Receive income and strategic expansion

Appearance date: April 29, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Cannara Biotech Inc (Lovff) achieved record sales, gross gain and operating results for the 2025 financial year with net turnover of $ 26.6 million, a quarter of 6% compared to the quarter and 35% compared to the previous year.

• The company achieved a record gain with a high gross profit before adjustments of $ 10.8 million with a gross margin of 41% with an increase of 11% compared to the quarter with a gross margin of 41%.

• Cannara Biotech Inc (Lovff) maintained 16 consecutive quarters with positive adjusted EBITDA and four consecutive quarters of the positive net income.

• The company extends its cultivation capacity by almost 20% with minimal capital expenditure, which will significantly improve its production capacities.

• Cannara Biotech Inc (Lovff) has a strong market position in Quebec with a market share of 12.8% and is the fastest growing licensed producer in Canada, which gains market share nationwide.

• The company recorded a decline in market share in Saskatchewan and Manitoba, as a transition to a new wholesale partner and prioritization of the highly volume markets.

• The operative cash flow for the second quarter was $ 2.6 million, and the free cash flow was a drainage of $ 4 million, which was affected by the advance payment of the consumption tax obligations and by advance deposits for packaging materials.

• Cannara Biotech Inc.

• The company is currently not pursuing an international expansion, which restricts the growth opportunities compared to competitors who could explore the markets overseas.

• There is a tension on the Canadian cannabis market that could affect pricing and margins if they are not managed effectively.

Q: You previously spoke about an internal goal for the number one quebec market share. Are there certain catalysts that you could push for number one in Quebec? A: Nicholas Sociak, CFO: In Quebec we cannot carry out traditional sales or marketing activities, so the promise of value of our product is of crucial importance. We lead quality in segments and categories and are usually better than competitors. We start new products such as the Trifecta Trifecta, a unique infused pre-roll and new genetics such as meat cake and postage. In addition, the upcoming introduction of Vapes in Quebec, where we are a leading producer, will significantly strengthen our market position.