The company behind retail chains T Cannabis, Cost Cannabis, and Fresh Cannabis Co., 1CM Inc., reported revenue of $50.5 million and cost of goods sold of $41.5 million in relation to cannabis for the year ended August 31, 2024.

This is an increase from $34.7 million in revenue and $26.8 million in cost of goods sold for the previous year, which ended August 31, 2023. Including non-cannabis sales, the company earned a net income of $615,906 and reported an accumulated deficit of $40,512,917 as of August 31, 2024.

The company says cannabis retail revenue contributed to 80% of its revenue growth for the year due to both new and existing stores, while the remaining 20% was related to the growth of its liquor retail operations.

The company currently operates 34 cannabis stores in Canada, and 1CM says its retail cannabis revenue has increased year-over-year due to the expansion of its store count and the maturity of its retail cannabis locations. 

Two of those stores, both Cost Cannabis branded, are located in Alberta. Two Fresh Cannabis Co. stores are located in BC. In New Brunswick, 1CM operates two Cost Canna locations and has another two in Saskatchewan. In Ontario, 1CM has 26 retail cannabis locations.

Cannabis revenue increased by 50% from the previous year, with 75% of that growth related to Ontario store expansions, based on growth that was related primarily to same-store sales. 

The company says its revenue pricing is based on the competitive market, and the increase has been due to more traffic in these stores, along with the additional stores opened during the period. 

“Management believes this increased growth can be attributed to customers appreciating the company’s competitive pricing strategy during a macroeconomic climate suffering from high inflation and affordability affecting many Canadians. The Company’s competitive pricing strategy combined with its commitment to customer service can be partially credited for the sales growth,” notes the financial report.

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