Red White & Bloom Brands Inc. (CSE:RWB) reported its condensed interim consolidated financial statements Friday for its third quarter ended Sept. 30, 2024. Canadian cannabis company disclosed quarterly revenue of CA$21.7 million ($15.47 million) compared to CA$20.1 million in the same period last year.
“Our primary focus has been, and remains, optimizing the business through careful analysis of all legacy, non-core assets and operations, with the goal of transitioning RWB into a profitable enterprise," stated company president Colby De Zen. "Over the first nine months of the fiscal year, we have made significant strides toward achieving our strategic objectives. Our EBITDA has increased 20 times compared to the same period last year, reaching approximately $7.5 million. Adjusted EBITDA stands at $9.6 million for the same period. These improvements reflect all of the RWB team's efforts in achieving more profitable revenue streams through organizational efficiencies and exiting unprofitable product lines and ventures.”
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Q3 Financial Highlights
- Gross profit before fair value adjustments was CA$7.0 million, down from CA$7.9 million, primarily due to inventory adjustments at Emblem Group.
- Gross profit after fair value adjustments rose to CA$10.3 million from CA$6.6 million.
- Adjusted EBITDA was CA$3.85 million compared to adjusted EBITDA of CA$4.82 million in the same period last year.
- Net loss narrowed to CA$1.84 million from CA$4.77 million in the same quarter of 2023.
Q3 Operational Milestones
- Red Light Holland's subsidiary Emblem Cannabis Corporation has been granted a total of 72 new Platinum and DIVVY product listings in preferred product formats across all provincial distributors, up from 67 as of 2024-Q2 close, including 35 listings approved by the Ontario Cannabis Store, up from 28 as of 2024-Q2 close.
- Added Prince Edward Island and New Brunswick to its Emblem distribution network with another Eastern province pending confirmation of activation in 2024-Q4 as well as continuing to increase penetration in existing markets such as Alberta, Saskatchewan, Manitoba, and British Columbia
- Updated genetics and refined cultivation processes at the Paris indoor facility, boosting efficiency, increasing THC potency, and improving harvest yields.
- Launched a new line of live rosin and live resin products in our California distribution network, further expanding our product portfolio.
- During the quarter, adult-use sales began in Ohio with Platinum Vape products under a licensing deal with a local producer.
- Continued with the corporate restructuring of our adult-use and medical-use retail operations in Michigan, contributing to prospective cost savings associated with variable and fixed overheads for each of the target retail locations.
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