Red White & Bloom Brands Inc. (RWB), a Canadian cannabis company, reported its financial results for the second quarter ended June 30, 2024. The Toronto, Ontario-based operator saw revenue climb to CA$22.0 million ($16.33 million), slightly exceeding the CA$21.7 million recorded in the same period last year.
The company highlighted several strategic initiatives contributing to its positive performance. These included advancing refinancing agreements with strategic lenders, moving forward with the opening of five new retail locations in Florida, establishing key distribution partnerships in California to expand market reach, and strengthening vendor relationships.
Red White & Bloom also emphasized its efforts to mitigate supply chain risks in Michigan by securing commitments for high-quality biomass. These proactive measures are anticipated to drive incremental EBITDA growth in the second half of fiscal 2024, building upon the substantial increase in EBITDA to $7.1 million in the first six months of 2024, representing a year-over-year improvement of over $8 million.
The company’s commitment to strategic growth extends beyond financial performance. Red White & Bloom secured a non-dilutive CA$5.8 million mortgage financing in June with a third-party Canadian lender and restructured its PharmaCo retail operations in Michigan, demonstrating a proactive approach to financial management and market optimization. The company also launched its Platinum Vape 5/10 distillate cartridges in its medical retail locations in Florida, expanding its product offerings.
Following the acquisition of Emblem Cannabis Corp., Red White & Bloom’s portfolio expanded with 67 cannabis product listings, with 28 approved by the Ontario Cannabis Store. The company is focused on cost containment and aligning its operations for sustainable growth, aiming to leverage cost synergies from its upcoming harvest and processing optimization.
Red White & Bloom’s CEO, Colby De Zen, expressed confidence in the company’s future prospects, stating, “These initiatives and investments are expected to drive incremental EBITDA growth in the second half of fiscal 2024. This follows a substantial increase in EBITDA to $7.1 million in the first six months of 2024, representing a year-over-year improvement of over $8 million. Our EBITDA gains for 2024 do not yet include the potential synergies and improvements from the Emblem group of companies which we expect to impact our results in the latter half of the year.”
Red White & Bloom’s Q2 financial highlights show a positive trajectory, driven by strategic initiatives and a focus on sustainable growth. The company is well-positioned to capitalize on market opportunities and continue its expansion within the evolving cannabis industry.
