MTL Cannabis Corp. brought in $2.5 million in net income from $83 million in net revenue for its fiscal year ending March 31, 2024.
This is an improvement for MTL Cannabis Corp., formerly Canada House Cannabis Group Inc., which reported a $2.2 million loss for the previous year, ending March 31, 2023, from $31 million in revenue.
MTL’s gross profits for the most recent fiscal year were $26.4 million, after nearly $17.8 million in excise taxes, along with factors like operating costs and costs of sales.
As of the fiscal year ending March 31, 2024, MTL says it has completed retrofitting all three operating facilities, specifically Montréal Cannabis Medical Inc. and IsoCanMed Inc. in Quebec, and Abba Medix Corp in Ontario.
The retrofits allow MTL to expand its consolidated estimated cultivation capacity by up to 6,500 kg per year, bringing the total estimated cultivation capacity for the consolidated entity up to 19,500 kg a year.
“MTL’s Q4 and record full-year results represent the unwavering commitment from our team to delivering high-quality and consistent cannabis products and services to our customers and patients, while delivering strong results and fundamentals to our shareholders,” said Michael Perron, CEO of MTL. “As we move forward, MTL will continue to build on the foundation we have established and ensure that we continue to be a trusted partner to the ever-growing global cannabis industry.”
MTL Cannabis Corp. is the parent company of Montréal Medical Cannabis Inc. (MTL Cannabis), a licensed producer operating from a 57,000 sq ft licensed indoor grow facility in Pointe-Claire, Québec; Abba Medix Corp., a licensed producer in Pickering, Ontario that operates a leading medical cannabis marketplace; IsoCanMed Inc., a licensed producer in Louiseville, Québec growing best-in-class indoor cannabis, in its 64,000 sq. ft. production facility; and Canada House Clinics Inc., operating clinics across Canada that work directly with primary care teams to provide specialized cannabinoid therapy services to patients suffering from simple and complex medical conditions.
To calculate the fair value less costs of disposal of the Licensed Producers CGU and Canada House Clinics CGU, the Company used a post-tax discount rate of 27% (Canada House Clinics – 27%), a pre-tax discount rate of 39% (Canada House Clinics – 37%), a terminal growth rate of 3% (Canada House Clinics – 3%), and EBITDA projections based on past experience and management’s best estimates regarding future revenue growth considering internal and external available information. For the year ended March 31, 2024, the Company concluded that the recoverable amount of each CGU was higher than its carrying value, and accordingly, no goodwill impairment charge was recognized.
