KELOWNA, BC / ACCESS Newswire / April 11, 2025 / Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BUP)("Avant" or the "Company"), a leading producer of innovative and award-winning cannabis products, today released its financial results for the first quarter ended February 28, 2025 ("Q1 2025"). Avant delivered improvements in several key financial metrics, reflecting continued progress in international markets and consistent execution across its operations. Highlights include:
Gross and Net Revenue Increases: Gross Revenue increased 8% to $9.7 million, and Net Revenue increased 7% to $8.6 million as compared to Q1 2024. These increases reflect the strong international demand for premium cannabis, and Avant's established relationships with international customers.
Export Wholesale Revenue1: Export Wholesale Revenue1 reached $4.7 million, representing a 41% increase over Q1 2024. This reflects increased global demand for Avant's premium flower, driven by market growth in Australia, Germany, and Israel.
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| Export Wholesale Revenue is a non-GAAP performance measure. The information is incorporated by reference from the Q1 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com |
Gross Profit: Gross profit increased to $1.6 million from $0.9 million in Q1 2024, driven by increased Net Revenue and a decrease in Change in fair value of biological assets realized through inventory sold.
Adjusted EBITDA2: Achieved Adjusted EBITDA2 of $1.7 million, marking the fifth consecutive quarter of positive Adjusted EBITDA2.
Adjusted Net Income3: Achieved $0.5 million Adjusted Net Income3, marking the fifth consecutive quarter of positive Adjusted Net Income3.
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| Adjusted EBITDA is a non-GAAP performance measure. The information is incorporated by reference from the Q1 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com |
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| Adjusted Net Income is a non-GAAP performance measure. The information is incorporated by reference from the Q1 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com |
Avant Brands Founder & CEO Norton Singhavon Comments:
"Avant continues to deliver revenue growth in a challenging environment, driven by robust international demand for premium cannabis and consistent execution across our operations. With increases in Gross Revenue, Export Wholesale Revenue1, and Gross Profit as compared to Q1 2024, Avant continues to demonstrate its ability to perform in any environment. We remain focused on scaling our global footprint while delivering sustainable, long-term value."
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| Export Wholesale Revenue is a non-GAAP performance measure. The information is incorporated by reference from the Q1 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com |
Fiscal Q1 2025 Financial Highlights (vs. Fiscal Q1 2024):
Revenue:
Gross Revenue: $9.7 million (+8%)
Net Revenue: $8.6 million (+7%)
Export Wholesale Revenue1: $4.7 million (+41%)
Recreational Revenue4: Decreased to $2.8 million (-16%)
Domestic Wholesale Revenue5: Decreased to $0.9 million (-28%)
Recreational revenue declined following a strategic realignment to focus on high-performing SKUs. This strategic realignment is expected to improve profitability in the long term, while continuing expansion in international markets.
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| Export Wholesale Revenue is a non-GAAP performance measure. The information is incorporated by reference from the Q1 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com |
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| Recreational Revenue is a non-GAAP performance measure. The information is incorporated by reference from the Q1 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com |
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| Domestic Wholesale Revenue is a non-GAAP performance measure. The information is incorporated by reference from the Q1 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com |
Gross Margin adjusted for fair value adjustments6:
Gross Margin adjusted for fair value adjustments6: Decreased to $2.9 million (-38%)
Gross Margin % adjusted for fair value adjustments7: Decreased to 34% (vs. 58%), resulting from compression of cannabis market prices, and incremental increases in the cost of cultivation inputs that resulted in increased Cost of Sales.
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| Gross Margin adjusted for fair value adjustments is a non-GAAP performance measure. The information is incorporated by reference from the Q1 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com |
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| Gross Margin % adjusted for fair value adjustments is a non-GAAP performance ratio. The information is incorporated by reference from the Q1 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com |
Cannabis Production and Sales:
Cannabis Production: 3,326 KG (+3%)
Cannabis Sales: 3,360 KG sold (+21%)
About Avant Brands Inc.
Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BUP) is a leading innovator in premium cannabis products, driven by a commitment to exceptional quality and craftsmanship. As one of Canada's largest indoor producers, the company operates multiple production facilities across the country, cultivating unique and high-quality cannabis strains.
Avant offers a diverse product portfolio catering to recreational, medical, and export markets. Its renowned consumer brands, including blk mkt, Tenzo, Cognoscente, flowr, and Treehugger, are available in key recreational markets across Canada. The company's international footprint spans Australia, Israel, and Germany, with its flagship brand blk mkt leading the way. Avant also serves qualified medical patients nationwide through its GreenTec medical cannabis brand, accessible via the GreenTec Medical portal and trusted partner network.
Avant is a publicly traded company, listed on the Toronto Stock Exchange (TSX) and accessible to international investors through the OTCQX Best Market (OTCQX) and Frankfurt Stock Exchange (FRA). Headquartered in Kelowna, British Columbia, the company operates in strategic locations throughout Canada.
Learn More:
For more information about Avant, including investor presentations and details about its consumer brands, please visit the company website: www.avantbrands.ca
Investor Relations:
For inquiries, please contact Avant Brands Investor Relations at 1-800-351-6358 or ir@avantbrands.ca.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain "forward-looking information" as defined under applicable Canadian securities legislation, encompassing statements regarding Avant Brands Inc.'s ("Avant" or the "Company") plans, intentions, beliefs, and current expectations concerning future business activities and operating performance.
Forward-looking information is often, but not always, identified by the use of words such as "expects," "intends," "anticipates," "believes," "estimates," "plans," "may," "could," "should," "will," or variations of such words and phrases. In particular, this news release includes forward-looking information related to, but not limited to, the Company's expectations for future revenue and sales growth, the continued performance of its international operations, the demand for its premium cannabis products-including the blk mkt brand-in key global markets, and the Company's strategic initiatives to prioritize high-performing SKUs, streamline its domestic offerings, and expand its presence in Australia, Germany, Israel, and other international jurisdictions. Forward-looking information also includes statements concerning the Company's ongoing focus on operational efficiencies, profitability, and the anticipated availability of financial statements and management's discussion and analysis ("MD&A") on the Company's SEDAR+ profile and website, providing investors with comprehensive financial information.
Investors should be aware that forward-looking information involves inherent risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied by such information. Management's current expectations may not accurately predict future events or outcomes. Therefore, investors are cautioned not to place undue reliance on forward-looking information.
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates, or projections concerning future results or events based on the opinions, assumptions, and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance, or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business, and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; and the risk factors set out in the Company's annual information form dated February 28, 2025 filed with Canadian securities regulators and available on the Company's profile on SEDAR+ at www.sedarplus.ca.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. Although the Company has attempted to identify important risks, uncertainties, and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated, or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as of the date of this news release. 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, except as required by law.
SPECIAL NOTE REGARDING FINANCIAL INFORMATION
This document should be read in conjunction with the Company's unaudited interim consolidated financial statements (the "financial statements") and the Company's MD&A for the three months ended February 28, 2025, and audited consolidated financial statements for the year ended November 30, 2024. All dollar amounts are referenced in millions of Canadian dollars, except where noted otherwise. The Company's financial statements and MD&A for the three months ended February 28, 2025 have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").
Additional information relating to the Company, including its Annual Information Form for the year ended November 30, 2024, is available on SEDAR+ at www.sedarplus.ca. Information on the Company's website does not form part of and is not incorporated by reference in the Company's MD&A.
SPECIAL NOTE REGARDING NON-GAAP AND OTHER FINANCIAL MEASURES
This document includes references to non-GAAP measures, which include non-GAAP and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure. These financial measures are used by the Company to evaluate its financial performance, financial position or cash flow and include non-GAAP financial measures, non-?GAAP ratios, total of segments measures, capital management measures, and supplementary financial measures. These financial measures are not defined by IFRS and therefore are referred to as non-GAAP and other financial measures. The non-GAAP and other financial measures used by the Company may not be comparable to similar measures presented by other companies, and should not be considered an alternative to or more meaningful than the most directly comparable financial measure presented in the Company's financial statements, as applicable, as an indication of the Company's performance. Descriptions of the Company's non-GAAP and other financial measures included in this document, and reconciliations to the most directly comparable GAAP measure, as applicable, are provided in the "Cautionary Statement Regarding Certain Non-Gaap Performance Measures" section of the Company's MD&A for the three months ended February 28, 2025, dated April 11, 2025.
SOURCE: Avant Brands Inc.
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