Avant Brands Inc. (TSX: AVNT) posted record financial results for fiscal 2024 ending Nov. 30, with strong growth coming from expanded international sales as exports make up two-thirds of the company’s net revenue these days.
The Canadian producer brought in $40 million in gross revenue for the year, up 32% from the previous year. But after subtracting $4.2 million in excise taxes, the net revenue was $35.8 million, up 36%, the company reported.
“Record revenues, significant international growth, and improved adjusted net income – fiscal 2024 was a landmark year for Avant Brands,” founder and CEO Norton Singhavon said in a statement. “We are focused on building on this success and creating long-term value for our stakeholders.”
The company’s export wholesale revenue saw the biggest jump, climbing 107% to C$19.4 million versus fiscal 2023, as Avant pushed more aggressively into markets abroad – especially in Australia, Germany, and Israel. Export sales in the fourth quarter hit a record C$7.3 million, a 352% increase over the same period last year and now make up 66% of the company’s net revenue.
Export wholesale revenue isn’t subject to domestic excise taxes, which is part of why the company is shifting its strategy toward international markets.
Cannabis production rose 19% to 12,643 kilograms, while sales volume nearly doubled with a 91% increase to 13,560 kilograms. The fourth quarter showed particularly strong sales with a 244% increase in cannabis volume versus the same period in 2023.
Despite the sales gains, Avant posted a gross loss of C$1.8 million in the fourth quarter, down from a C$1 million profit in the fourth quarter of 2023. The company said the decrease came from “non-cash impacts to biological asset valuations,” though noted these were partially offset by increased revenues.
For the full year, the company reported a net loss of C$22.5 million, versus a C$5.2 million loss in fiscal 2023. The increased loss was largely attributed to a C$6 million goodwill impairment charge and a C$3.8 million impairment on construction in progress.
The company noted its fourth straight quarter of positive adjusted EBITDA, which reached C$2.3 million in the fourth quarter. Adjusted net income hit C$2.7 million for the quarter. Still, auditors in filings noted a “material uncertainty related to going concern,” related to the company’s accumulated deficit of C$88 million as of Nov. 30, 2024.
For fiscal 2025, the company plans to grow further in existing international markets while exploring new territories including the Czech Republic, Poland, Switzerland, and the UK. Avant is also looking for partnerships with other Canadian producers to grow their strains under contract to meet rising global demand.
“This initiative will supplement existing production capacity and ensure a consistent supply of high-quality products to international clients,” the company said in a news release.
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