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Two Alberta cannabis companies show signs of stability

Published on June 21, 2024 by oz. staff

Photo: Adobe stock/the oz.

A couple of Alberta cannabis companies are showing signs of financial stability.

Aurora, which has struggled over the years to find sound footing, says it had its best year yet.

“We are incredibly pleased to be reporting our strongest fiscal year ever at Aurora,” says CEO Miguel Martin.

“Aurora is the largest global medical cannabis company in nationally legal markets and our leadership is best differentiated by serving the diverse needs of patients across the world,” he says. “Total fiscal year 2024 net revenue increased 21% compared to the trailing four quarters, while adjusted EBITDA was positive on an annualized basis for the first time in our history, reaching $12.8 million. We also strengthened our balance sheet, ending with a strong net cash position of approximately $180 million as of March 31, and fully repaid our convertible debt.”

High Tide, the Calgary-based owner of Canna Cabana and other cannabis brands, released its second-quarter financial results last week with its cash flow flush, the company said in a news release.

“I am thrilled to report that in an environment where many cannabis companies, including some of our retail competitors, have been forced to seek bankruptcy protection, our team has been able to deliver positive net income in Q2, while also generating record-breaking free cash flow,” said Raj Grover, chief executive officer.

The company said it generated $9.4 million of “positive-free cash flow” in the second quarter and has generated $22.7 million in the past four quarters.

Cash-flow statements track cash in and cash out, “providing insights into a company’s financial health and operational efficiency,” according to the website Investopedia.

In its fiscal statement, High Tide said:

• “Revenue increased to $124.3 million in the second fiscal quarter of 2024 compared to $118.1 million during the same period in 2023.”
• “Gross profit increased to $35.3 million in the second fiscal quarter of 2024 compared to $31.6 million during the same period in 2023”
• “Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin increased to 8.1% in the second fiscal quarter of 2024, compared to 5.6% during the same period in 2023.”
• “The company generated positive net income of $0.2 million in the second fiscal quarter of 2024.”
• “Cash on hand as of April 30, 2024, totalled $34.5 million.”
  With 173 Canna Cabana stores, High Tide says it is the second largest cannabis company globally by store count.

— Pat Bulmer and David Wylie