Avant Brands generated $9.6 million in gross revenue and $8.5 million in net revenue in Q3 2024, but reported a net loss of $2.5 million after all associated costs.
While losses compared to $1.3 million in revenue in Q3 2024, the company saw an increase in the amount of cannabis sold, a continued push into international exports, and a decrease in the cost of sales.
Gross and net revenue were company records, as was the $5.1 million generated from export wholesale revenue in the three months ending August 31, 2024. Avant sold the equivalent of 3,087 kg of cannabis in this three-month period, a $2 million increase over $6.5 million of net revenue in the same period in 2023 from the sale of 1,558 kg of cannabis.
The company’s cost of sales was $4.3 million in the three-month period ending August 31, 2024, down from $4.5 million in Q3 2023.
Gross margin as a percentage of net sales increased compared to the same period in the previous year, which Avant attributes to growth in “high margin export wholesale revenue and production improvements leading to increased yields and lower average cost per gram.”
Recreational revenue accounted for 33% of net revenues in Q3 2024, with domestic wholesale revenue totalling 7% and export wholesale revenue comprising 60% of net revenues. This compares to 61% for recreational revenue in Q3 2023, with the remainder coming from export wholesale revenue at 36% with domestic wholesale revenue.
Avant Brands Founder & CEO Norton Singhavon said in a press release:
“Avant Brands is on a strong trajectory, and our Q2 2024 results demonstrate the effectiveness of our strategic initiatives. We are capitalizing on the growing international demand for premium cannabis products, while also achieving record profitability. With a focus on international markets and operational excellence, we are well-positioned for long-term success.”
Avant Brands operates several production facilities: 3PL Ventures in Vernon, BC, The Flowr Group Okanagan in Kelowna, BC, Avant Craft Cannabis in Edmonton, Grey Bruce Farms in Tiverton, ON, Tumbleweed Farms in Chase, BC, and Greentec Bio-Pharm in Kelowna, BC.
