Adam JacksonMTL Cannabis Corp. (CSE: MTLC) announced record results for its fiscal year 2024 ending March 31, driven by revenue growth and improved profitability as costs rise with it.
The Canadian cannabis producer reported revenue of C$83.1 million for the year, a 165.7% increase from C$31.3 million in the previous year. Net income rose to C$2.4 million, versus a net loss of C$2.2 million in fiscal 2023.
Filings show a significant portion of this growth came from the acquisition of Canada House Cannabis Group, which contributed C$17.5 million in net revenue since the completion of a reverse takeover transaction last July.
Flower-based products and concentrates, specifically dried flower, pre-rolls, and hash products, accounted for more than 70% of MTLC’s sales in both the Canadian and international markets.
The company’s gross profit margin before fair value adjustments improved to 45.6%, up from 35.7% in the previous year. However, operating expenses also rose significantly, increasing 140% to C$21.8 million, largely due to higher general and administrative costs associated with expanded operations.
MTL Cannabis operates in two main segments: Licensed Producers and clinics. The Licensed Producer segment, which includes cultivation and distribution, generated C$61.7 million in revenue, while the clinic segment contributed C$3.6 million.
Adjusted EBITDA rose 122.2% to C$13.2 million. The company also reported C$13.8 million in net cash inflows from operating activities.
As of March 31, MTL Cannabis reported C$15 million in notes payable and C$5.4 million in convertible debentures, a decent debt load that the company will need to manage going forward.
The Ontario-based company continues to see opportunities across all of its revenue channels, stating its focus will be on driving organic growth in the Canadian recreational and medical markets, as well as exploring opportunities to further strengthen its sales in international markets, such as Germany. MTLC already has established export channels into Germany, Australia, Poland, Portugal, and the United Kingdom.
