Nextleaf Solutions Ltd., a leading cannabis processor based in Vancouver, has announced its impressive financial results for the third quarter ending June 30th, 2024. The company achieved significant growth, reporting CA$4 million ($3 million) in gross revenue, representing a 50% increase compared to the same period last year. This impressive performance was further solidified by a 37% year-over-year growth in net revenue, reaching CA$3,050,508. Notably, Nextleaf maintained its debt-free status throughout the quarter, showcasing a strong financial foundation.
Interim CEO Emma Andrews emphasized the company’s commitment to a sustainable future, stating, “We’re entering a new phase of our long-term growth strategy. We are dedicated to building a sustainable legacy and this involves expanding our marketing tactics, investing deeper into inventory, innovation, and product development to remain competitive.” Andrews further highlighted the company’s unwavering commitment to quality, stating, “Staying true to our DNA we are uncompromising on quality.”
While gross profit came in at CA$884,344, slightly down from CA$975,098 in the previous year, Nextleaf achieved a commendable 29% gross margin, demonstrating effective cost control and strategic pricing. However, the company reported a loss and comprehensive loss of CA$317,264, contrasting with an income and comprehensive income of CA$419,875 in the same quarter of the previous year.
As of June 30th, 2024, Nextleaf held CA$9 million in total assets and CA$4.3 million in total liabilities. This represents an increase in total assets compared to CA$8.5 million as of September 30th, 2023, and a slight decrease in total liabilities from CA$4.4 million in the same period.
Looking ahead, Nextleaf is prioritizing strategic initiatives for the remaining quarter of fiscal 2024, including new product launches, inventory expansion, infrastructure upgrades, digital marketing and education campaigns, and trade marketing initiatives. These initiatives are aimed at building brand equity and driving long-term growth.
“Building equity through consumer brands takes time,” remarked Andrews. “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.”
Nextleaf’s shares traded at $0.0601 per share on Friday morning, representing a 10.43% decline. The company’s performance in the third quarter demonstrates its commitment to growth and innovation within the evolving cannabis industry.
