Avant posts increase in net revenue, driven by exports and rec sales

July 15, 2024 | Sarah Clark

Avant Brands (formerly GTEC Holdings) reported net revenue of $16.4 million for the first half of 2024, producing 6,417 kg of cannabis and selling 5,493 kg.

Despite these gains, a 9% increase from the same period in 2023, the company posted a $6.7 million loss for H1 2024 (first six months/half of 2024). The company posted nearly $2 million in federal excise taxes from its $18.4 million in gross revenue, nearly $9 million in cost of sales, and $13.9 million in losses from the change in fair value of biological assets realized through inventory sold.

Recreational cannabis sales accounted for nearly half (41%) of net revenues during the six-month period ended May 31, 2024. Domestic wholesale sales were 14% of net revenue, while export wholesale was 43%.

The overall weighted average selling price of cannabis decreased by 15% in the first six months of 2024 to $3.48 per gram, with the average for recreational cannabis at $4.98. The average recreational gross pricing per gram, calculated by determining the total flower sales divided by the total number of flower grams sold, was down from $7 a gram in the first six months of 2023.

Avant says the decrease in average selling price was primarily due to an increase in bulk domestic and export sales and a combination of general price compression in the industry.

The company’s cost of sales decreased to $8.6 million in the six-month period ended May 31, 2024, compared to $9.4 million in the first half of 2023. Avant says this decrease in costs was due to reductions in costs associated with its cannabis operations, incremental improvements in operational processes, and reductions in facility costs.

Avant has facilities in BC, Alberta, and Ontario. In BC: Vernon (3PL Ventures), Kelowna (Flowr Group) Greentec Bio-Pharmacueitcals (Construction in Progress), and Chase (Tumbleweed Farms). Alberta: Edmonton (Avant Craft). Ontario: Tiverton, (Grey Bruce Farms).