Cannabis CPG Co. Cuts Losses, Boosts Gross Profit, Achieves Record Revenue In 2023 Amid Industry Headwinds

Zinger Key Points
  • Auxly Cannabis achieved record net revenues of CA$101.1 million ($74.3 million) in 2023, with gross profit totaling CA$21.3 million. .
  • Net loss was CA$44.5 million, down from CA$130.3 million net loss in 2022.

Auxly Cannabis Group Inc. XLY CBWTF reported its financial results Monday for the fourth quarter and full year ended Dec. 31, 2023.

The Toronto-based company said it has achieved record net revenues of CA$101.1 million ($74.3 million) in 2023, representing an increase of 7% compared to 2022.

Hugo Alves, the company's CEO called 2023 a "pivotal year for Auxly."

"We focused and optimized our business, resulting in meaningful cost savings and industry-leading margins, all done while delivering quality products and meeting the ongoing demands of our consumers," Alves continued.

The consumer-packaged goods company alongside its cannabis industry peers has experienced a seismic shift in both regulation and consumer perception.

The fusion of CPG and cannabis has often been discussed at Benzinga cannabis events and there will be more on this important topic at the upcoming Benzinga Cannabis Capital Conference in Florida on April 16-17, 2024.

Alves says that Auxly is "positioned to succeed in the current cannabis environment."

"In 2024, we will remain focused on sustainable, profitable growth and passionately committed to our consumers,” he added.

See also: EXCLUSIVE: Cannabis Companies On Importance Of Brands Going Mainstream, Entry Into Consumer Packaged Good Market

Q4 2023 Financial Highlights

  • Net revenues amounted to CA$27 million, up from CA$24.7 million in the fourth quarter of last year.
  • Net loss was CA$54 million, up from CA$16 million net loss in the same quarter of last year.
  • Adjusted EBITDA came in positive at CA$2.3 million, compared to an adjusted EBITDA loss of CA$783 000 in the fourth quarter of 2022.

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FY 2023 Financial Highlights

  • Gross profit totaled CA$ 21.3 million, up from CA$ 16.5 million in the prior year.
  • Selling, general, and administrative expenses amounted to CA$38.6 million, down from CA$46.6 million in fiscal 2022.
  • Total expenses were CA$73 million, down from CA$87 million in the prior year.
  • Net loss was CA$44.5 million, down from CA$130.3 million net loss in 2022.
  • Adjusted EBITDA came in positive at CA$1.5 million, representing an improvement from an adjusted EBITDA loss of CA$16.9 million in 2022.

CBWTF Price Action

Auxly's shares traded 2.7211% higher at $0.0151 per share after the market close on Friday afternoon.

Related News

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Posted In: CannabisEarningsNewsfinancial resultsFourth Quarter EarningsHugo Alves
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