CanadaBis Capital Inc, the parent company of cannabis brands like Stigma Grow, reported its third quarter fiscal 2024 results, with $2.2 million in gross profits and 109,824 in net and comprehensive income.
The majority of the Calgary-based cannabis company’s profits was from the sale of extracts, with $170,946 in gross profits from dried flower sales and just under $2 million in extract sales for the three months ended April 30, 2024. This is an increase in gross profits from cannabis flower sales from the same quarter in 2023 ($59,579) and a decrease in gross profits from extracts sales ($2.6 million).
The Company reported a 44% decrease in its sales of extract products in the provinces of Alberta, Ontario, Saskatchewan, and British Columbia. However, it has seen continued growth in the sale of its flavoured, infused pre-rolls and its Electric Dartz pre-rolls. CanadaBis also lists its butane hydrocarbon (BHO) extraction process as a competitive advantage in the industry.
The company lists $763,447 in excise duty from its sales of flower (~48% of $1.6 million gross sales) and almost $2.4 million in excise duty for extracts sales (from $5.5 million gross sales), both representing around 40-50% excise rates, for Q3 2024.
The Company currently owns a 66,000-square-foot facility in Alberta, with around 44,000 square feet of the building developed and equipped to grow 225 kg of cannabis per year. In the most recent quarter, they released 17 new SKUs into the Canadian market and have been attempting to position themselves as the leader in infused pre-rolls and “super slim” pre-rolls, as well as expand the Dab Bods brand across Canada.
The company’s overall gross revenues were up in Q3 2024 compared to Q2 2024, but higher excise taxes meant lower net revenue. This was somewhat offset by a lower cost of sales, which led to net income remaining relatively stable from Q2 to Q3.
“CanadaBis Capital’s performance in Q3 2024 was robust, driven by our strategic investments and continuous efforts to optimize our operational efficiencies,” said Travis Mcintyre, Chief Executive Officer of CanadaBis Capital. “We are focused on enhancing shareholder value through prudent financial management and forward-thinking strategies in the evolving cannabis market.”
