Canadian cannabis producer and distributor Entourage Health Corp. (TSXV:ENTG) (OTCQX:ETRGF) (FSE: 4WE), announced its financial results this week for the fiscal year that ended Dec. 31, 2023.
The Toronto-based company reported a total net revenue of CA$40.7 million ($29.8 million) in 2023, slightly down from CA$40.9 million in 2022.
However, gross profit before fair value changes reached CA$2.4 million in the same period, representing a 126% year-over-year increase.
"In 2023, Entourage made significant strides, advancing production and diversifying our market presence with innovative products," said George Scorsis, Entourage's CEO and executive chair. "Dime Bag's success is a prime example—quickly rising to become one of Ontario's fastest-growing pre-roll brands and maintaining its market leadership for two consecutive quarters. Driven by surging demand for our products and the effectiveness of our enhanced business model, we're achieving growth while improving cost efficiency, firmly establishing ourselves in a favorable financial position."
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FY 2023 Financial Highlights
- Net loss and comprehensive loss amounted to CA$46.2 million, down from CA$123.1 million in the prior year, representing a 62.5% year-over-year decrease.
- Selling, general and administrative expenses totaled CA$26.1 million, compared to CA$30.3 million in 2022.
- EBITDA came in negative at CA$21.3 million, up from an EBITDA loss of CA$99.7 million in 2022, representing a year-over-year increase of 79%, due to the discontinuation of cultivation activities.
- As of Dec. 31, the company had CA$31.4 million in total assets, down from CA$46.5 million in 2022.
- Total liabilities amounted to CA$178.7 million, up from CA$147.7 million in the prior year.
"In the past year, we have achieved positive results that are a solid reflection of the discipline we have put into our business and the committed work of our team members," Vaani Maharaj, the company's CFO said. "We've fine-tuned our production methodologies, identified efficiencies, and significantly reduced expenditures, collectively forging a robust cost-saving framework."
ETRGF Price Action
Entourage's shares traded 7.33% lower at $0.0091 per share at the time of writing on Tuesday morning.
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- Entourage Health Reports FY22 Revenue of $54.5M, Loss Of $123.15M
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