Nextleaf Solutions brought in over $4 million in revenue in their most recent quarterly report for the three months ending June 30, 2024, with $884,344 in gross profit but a $317,264 loss.
Total revenue increased significantly from the same period last year when the company brought in about $2.7 million in revenue. Still, losses were up considerably compared to the $419,875 in profit the company reported in Q3 2023.
Nextleaf says the increase in losses was primarily due to “significant share-based payment expenses” totalling approximately $914,000, and “the overall economic environment” as market conditions softened, consumer spending slowed, and operating costs increased. Revenue growth is attributed to expanded product reach and an increase in distribution channels.
The company reported incurring $961,484 in excise duties from their $4 million in sales.
“We’re entering a new phase of our long-term growth strategy,” says Emma Andrews, Interim Nextleaf CEO. “We are committed to building a sustainable legacy and this involves expanding our marketing tactics, investing deeper into inventory, innovation, and product development to remain competitive. Staying true to our DNA we are uncompromising on quality.”
“Building equity through consumer brands takes time. I’ve led teams through a 10x scale-up before and understand the patience, resilience, ingenuity, and stamina required to make it happen. Our Q3 results show the incremental progress made in a few short months, and the exponential potential ahead of us as we continue to scale.”
Nextleaf introduced five new products in the most recent quarter, including Glacial Gold CBN:CBD 10:10 Softgels 10-pack, Atmosphere Twisted Citrus All-in-One 2g Vape, Pure Distillate Banger All-in-One 1g Vape, alongside Crafty Cuts dried craft flower and Crafty Cuts Sampler Prerolls under the brand Miracle Valley.
For the nine months ending June 30, 2024, the company brought in $12.8 million in revenue from wholesale sales. Over half of this ($7.4 million) was sold in BC, while another $5.3 million was sold into the rest of Canada.
The company plans to release a comprehensive update within the next 30 days relating to market and consumer insights, additional product launches expected in 2024, and SKU performance metrics in various regions.
