CALGARY, AB – Simply Solventless Concentrates Ltd. reported its Q2 2024 results, including record gross revenue of $4,232,663, record EBITDA of $1,282,696 (adjusted EBITDA of $952,986), record net income of $1,220,708 (normalized net income of $890,725), and annualized net income of $0.096 per share. All Q2 2024 results exceed the Q2 2024 guidance provided by SSC in its news release dated May 27, 2024. The information set out in this press release should be read in conjunction with SSC’s financial statements as at and for the three and six months ended June 30, 2024 and the related management’s discussion and analysis, which are available for review on SSC’s SEDAR+ profile at www.sedarplus.ca.
Jeff Swainson, President & CEO of SSC, stated: “SSC has established a track record of revenue growth and profitability which has resulted in strong strategic positioning within the Canadian cannabis industry. We will seek to continue to leverage this positioning to capitalize on opportunities resulting from industry headwinds, and to finish the second half of 2024 stronger than the first half.”
Mr. Swainson added: “Our team is doing a fantastic job integrating CannMart Inc. into our operations as planned. Revenue growth is being fuelled by the proceeds of our recent over subscribed $3.85 million financing, and we are capitalizing on synergies and cost reductions with CannMart which are expected to drive profitability. We will provide Q3 2024 guidance in the coming weeks; however, on a preliminary basis, we are projecting Q3 2024 annualized gross revenue of approximately $27.0 million ($0.40/share), September 2024 annualized gross revenue of approximately $33.0 million ($0.45/share), Q4 2024 annualized gross revenue of approximately $37.0 million ($0.50/share), and December 2024 annualized gross revenue of approximately $42.0 million ($0.55/share), up from our record $16.8 million of annualized gross revenue achieved in Q2 2024.”
Q2 2024 Financial Highlights
- Q2 2024 Net Income per Share (EPS): $0.024 (Q1 2024 – $0.01), an increase of 140%.
- Q2 2024 Annualized Net Income per Share (EPS): $0.096 (Q1 2024 – $0.04), an increase of 140%.
- Q2 2024 Cash Flow from Operations Before Working Capital Changes: $952,896 (Q1 2024 – $610,843), an increase of 56%.
- Q2 2024 Gross Revenue: $4,232,663 (Q1 2024 – $3,122,232), increase of 36%.
- Q2 2024 Net Revenue: $2,902,206 (Q1 2024 – $2,298,273), an increase of 26%.
- Q2 2024 Gross Margin: $1,720,920 (Q1 2024 – $1,117,387), an increase of 54%.
- Q2 2024 Gross Margin Percentage: 59% of net revenue (Q1 2024 – 49%), an increase of 20%.
- Q2 2024 EBITDA: $1,282,969 (Q1 2024 – $567,602), an increase of 126%. See TABLE 1 below.
- Q2 2024 Adjusted EBITDA: $952,986 (Q1 2024 – $611,571), an increase of 56%.
- Q2 2024 Net Income: $1,220,798 (Q1 2024 – $502,536), an increase of 143%.
- Q2 2024 Normalized Net Income: $890,815 (Q1 2024 – $546,505), an increase of 63%.
- Q2 2024 Working Capital: 5,909,655 (Q1 2024 – $4,233,711), an increase of 40%.
- Q2 2024 Inventory Turnover: 0.48x (Q1 2024 – 0.50x). Expected Q3 2024 inventory turnover of 0.70x and expected Q4 2024 inventory turnover of 1.00x, reflecting planned increases in revenue.
- Q2 2024 Current Ratio: 1.74 (Q1 2024 – 1.64), an improvement of 6%.
- Q2 2024 Financing: On April 17, 2024, SSC issued 5,333,334 units at a price of $0.15 per unit for net proceeds of $800,000.
- CannMart Services & Acquisition Agreements: On June 24, 2024, SSC entered into services and acquisition agreements regarding the operating and acquisition of CannMart Inc.
- Q3 2024 Financing: On July 17, 2024, SSC issued 15,400,000 units at a price of $0.25 per unit for gross proceeds of $3,850,000.
- Warrant Exercises: Subsequent to Q2 2024 up until August 14, 2024, 3,311,959 common share purchase warrants of SSC have been exercised at $0.20 per warrant for proceeds of $662,392.
Option Grant
SSC has made its annual grant of incentive stock options to employees, management, and its board of directors. A total of 2,816,000[2] stock options were granted at an exercise price of $0.37 per share and the options expire on August 14, 2027. The option grant remains subject to the final approval of the TSX Venture Exchange.
About Simply Solventless Concentrates Ltd.
SSC is a public company incorporated under the Business Corporations Act (Alberta). SSC’s mission is to provide pure, potent, terpene-rich ready to consume cannabis products to discerning cannabis consumers.
