Rubicon Organics Q1 2024 Earnings Report

The TDR Three Key Takeaways regarding Rubicon Organics Q1 2024 Earnings Report:

• Rubicon Organics reports Q1 2024 net revenue of $8.9 million, a 1% increase from Q1 2023.
• Adjusted EBITDA loss of $0.4 million, compared to a profit of $1.7 million in Q1 2023.
• WildflowerTM tops Canadian topical market with a 30.6% share.

Rubicon Organics Inc. (OTCQX: ROMJF, ROMJ:CA), a producer of organic cannabis, announced its earnings report for the first quarter of 2024. The company reported net revenue of $8.9 million, marking a 1% increase from $8.8 million in Q1 2023. Adjusted EBITDA showed a loss of $0.4 million, a significant decline from a profit of $1.7 million in the same period last year.

Operating cash flow was negative $0.9 million, compared to a positive $0.2 million in Q1 2023. Gross profit before fair value adjustments was $2.2 million, a 28% decrease from Q1 2023. Rubicon Organics holds a 2.0% national market share in flower and pre-rolls and a 7.1% share in premium flower and pre-rolls. WildflowerTM, Rubicon’s topical brand, led the market with a 30.6% share.

CEO Margaret Brodie commented, “Rubicon Organics holds the #1 premium position in Canada and is poised for growth with the launch of our full spectrum extract vapes line tapping into the highest growth segment in Canada. With a focus on quality, we are confident that our vape launch will not only drive revenue growth but also solidify our position as a leader in the Canadian cannabis market.”

Brodie, CEO of Rubicon Organics acknowledged the challenging quarter due to seasonality and weak consumer sentiment from 2023 but expressed optimism for recovery in Q2, noting, “I expect to recover from this temporary dip from our streak of positive Adjusted EBITDA in Q2. In Q1, a changing product mix reduced our gross margin, but this spring we’ve shifted focus to higher-margin products, expecting improved results in Q2 and beyond.”

Rubicon Organics launched 1964 Supply Co.TM full spectrum extract vapes in Alberta, BC, and Ontario, with products expected to drive revenue growth starting in Q2. CFO Janis Risbin stated, “Despite the market challenges, we’ve managed to maintain revenue levels in line with Q1 2023, a testament to our resilience and adaptability. With the expected refinancing of our debt later this year, we remain focused on strengthening our already solid foundation and continuing to invest opportunistically for growth in 2024 and beyond.”

Rubicon Organics anticipates significant growth from the introduction of new genetics and product categories, including vapes and premium edibles. The company’s strategic focus is on quality and trying to improve and recover in the next quarter. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.