Heritage Cannabis Holdings Corp. (CSE:CANN) (OTCQB:HERTF) reported its financial results on Monday for the three- and twelve-month periods ended October 31, 2023, revealing an increase in gross margin of more than 50% for 2023 and 628% for the fourth quarter compared to last year.
David Schwede, CEO of the Toronto-based company, attributed it to the company's efforts to "optimize our products in 2023 while maintaining a close focus on production efficiencies, operational spending, and high gross margin sales."
Schwede added the company's products, like RAD vape products and Adults Only brand remain in high demand.
"In the U.S., we have six SKUs in New York – our newest state – and our more established business in Missouri and West Virginia saw strong growth with over $3.5 million in sales for the year," he continued. "With Q1 revenues and gross margins expected to continue this trend and SG&A expected to be down, we are keen to build on these successful ventures throughout 2024 and continue to explore additional revenue channels both in the U.S. and internationally."
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Q4 2023 Financial Highlights
- Net revenue slightly dropped year-over-year to CA$7.98 million ($5.9 million), from CA$8.03 million in the prior year's period.
- Cost of sales amounted to CA$4.9 million, down from CA$7.6 million in the prior year's period.
- Gross margin was CA$3.1 million, up from CA$426,112 in the same quarter of last year.
- General and administrative expenses amounted to CA$ 5.8 million, down from approximately CA$6 million.
- Comprehensive loss was CA$14.1 million, down from CA$26.9 million in the same period of 2022.
FY 2023 Financial Highlights
- Net revenue increased year-over-year to CA$29.8 million, from CA$29.6 million in the prior year's period.
- Cost of sales amounted to CA$17.7 million, down from CA$21.6 million in the prior year's period.
- Gross margin was CA$12 million, up from roughly CA$8 million in the same quarter of last year.
- General and administrative expenses amounted to CA$20.1 million, down from approximately $20.6 million.
- Comprehensive loss was CA$19.9 million, down from CA$23.9 million in the same period of 2022.
HERTF Price Action
Heritage's shares traded 1.6129% lower at $0.0061 per share at the time of writing on Tuesday mid-morning.
Now read: Heritage Cannabis Reports $8.79M Q3 2023 Revenue, Showing Strong YoY Growth
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