Ayurcann brought in $25.1 million in net revenue for the fiscal year ended June 30, 2024, up from $12.5 million the year prior, an increase of 101%.
Gross Revenues from sales in the most recent fiscal year were $45.8 million, up from $22.4 million in the previous year.
Despite these increases, the Ontario-based cannabis producer still reported a nearly $4 million net loss for the year, although losses were down from $5.3 million in the previous year.
Ayurcann operates a fully licensed 13,585-square-foot extraction and manufacturing facility based in Pickering, ON. The company earns revenue from the extraction and processing of cannabis oil-based products. It processes its own biomass cannabis and the biomass of other companies.
The company sells 60 unique SKUs under the ‘Fuego’, ‘XPLOR’ and ‘Happy and Stoned’ brands in the BC, Alberta, Ontario, New Brunswick, Yukon, Manitoba, and Saskatchewan markets.
Ayurcann is the top producer of vapes in Ontario, based on reporting by Hifyre IQTM, as of March 30, 2024, and a top five pre-roll manufacturer by volume in Ontario as of March 30, 2024, based on data produced by the Ontario Cannabis Store as of March 30, 2024.
“As the cannabis industry continues to mature in Canada, we are thrilled to witness the steady growth of our revenues across the country,” said Igal Sudman, CEO of Ayurcann, in a press release. “Despite the challenges posed by an increasingly competitive environment and retail price compression, Ayurcann’s business-to-consumer focus has enabled us to expand our market share in multiple provinces.
“With over 70% penetration in dispensaries and a diverse range of 80 products across vape, concentrate, and flower categories, the success of our in-house brands has been transformative for Ayurcann. We’re proud to have made a lasting impact in the market, continuing to build on our growth trajectory,”
By focusing on cost-efficient development, manufacturing and promotion of its own brand vape and flower products, as well as discontinuing all of its non-core products and services, the company says it was able to increase its gross margin by over 4.2% year over year, from 29.5% in fiscal 2023 to 33.7% in fiscal 2024.
As of June 30, 2023, the company’s accumulated deficit was $14.4 million. As of June 30, 2024, Ayurcann had a working capital deficit of $2.4 million. As of June 30, 2024, the company has incurred $20.2 million in excise tax, up from $9.6 million the previous year.
The company’s management has forecasted that the expected expenditure levels and contracted commitments will not significantly exceed Ayurcann’s net cash inflows and working capital for the next 12 months. The company’s ability to continue as a going concern is dependent, as noted in its audited annual report, “upon its ability to obtain additional financing, achieve profitable operations in the future, and the continued support of shareholders and forbearance of creditors.”
