Rubicon Organics Inc. (TSXV:ROMJ) (OTCQX:ROMJF) reported its third quarter financial results on Tuesday for the three months ended Sept. 30, 2023, revealing a 5% year-over-year increase in revenue to CA$10 million ($7.26 million).
The Canadian cannabis producer also touted a sixth consecutive quarter of adjusted EBITDA profitability with CA$1.1 million in the third quarter, representing a year-over-year decrease of CA$0.8 million.
"Despite the challenges encountered in the demanding Canadian cannabis sector with competitive price compression alongside broader negative macroeconomic pressures faced by Canadian shoppers, we persist in fortifying the company's standing as a leading force in the premium cannabis market, and are looking forward to executing our strategy to leverage the strength of our leading premium brands," said Margaret Brodie, interim CEO and CFO.
Q3 2023 Financial Highlights
- Gross profit was CA$1.9 million, compared to CA$6 million in the corresponding quarter of last year.
- Achieved fifth consecutive quarter of operating cashflow positive of CA$1.4 million.
- Loss from operations amounted to CA$1.5 million, compared to income from operations of CA$2.2 million in the third quarter of last year.
Nine Months Ended Sept. 30
- Net revenue of CA$30.1 million, up from CA$24.5 million in the same period of 2022.
- Gross profit was CA$9 million, down from CA$11.7 million in the same period of last year.
- Adjusted EBITDA came in positive at CA$3.1 million, compared to CA$641,349 adjusted EBITDA gain in the corresponding period of 2022.
- Loss from operations totaled roughly CA$2 million, compared to CA$128,806 income from operations in the corresponding period of 2022.
- Growth in cash balance by CA$2.6 million from Sept. 30, 2022, from CA$6.8 million to CA$9.4 million.
- The Company had a working capital of CA$18.7 million as of Sept. 30, 2023, of which CA$9.4 million of cash on hand and CA$3.6 million in accounts receivable.
ROMJF Price Action
Rubicon's shares traded 23.33% lower at $0.345 per share at the time of writing on Wednesday morning.
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