CanadaBis Capital Inc., the Alberta-based company behind cannabis producer Stigma Grow, reported over $2 million in gross profit, $109,901 in net revenue and comprehensive income, and a half million in adjusted EBITDA as part of their most recent quarterly update.
The report covers the three months ending January 31, 2024 (the second quarter of 2024) and shows nearly $2.7 million in federal excise on over $7 million in gross revenue.
This was an 88% decrease in net income and comprehensive income compared to the same reporting period in 2023 and a 20% decrease in gross revenue. The company attributes this to increased competition and price compression, as well as increased efforts to expand its Dab Bods brand. Most of CanadaBis’ $900,000 in wages in this most recent quarter were related to its marketing and brand-building efforts.
Some of these costs were also balanced by renegotiating with suppliers for lower costs on input materials and purchasing bulk materials in higher volumes at a lower cost.
The company operates in cultivation and processing, as well as having a retail store in Alberta. Net revenue for its cultivation and wholesale business was $690,000 in Q4 2024, an increase from just $30,000 in Q2 2023. Gross profits for Q4 2022 were $81,378.
CanadaBis’ retail operation, the INDICAtive Collection, is currently listed as temporarily closed. The company reports $17,534 in net revenue, with the cost of sales at $55,989 for a gross loss of $38,455. Management is currently seeking a buyer for the store.
On the extraction side of the business, the company reported more than $5.8 million in Q2 2024, $3.6 million in net revenue, and more than $2 million in gross profits. This decreased from $6.1 million in net revenue and nearly $3.2 million in gross profit from the same period in 2023. This decline was largely attributed to a 40% decrease in sales of its extract products in Alberta, Ontario, Saskatchewan, and British Columbia
“Building on momentum realized in Q1 2024, I am proud to report that our second fiscal quarter represents another period of positive net revenue, earnings and adjusted EBITDA, reflecting our resilience despite a significant increase in competition and meaningful price compression as cultivators and processors reposition themselves in the market,” said Travis McIntyre, CEO of CanadaBis.
“Both in fiscal Q2 and Q3 2024, we are directing investment to enhance our product offering, while also launching a comprehensive nationwide retail-focused marketing campaign that leverages existing brand awareness. Our goal is to increase the profile of established brands while supporting the introduction of at least 17 exciting new SKUs that we anticipate will increase sales in subsequent quarters. With our unique capabilities and consumer-centric value proposition, the Company has earned brand loyalty that positions us well to drive continued shareholder value creation in an industry rife with competition and continued regulatory challenges.”
