Simply Solventless Concentrates (SSC) brought in $502,536 in net revenue in the first three months of 2024 from gross revenue of $3.1 million and net revenue after taxes of $2.3 million.
The Alberta-based company is behind cannabis brands Astrolab, Frootyhooty and the recently acquired Lamplighter, all available in Alberta, Ontario, and Saskatchewan with infused pre-rolls and vapes. Simply Solventless acquired Lamplighter on January 17, 2024. The company is looking to enter Manitoba and hopes to enter BC soon.
SSC says it has been experiencing rapid revenue growth, with average gross revenue of approximately $233,281 per month in 2022, around $581,117 per month in 2023, and $1,033,334 per month in the first three months (Q1) of 2024.
Excise tax on the $3.1 million in gross revenue for the first three months of 2024 was $823,959. The cost of goods sold in the net revenue of $2.3 million was nearly $1.2 million for a gross profit of $1.1 million. Adjusted EBITDA for Q1 2024 was $611,571. The company has reported positive adjusted EBITDA for the past seven quarters.
This represents an increase in gross and net revenue for the company compared to Q1 2023. However, the company reported lower gross profit and net income than in the same period, as excise taxes were not listed as remitted in Q1 2023.
Net and comprehensive income was $502,536 in Q1 2024, compared to $758,828 in Q1 2023 and a loss of $1 million in Q3 2023.
Salaries and wages also increased significantly in the most recent quarter (246%) compared to the similar period of 2023 due to a higher number of employees in sales and management roles.
SSC lists $9.5 million in raw material and processed intermediates in its inventory as of March 31, 2024, compared to $7.7 million as of December 31, 2023. The company says this increase is due to its acquisition of Lamplighter and in preparation for increased sales volumes.
As of March 31, 2024, SSC had a working capital surplus of $4.3 million, up from $3.7 million as of December 31, 2023.
“What we want to do is we want to bring solventless products to larger markets. And the largest markets in cannabis right now are infused pre rolls, vapes, and its predominantly flavoured distillate.”
