Adam JacksonCannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) posted record quarterly revenue in its fiscal fourth quarter and delivered strong annual growth as the Canadian licensed cannabis producer expanded its market presence in Quebec and launched new products.
Revenue rose 28% to C$23.4 million in the quarter ended Aug. 31. For the full fiscal year, revenue jumped 43% to C$82.2 million.
Net income increased to C$5.8 million in the fourth quarter from C$4.6 million a year earlier, helped by a C$1.9 million deferred tax recovery. Annual net income was C$6.4 million versus C$6.9 million in fiscal 2023.
Cannara captured an 11.9% market share in Quebec during the fourth quarter, making it the third-largest producer in the province, according to Hifyre data cited by the company. Cannara generates the bulk of its revenue in Quebec, its largest market.
“Fiscal 2024 was a transformative year for Cannara, showcasing the resilience of our business model,” CEO Zohar Krivorot said in a statement. The company aims to “continue to produce premium cannabis products at an unmatched value” by leveraging Quebec’s low electricity costs.
CFO Nicholas Sosiak said the company delivered its 14th consecutive quarter of positive adjusted EBITDA, reaching C$3.7 million. Annual adjusted EBITDA rose 10% to C$15.1 million. Operating cash flow surged 81% to C$10.7 million for the year, while free cash flow improved to C$3.2 million compared with negative C$4 million in 2023.
The cannabis producer activated its 10th growing zone at its Valleyfield facility in January, bringing total cultivation space to 250,000 square feet. For fiscal 2025, Cannara plans to add two more zones totaling 50,000 square feet as it expands production to meet demand.
The company expanded its product portfolio by 94% to 124 unique products during the fiscal year, according to its management discussion and analysis filed with Canadian regulators, while maintaining a focus on premium cannabis at competitive prices to curb unlicensed sources. Recent launches included new genetics like Neon Sunshine and Bubble Up under its Tribal brand.
