Canadian cannabis company Adastra Holdings Ltd. (CSE:XTRX)(FRA:D2EP) (OTCPK:XTXXF) its financial results reported Tuesday for the fourth quarter and the year ended Dec. 31, 2023.

For the fourth quarter of 2024, the British Columbia-based cannabis concentrates producer reported gross revenue of CA$9.1 million ($6.7 million), compared to CA$6.8 million in the same period of 2022.

"During 2023, Adastra experienced significant sales growth of $37.7 million, representing a 108% increase compared to the same period last year, and marking our third consecutive year of achieving record revenue," stated Lachlan McLeod, interim CEO of Adastra. "The increased demand for our in-house brand, Endgame Extracts, has been a key driver behind this success, evident in our continued success with numerous best-selling SKUs in B.C, Alberta, and Ontario according to Headset."

Fiscal Year 2023 Summary

• Net revenue amounted to CA$22.2 million, up 67% from CA$13.3 million in 2022.
• Record gross profit of CA$7.6 million for 2023, representing a 24% increase compared to CA6.1 million in 2022.
• Net loss was CA$3.54 million, up by 17% from the previous year.
• Loss from operations of CA$1.8 million, compared to CA$800,000 for 2022, an increase of 124% due to the company's increased spending on marketing initiatives to increase brand awareness of the suite of products under the Endgame Extracts brand.
• Record cash provided by operating activities of CA$1.9 million compared to CA$900,000 in 2022 as the company closely managed cash flows during the year.
• As of Dec. 31, 2023, Adastra had a working capital deficiency of around CA$6 million and a deficit of CA$21.7 million.

Q4 2023 Financial Takeaways

• Gross revenues of CA$9.1 million in Q4 2023, compared to CA$6.8 million in the fourth quarter of 2022, representing an increase of 34%, due to an increase in throughput of the Langley Facility and increased deliveries to provincial distributors.
• Net loss and comprehensive loss of CA$1.5 million during, compared to CA$2.6 million during the third quarter of 2023, a decrease of 43% quarter over quarter.

"Looking ahead to 2024, we expect to continue this momentum and have already set new records, including receiving a record single purchase order of $1 million in March 2024," McLeod added. "Moreover, we're committed to a renewed focus on cost-saving measures aimed at ensuring profitability. As we continue to grow, we aim to further strengthen our financial position and drive sustainable success."

Photo: Courtesy of iQoncept via Shutterstock