Nextleaf Maintains Debt-Free Status and Reports Record Year-to-Date Third Quarter Financial Results
Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) (FSE: L0MA) (“Nextleaf”, “OILS”, or the “Company”), a leading life science firm and licensed cannabis processor, is pleased to announce its financial results for the third quarter ending June 30th, 2024. The Company achieved gross revenue of $4,012,000, reflecting a 50% increase year-over-year and net revenue of $3,050,508, representing a 37% growth year-over-year. Additionally, the Company reported an Adjusted EBITDA of $725,3391.
Q3 FY2024 Highlights
- Debt-Free Status: Maintained secure debt-free status.
- Gross Revenue: $4,012,000 marking a 50% year-over-year increase driven by continuous innovation and commercialization efforts, deepening market share, and burgeoning commercial partnerships.
- Net Revenue: Achieved $3,050,508 marking a 37% growth compared to Q3 FY2023. Nine months year-to-date FY2024 has already surpassed FY2023 annual results by 18%.
- Gross Margins: Achieved a gross margin of 29% in Q3 FY2024, reflecting effective cost control and pricing strategies.
- Adjusted EBITDA: For the nine months ended Q3 FY2024, the Company achieved an Adjusted EBITDA of $725,3391.
- Product Launches: Launched 10 new products, including 3 vape SKUs, 3 softgel SKUs, 3 infused preroll SKUs, and 1 bottled oil SKU under the Glacial Gold and High Plains brands.
- Market Position: Maintained (#1-3) positions for Glacial Gold softgels in British Columbia, accounting for over half the provincial volume within the category.
- Record Sales: Achieved record sales in Ontario and Alberta, fuelled by new product offerings and increased distribution, demonstrating momentum from field sales and marketing initiatives.
“We’re entering a new phase of our long-term growth strategy. We are committed to building a sustainable legacy and this involves expanding our marketing tactics, investing deeper into inventory, innovation, and product development to remain competitive. Staying true to our DNA we are uncompromising on quality,” shares Emma Andrews, Interim CEO.
“Building equity through consumer brands takes time. I’ve led teams through a 10x scale-up before and understand the patience, resilience, ingenuity, and stamina required to make it happen. Our Q3 results show the incremental progress made in a few short months, and the exponential potential ahead of us as we continue to scale,” continues Andrews.
Q4 FY2024 Outlook
The Company will prioritize and allocate working capital to the following strategic initiatives throughout the remainder of the fourth quarter of FY2024:
- New Product Launches: Introducing 5 new products, including Glacial Gold CBN:CBD 10:10 Softgels 10-pack, Atmosphere Twisted Citrus All-in-One 2g Vape, Pure Distillate Banger All-in-One 1g Vape, alongside Crafty Cuts dried craft flower and Crafty Cuts Sampler Prerolls under the brand Miracle Valley.
- Inventory Building: Including customized vape hardware, and ‘all-in-one’ technology.
- Upgraded infrastructure: Digital integration across all aspects of the business including the completion of the Company’s ERP system, the initial integration of EQMS systems, and the initial validation of HRIS systems.
- Digital Marketing and Education: Launching an industry-first, on-demand virtual tour of Nextleaf Labs coinciding with Glacial Gold’s debut on SPIFFY, a national budtender virtual education platform and app.
- Trade Marketing Initiatives: Implementing retailer sampling programs, strategic partnerships with multi-store operators, and experiential events featuring the Glacial Cones shaved ice experience.
The Company plans to release a comprehensive Commercial Update within the next 30 days, pertaining to market and consumer insights, additional product launches expected in 2024, and SKU performance metrics in key regions.
