The higher global sales comes as its Canadian peers grapple with oversupply at home.
Canadian cannabis producer Avant Brands Inc. (TSX:AVNT) (OTCQX: AVTBF) reported record third-quarter revenues on Tuesday, driven by surging international demand on its end.
The company posted gross revenue of C$9.6 million for the quarter ended Aug. 31, up 27% from a year earlier. Net revenue rose 30% to C$8.5 million. Net loss for the third quarter was C$2.5 million, compared with a year-ago net profit of C$1.3 million.
Avant’s export wholesale revenue more than doubled to C$5.1 million, outpacing domestic recreational sales for the first time.
“Avant Brands is rapidly establishing itself as a leader in the global cannabis market,” founder and CEO Norton Singhavon said in a statement. “Our strong international sales growth, coupled with new licensing agreements and partnerships, positions us for continued success.”
The company reported record cannabis production of 3,441 kilograms, up 5% year-over-year. Cannabis sold nearly doubled to 3,087 kilograms on increased international shipments.
While exports boomed, recreational sales in Canada fell 30% to C$2.8 million. During the quarter, Avant continued to streamline its offerings to focus on “high-performing and profitable core items,” the company said.
Avant had also inked nine international deals this year, eyeing expansion in markets like Australia and Germany.
“Along with new opportunities developing in the Czech Republic, Poland, Switzerland and the U.K. … these markets, with a combined population exceeding 250 million, present a substantial growth opportunity for Avant,” it said in a news release.
Gross profit fell to C$1 million from C$5 million a year ago, largely due to biological asset valuation impacts. Adjusted EBITDA reached C$2.1 million, marking the third straight quarter above C$2 million, it said.
Avant’s cash balance improved by C$2.4 million year-to-date, versus a C$5.1 million reduction in the same period last year. The company generated C$1.7 million in operating cash flow year-to-date.
Avant recently licensed its blk mkt brand in Australia, adding to deals in Germany, Israel and Switzerland.
The higher global sales comes as many Canadian cannabis companies grapple with oversupply at home. Read More