CALGARY, AB – Decibel Cannabis Company Inc., a market leader in premium cannabis and extract manufactured products, reported its unaudited interim financial results for the three and nine month periods ending September 30, 2024.
“Decibel has been very deliberate about reducing our current liabilities, by ~5mm this quarter. Maintaining discipline over time will result in a stronger balance sheet. This marks the last quarter where our primary focus is on Canadian domestic recreational sales. While we continue to integrate AgMedica into our portfolio, it is encouraging to see there is significant demand internationally for Decibel flower.” Benjamin Sze – Chief Executive Officer
Third Quarter Highlights
Net Revenue was $24.1 million in the third quarter of 2024, an increase of 9% sequentially over Q2 2024 and a year over year decrease of 12%. Net revenue decrease driven by increased competition in the infused pre-roll segment, vape consumers switching towards large format 510 cartridges and disposables and the halting of exports to Israel as the Company transitioned to a new distribution partner. Decibel has combatted market share declines with the relaunch of its domestic flower brand Qwest, introduction of large format 510 cartridges and disposables.
Gross Margin Before Fair Value Adjustments was 53% in the third quarter of 2024, compared to 44% in the third quarter of 2023.
Adjusted EBITDA of $5.1 million in the third quarter of 2024, an increase of 31% sequentially over Q2 2024 and a year over year decline of 21%. The decrease in Adjusted EBITDA year over year was primarily driven by a decline in net Canadian recreational sales and international sales.
Positive Free Cash Flow of $1.8 million in the third quarter of 2024, with a sequential increase of 75% over the third quarter of 2023.
Adjusted Net Income of positive $2.1 million in the third quarter of 2024, an increase of 294% over the third quarter of 2023.
Adjusted Earning Per Share (“Adjusted EPS”) of $0.01, with a year over year increase of $0.01.
Decibel’s unaudited condensed consolidated interim financial statements for the three and nine month periods ending September 30, 2024 and related management’s discussion & analysis for the three and nine month periods ending September 30, 2024 (“MD&A”) are available on SEDAR+ under the Company’s profile.
As of September 30, 2024, Decibel was in compliance with all of its financial covenants and expects to remain in compliance for the remainder of its twelve-month forecast period.
Decibel also ratified the appointment and position of Corporate Secretary to hold the position as an officer of the Company.
About Decibel
Decibel is a consumer-focused cannabis company known for premium products that delight customers through innovation and quality. With brands like General Admission, Qwest, and Vox, Decibel’s offerings are available across Canada, with expanding reach into global markets. Following the acquisition of AgMedica Biosciences in Q4 2024, Decibel has added an EU-GMP-certified facility, supporting its commitment to international standards and global distribution growth. Decibel now operates three cultivation facilities and a processing and manufacturing center, positioning the company as a leader in high-quality, globally accessible cannabis products and brands.
