 | 1,114,587 | 235,552 | ||||||||
About Delota Corp.
Delota is the largest omni-channel specialty vape retailer in Ontario with a mission of becoming one of the largest national specialty retailers of nicotine vape and alternative tobacco products. The Company's growth strategy includes aggressively growing its flagship brand, 180 Smoke Vape Store, by expanding its retail footprint organically in Ontario and select provinces across Canada, strengthening its national e-commerce platform, and through strategic M&A to accelerate growth and market consolidation. The Company is committed to expanding its nicotine product assortment, enhancing customer experience, and growing its registered customer base, which now exceeds 280,000 accounts.
Investors interested in learning more about Delota can visit www.delota.com.
For further information, please contact:
Delota Corp.
Julia Becker
Capital Markets
T: (604) 785-0850
E: ir@delota.com
Cameron Wickham
Executive Vice Chair and CEO
T: (905) 330-1602
E: info@delota.com
Cautionary Statements
This press release contains "forward-looking statements or information". Forward-looking statements can be identified by words such as: anticipate, intend, plan, goal, seek, believe, project, estimate, expect, strategy, future, likely, may, should, will and similar references to future periods. Examples of forward-looking statements in this press release include statements made regarding information about future plans, expectations and objectives of the Company overall.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The Company may not actually achieve its plans, projections, or expectations. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the adequacy of our cash flow and earnings, the availability of future financing and/or credit, developments and changes in laws and regulations, consumer sentiment towards the Company's products, failure of counterparties to perform their contractual obligations, government regulations, competition, loss of key employees and consultants, and general economic, market or business conditions, the impact of technology and social changes on the products and industry, as well as those risk factors discussed or referred to in disclosure documents filed by the Company with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/247020
SOURCE: Delota Corp.
