Nextleaf Solutions Ltd. reported gross profit of $3.7 million from gross revenue of nearly $16.6 million for the twelve months ended September 30, 2024, but a $1.4 million loss.

While revenue was up considerably from the previous fiscal year’s nearly $10 million, and gross profit was up year-over-year from $2.3 million at the end of fiscal 2023, the companies’ losses were up significantly, on a year-over-year basis from income of $223,334 at the end of fiscal 2023.

Operating costs were also up significantly from the previous fiscal year, from nearly $2.3 million at the end of September 2023 to almost $5.3 million at the end of September 2024, due to what the company says was increased marketing and distribution costs associated with ongoing market expansion.

The company also reported gross revenue of $3.8 million in Q4 2024, a 16% year-over-year increase but a 5% decline from Q3 2024, which it says is consistent with “typical seasonal fluctuations observed in the industry during late summer.”

The BC-cased company’s $16.6 million in revenue in fiscal 2024 came from sales of its bulk distillate, branded extract products, and private label products. Sales of bulk distillate were nearly $1.5 million, down from nearly $2 million at the end of fiscal 2023. Wholesale revenue from its branded extract products was $13.4 million, up from $6.1 million in the previous year. Private label revenue was $1.6 million, down from $1.8 million in 2023. 

The majority of the company’s sales ($9.4 million) were in BC, while $7.1 million were in the rest of Canada. Nextleaf reached 44 new listings across BC, AB, and ON in fiscal 2024. 

The company sells its branded cannabinoid vapes, oils, and softgels in BC, Ontario, Nova Scotia, Manitoba, and Saskatchewan. It is also expanding its distribution in the prairie provinces by integrating additional partners to service Saskatchewan-based retailers. Lineage Distribution, currently servicing Nextleaf in Manitoba and “the northern Provinces” will also expand its existing distribution network in Saskatchewan.

Of the last eight fiscal quarters, Nextleaf has reported three profitable quarters for a total of $940,336 and five losses, for a combined amount of $2.2 million, or a total loss of $1.2 million from December 31, 2022, through September 30, 2024.

“This was a year of executing on the fundamentals,” said Emma Andrews, CEO. “We’ve been rapidly scaling up our manufacturing operations and inventory to support advancement of our commercial strategy and keep up with consumer demand. Despite the economic environment, we invested in our team and delivered increased sales. We’ve delivered continual innovation to maintain relevance in the market. We deepened relationships with retail partners and commercial partners alike, powering the industry with competitively priced products and ingredients, and delivering uncompromising quality.” 

In Q4 2024, Nextleaf reported $3.8 million in revenue, a gross profit of $946,000, and a loss of $240,000. For the previous quarter, which ended June 30, 2024, the company reported over $4 million in revenue, a gross profit of $884,344, and a loss of $317,264.

In a recent interview, Andrews said she is preparing for a three to five-year delay following the upcoming election before the industry can expect to see changes to the big-ticket items it has focused on over the years. These include excise tax reforms or changing the THC potency limits, such as the 10mg THC limit for edibles.

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