Canadian cannabis producer and distributor Entourage Health Corp. (TSXV:ENTG) (OTCQX:ETRGF) (FSE:4WE) announced its first quarter financial results on Tuesday for the three months ended March 31, 2024.
The Toronto-based company reported a total revenue of CA$16.4 million ($12 million) (net revenue of CA$12.7 million, before excise duties and discounts), representing a 9% year-over-year increase.
"Entourage's first quarter results are a testament to our robust financial health and strategic approach to business operations, positioning us for success throughout 2024," George Scorsis, the company's chair and CEO said. "With defined infrastructure and supply agreements in place, we are well-positioned to continue delivering the accelerated growth we have already seen develop in Q1."
Q1 2024 Financial Highlights
- Gross profit before changes in fair value amounted to CA$5.8 million, up from CA$3 million in the prior year's period.
- Gross margin before changes in fair value was 45%, up from 25% in the same quarter of fiscal 2023.
- Loss and comprehensive loss was CA$6.3 million, down from CA$9.5 million in the corresponding quarter of last year.
- EBITDA (non-IFRS measure) came in positive at CA$533, 000 compared to a negative EBITDA of CA$3.9 million in the prior year's period.
- Cash and cash equivalents were CA$9.4 million and working capital was CA$152.9 million as of March 31, 2024, down from CA$11.2 million and up from CA$146.9 million, respectively, during the period ended March 31, 2023.
As yet another earnings reporting season wraps up it is important to understand what these figures mean for the future of the industry. Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.
"Our team's relentless focus on efficient execution has led to a solid performance, reflected in improved profitability and a significant increase in EBITDA, marking the first positive quarter," Scorsis continued. "We are also seeing substantial growth in our adult-use business as we continue to announce and launch a range of innovative products across Canada set to generate ongoing interest and excitement among consumers."
ETRGF Price Action
Entourage's shares traded 38.6% higher at CA$0.0132 per share at the market close on Friday.
Related News
- Cannabis Co. Entourage Health Reports 126% YoY Increase In 2023 Gross Profit, Cuts Losses Significantly
- Canadian Cannabis Co. Entourage Health Q3 Revenue Slides 8.8% YoY – But Margins Sore, Losses Decline
- Entourage Health Q1 Revenue Declines 4.8% YoY, What About Adjusted EBITDA?