'We are excited to announce another quarter of record revenues,' said Norton Singhavon, Founder and CEO of Avant. 'Robust domestic and international demand for our products, combined with efficient operations, has allowed us to achieve positive cash flow and adjusted EBITDA. Moreover, the acquisition of the Flowr Group Okanagan has substantially enhanced our ability to fulfill this demand and continue delivering strong revenue growth.'
Financial Highlights (Q2 F2023)
Gross Revenue of
Total Net Revenue of
Recreational Net Revenue of
Export-B2B Net Revenue of
Overall gross margin-3 of 34% (vs. 23%), as the Company continues to withstand the impact of price compression and inflation. The Company's gross margins slightly decreased when compared to its most recent fiscal quarter (Q1 2023) as a result of liquidating inventory produced by
Gross margin of
Recreational (Dried Flower Pre-rolls, and Concentrates/Infused products) gross margin of 62% (vs. 53%).
Export-B2B gross margin of 37% (vs. 14%), reflecting a blend of high margin exports of Avant's premium cannabis, combined with low margin liquidation of
Total of 2,676 kg of cannabis sold (+182% or +1,727 kg).
Overall Weighted Average Selling price of
Recreational cannabis average selling price of
Corporate Overhead net of depreciation and share based compensation of
Cash Flow from Operations before changes in non-cash working capital of
Adjusted EBITDA-1 of
Adjusted EBITDA Margin-1 (% of Net Revenue) of 21% (vs. -26%).
Net Loss from operations of
Adjusted Net Loss of
Net and Comprehensive Loss of
As at the end of Q2 2023 the Company had approximately
Corporate & Operational Highlights (Q2 F2023)
The Company produced approximately 4,642 kilograms of cannabis (which includes dried flower and biomass) in the six months ended
Completed the acquisition of
Fully integrated
The
Continued to execute cost-savings initiatives to enhance Gross Margins by reducing Cost of Goods Sold (COGS). These measures are designed to reduce the cost of various inputs, including, but not limited to, labour, energy, CO, packaging, freight, fertilizer and personal protective equipment (PPE).
Key Subsequent Events
Received new product listing approvals, across multiple product categories (flower, infused pre-rolls, vapes, concentrates) - from various provincial liquor boards (including the
Received
Negotiated and executed new export supply agreements - with Avant signing its first export contract pertaining to the German market in
Credit Facility
On
The Company had recently explored initiatives to monetize its non-core, non-licensed and non-operational assets, some of which included a 'sale-leaseback' model of the
On
Subsequently, in
About
Avant is an innovative, market-leading premium cannabis company. Avant has multiple operational production facilities across
Avant is a publicly traded corporation listed on the
Contact:
Tel: +1-800-351-6358
Email: ir@avantbrands.ca
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain 'forward-looking information' as defined under applicable Canadian securities legislation, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words 'may', 'would', 'could', 'should', 'will', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'expect' or similar expressions and includes information regarding: the Company's continued momentum and growth as one of the fastest growing Canadian cannabis companies; the Company's expectations for continued growth in sales, cash flow and profitability as a result of the acquisition of Flowr Okanagan; the Company's annualized savings in connection with the acquisition of Flowr Okanagan; the Company's continued exploration of acquisition and contract growth opportunities; the Company's expectations regarding incremental sales of high-quality flower resulting from contract grow opportunities, without requiring any capital investment by the Company; the expected savings from the Company's second wave of cost-saving initiatives at the Flowr Facility; the implementation of both revenue-generating and cost-saving initiatives at the Flowr Facility; the anticipated achievement of positive cash flow from operations at the Flowr Facility; the timing of the conference call to discuss the financial results; the availability of a transcript of the conference call on the Company's website; the anticipated the Company's capacity utilization rate; the availability of the Financial Statements and the MD&A on the Company's SEDAR profile and on its website and expectations for other economic, business, and/or competitive factors. To the extent any forward-looking information in this news release constitutes 'financial outlooks' within the meaning of applicable Canadian securities laws, such information is being provided as preliminary financial results and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. The Company's actual financial position and results of operations may differ materially from management's current expectations and, as a result, the Company's financial results may differ materially. Examples include statements that the Company will build long-term shareholder value and reduce operational expenses; or that the Company will increase its revenue and maintain stable costs.
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; the impact of COVID-19 and the risk factors set out in the Company's annual information form dated
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speak only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
This news release refers to certain financial performance measures that are not defined by and do not have a standardized meaning under ('IFRS') as issued by the
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