The Good Shroom Co. Inc., cannabis and cannabis-infused products for the Canadian market, reported $3.9 million in net revenue in the year ended July 31, 2024, with net profits of $40,603.
This is up significantly compared to a net loss of $452,140 in the previous year.
The majority of The Good Shroom’s sales (more than 96%) are from cannabis products. In addition to cannabis products, The Good Shroom also produces a line of branded instant tea and coffee-based beverages under the brand Teonan.
The company currently sells cannabis products primarily in Quebec but also has some listings in Alberta, Ontario, and Prince Edward Island as of Q1 of the current fiscal year. They sell edibles, capsules and dried flower, as well as hash-infused pre-rolls.
A total of 89% of the company’s revenues were from one customer (93% for the year ended July 31, 2023) of its revenues are from one customer. The Good Shroom sells under the brand Seul CBD. Suel CBD also offers products under the Astro Nutas, Nordique Royale, Spring Hill, Velada, and OG Jerk brands, including an array of uniquely infused edibles like beef jerky and pepperettes.
“Achieving profitability in an industry as challenging as ours is an accomplishment we take pride in,” said Eric Ronsse, CEO of The Good Shroom Co. Inc. “While this milestone reflects the strength of our asset-light business model and financial discipline, our focus remains firmly on the future—continuing to innovate, expand, and deliver lasting value.”
One way The Good Shroom says it has increased profit margins in its most recent fiscal year is by focusing on products with a lower federal excise rate like dried flower or edibles, rather than extracts or concentrates like hash. This resulted in an excise tax cost as of July 31, 2024, at $742,623 compared to $897,338 in the prior year.
“For example,” the company notes in its report, “typically a hash product in the concentrates category, depending on size, would cost $6-$9/unit in excise. However, by comparison all products in dried flower categories of standard 3.5 gram size only cost $3.50/unit in excise. Others such as edible cannabis products also have much lower excise, on average $0.10/unit and CBD only products have no excise at all.”
Sales of The Good Shroom’s Teonan instant beverages were $157,258 for the year ended July 31, 2024, compared to $184,674 for the comparable period last year.
The company was first licensed as a micro processor in November 2019 before scaling up to a standard processing licence in October 2023. The Good Shroom recently released a THC-infused oral pouch in the Alberta market.
