News

Red or black? A roundup of cannabis financial news

Published on May 30, 2025 by Pat Bulmer

Photo: Contributed

Cannabis financial news: Weak Canadian dollar hurts; Auxly reports growth; Organigram still on top; Vapes a hit for Ayurcann

Exchange rate hurts Village Farms

Canadian revenues were down, but export sales were up for cannabis company Village Farms.

The company, which reports in American dollars, said the exchange rate was largely the reason Canadian net sales declined to $34.8 million in the first quarter of this year from $37.4 million in the same period last year.

Retail sales were down 20%, but international medical export sales increased 285%, the company reported.

“We are maintaining a top market share position in Canada despite our reduction in lower-margin branded sales,” said President and CEO Michael A. DeGiglio.

The company said it delivered its strongest EBITDA (earnings before interest, taxes, depreciation and amortization) in three years. Adjusted EBITDA increased 64% to $6.7 million from $4.1 million in the same 2024 quarter, the report said. Net income increased 258% to $3 million US

Village Farms also announced it will spin off its legacy produce division into a company called Vanguard Food with Village Farms retaining a minority stake. In Canada, the company also owns, in whole or in part, Pure Sunfarms and Quebec-based Rose LifeScience. The company has operations in the United States and the Netherlands.

Auxly sales growing

Wider distribution and an expanded product line are boosting the bottom line for Toronto-based Auxly Cannabis Group.

“In the quarter, the company reported net revenues of $32.7 million, a 29% increase year-over-year, driven by strong performance across key product categories,” Auxly said in a quarterly financial statement.

“Liquid Imagination 28G remained a top-selling dried flower SKU (stock keeping unit — a number on a package for tracking inventory), while the launch of Chemzilla 14G supported flower portfolio diversification.

“The Fire Breath cultivar, originally launched in late 2024 in Quebec and Ontario, has expanded distribution in British Columbia, Nova Scotia and PEI.

“The company launched a new flavour within the Back Forty all-in-one vape line-up, which quickly became a top-selling SKU. In the pre-roll category, the company refreshed its product portfolio led by the successful launch of Lemon Diesel and Pine Tar Kush.

“Back Forty exited the quarter as the #1 cannabis brand in Canada,” the report said.

Other financial highlights:

• Adjusted EBITDA increased by 232% to $7.4 million over the same period in 2024.
• Cash flow at quarter end totalled $17.1 million.
• The company reduced debt by 5% from the end of 2024.
  Auxly says it is Canada’s fourth largest licenced producer with a market share of 5.8%.
  “We are pleased to report another exceptional quarter of financial and commercial performance,” said CEO Hugo Alves. “We continued to see strong growth in distribution, driven in particular by the expanding reach of our flower portfolio.”

Organigram still No. 1

A Canadian giant says it has maintained its No. 1 position in a number of cannabis categories.

In its latest financial report, Organigram says it is No. 1 in market share in Canada in vapes, pre-rolls, flower, hash and pure CBD gummies, and No. 3 in edibles and dried flower.

The company is increasing revenues with international sales and saving money with the integration of Motif Labs, the report says.

“Motif integration now expected to exceed original estimate of $10 million to provide approximately $15 million in annual cost synergies, the report says. The company bought Motif Labs of Aylmer, Ont., in December. Motif is strong in vapes and infused pre-rolls.

“In Q2 Fiscal 2025, Organigram achieved $6.1 million in international sales and expects

international sales to increase,” the report said.

Organigram also touted new gummy technology.

“Organigram has commercialized the first product resulting from PDC (Product Development Collaboration) research — Edison Sonics: gummies utilizing Organigram’s Fast Acting Soluble Technology.”

Comparing numbers to the same quarter a year earlier:

• Gross revenue increased to $102.8 million from $57.4 million.
• Net revenue increased to $65.6 million from $37.6 million.
• International revenue increased to $6.1 million from $2.2 million.
• Adjusted EBITDA increased to $4.9 million from minus $1 million.

First profit for Avicanna

Medical cannabis company Avicanna has made its first profit.

“We are proud to report our first profitable quarter,” said CEO Aras Azadian in a news release. “With this solid foundation, we are now positioned to focus on scaling our Canadian operations, international expansion, and advancing of our R&D pipeline and intellectual property.”

Avicanna was founded in 2016: “Avicanna has focused on the medical applications and potential of cannabinoids and has dedicated eight years to R&D and clinical development of its proprietary products,” the company says on its website.

“In the first quarter of 2025, Avicanna expanded its Canadian portfolio to 42 proprietary commercial SKUs, representing a 35% increase from 31 SKUs in the same period in 2024,” the report said.

Some numbers reported in the first quarter of 2025 include net income of $74,000, EBITDA of $431,000, gross profit of $3.54 million and $6.32 million in revenue.

A partnership with Phillip Morris subsidiary Aspeya is helping to fund research efforts, the company said.

Avicanna products can be found in 19 international markets, the website says.

Record-setting quarter for Ayurcann

A Toronto-based cannabis company reported a record-setting financial quarter.

Ayurcann Holdings generated $14 million in gross revenue for the quarter ending March 31, representing a 22% year-over-year increase. Earnings were also in the black, the company said in a news release.

Ayurcann said it is a top-three vape producer in Ontario “with a 5% share of the national vape market and 8% share in Ontario.”

And it is rolling out products rapidly.

“Over the last six months, we launched 25 new SKUs across vapes, pre-rolls and concentrates,” the company said “Ayurcann’s products are now available across the country.

“Despite ongoing industry headwinds, we delivered revenue growth,” the company concluded.