Auxly Cannabis Group Inc. (XLY, CBWTF) announced its second-quarter financial results for the three months ended June 30, 2024, showcasing a remarkable period of growth. The company reported net revenues of CA$29.2 million ($21.3 million), representing a 33% year-over-year increase and a 16% increase compared to the previous quarter. This impressive performance marks the highest Q2 revenue in Auxly’s history.
CEO Hugo Alves highlighted the company’s achievements, stating, “After our best start to a year ever, we are thrilled to report our best Q2 in history, with exceptional financial performance setting a new Q2 record in revenue and all-time records in gross margin and adjusted EBITDA.” He further emphasized the company’s significant market share gains across its core product categories, particularly in the vapor segment, where Auxly secured a notable 32% share of the growing all-in-one category.
The company’s financial highlights for the second quarter include:
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Gross Profit:
CA$15.9 million, resulting in a 55% gross margin, significantly higher than CA$6.1 million and a 28% gross margin in the same period last year.*
Selling, General and Administrative Expenses:
CA$9.3 million, a 6% increase compared to the same period in 2023, primarily due to restructuring-related costs.*
Net Income:
CA$2 million, a significant improvement from the CA$12.9 million net loss reported in the same period of 2023.*
Adjusted EBITDA:
Positive at CA$5.2 million, showcasing a CA$6.3 million improvement over the same period of 2023, largely driven by improvements in gross profits and SG&A.Auxly’s shares traded 0.61% higher at $0.033 per share after the market close on Wednesday. This positive performance reflects investor confidence in the company’s continued growth trajectory.
The company’s strong second-quarter results demonstrate its commitment to innovation and market leadership in the cannabis industry. Auxly’s focus on the vapor segment, coupled with its overall growth strategy, positions the company for continued success in the evolving cannabis market.
