In the three months ended June 30, 2024, Decibel Cannabis reported $22.1 million in net revenue and $122,000 in net income.

While net revenue was relatively flat compared to the previous quarter, net revenue was up significantly from a loss of $3.5 million in Q1 2024. On a year-over-year basis, Decibel net sales were down compared to the same quarter in 2023, but the $122,000 in net income was up from a $423,000 loss in Q2 2023.

Of the $33.7 million in gross revenue in Q2 2024, Decibel reported incurring $11.5 million in excise tax (34.2%) and a $12.9 million cost of goods sold. The bulk of the company’s sales were in the Canadian non-medical market, while international sales were just $37,000 in Q2 2024, down from $1.1 million in Q2 2023. 

Decibel attributes this decline to the halt of exports to Israel as the company transitioned to a new partner. This was partially offset by Decibel’s first export to Australia.

Decibel is one of three companies named in a recent report by the Commissioner for Trade Levies at the Ministry of Economy and Industry that proposes possible levies on Canadian cannabis products. 

The company has now received regulatory approval to export flower and vape products to the UK, with the first shipment expected in Q3 2024.

“Decibel has shown good discipline reducing our current liabilities by ~5mm this quarter,” writes Benjamin Sze, Decibel’s Chief Executive Officer, in a press release. Market share has been challenged, but early indications from Qwest relaunch suggest we will regain market share in flower. A continued focus on execution and capital efficiency will serve as the platform for future growth.”