Cannabis retailer Nova Cannabis Inc. reported its first year of net revenue in 2023, as part of its recently-released annual report.
The company saw some of its largest increases in revenue from the growth of its “data licensing program.”
The Alberta-based retail chain owns and/or operates 96 locations across Alberta, Ontario, and Saskatchewan, primarily under its “Value Buds” and “Firesale Cannabis” banners.
Nova’s net earnings in 2023 were $3 million, compared to a $11.2 million net loss in the previous year. The company reported an adjusted EBITDA of $21.8 million in 2023, compared to $9.2 million in 2022.
The company also reported record revenue of $259.3 million, an increase of $32.9 million or 15%, from $226.4 million in 2022 and record gross profit of $61.6 million, or 24% of sales, a 40% increase from $43.9 million, or 19% of sales, in 2022.
Revenue from Nova’s “proprietary data licensing arrangements” was $12.4 million for 2023, which was an increase of 125% from $5.5 million in 2022.
Cash from operating activities increased significantly in 2023 to $11.7 million, an $11.6 million increase from $100,000 in 2022.
“Nova has achieved significant milestones this year, marked by sequential gross profit growth and positive net earnings for three consecutive quarters,” said Marcie Kiziak, CEO of Nova. “Our success in the current market is a direct result of our sharp focus on inventory management and the strategic enhancement of our proprietary data agreements, which has contributed to our positive cash flow position this past year.
“Amidst a competitive and fluctuating market, our expansion will continue to be measured, focusing on tactical opportunities in the key markets of British Columbia and Ontario in 2024. Our achievements through 2023 further highlight the success of the Value Buds banner, which has proven adaptable and well-positioned to endure success in Canada’s dynamic cannabis retail sector.”
The company’s annual report also says it is focused on opening new locations in the prairie provinces, as well as BC and Ontario. Ontario recently increased the number of stores one company can operate from 75 to 150, while BC is considering raising its cap of 8 stores per company.
BC currently lists three open Value Buds locations, while Ontario lists 34 as authorized to open. “Firesale Cannabis” was launched in 2023 and currently has one location in Alberta. There are 61 Value Buds locations in Alberta.
