- SPRWF released impressive numbers in its latest financial report
- The company highlighted its stable position in a roller-coaster industry
- The 7ACRES brand plays a key role in the company’s current and future growth initiatives
The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) is ending its FY2019 as one of the few Canadian cannabis businesses building sustainable operations and valuable brands, according to the company’s FY2019 year-end report (http://cnw.fm/vQrj1). The report announced impressive numbers that indicate the company’s stable position in a sector that has been rocked by up-and-down performance throughout the year.
The company released its Q4 2019 and year-end financial results, noting the following:
- Total revenue for FY2019 was $41.8 million, a 370 percent increase from FY2018, which totaled $8.9 million;
- The company achieved its first positive adjusted EBITDA quarter of $3.2 million;
- Q4 2019 net revenue totaled $19 million, a 90 percent increase from Q3 2019, which reached $10 million; and
- Net revenue for fiscal 2020 is forecast to be between $150 million and $180 million, with positive adjusted EBITDA expected for fiscal 2020.
The company pointed to its core recreational flower brand, 7ACRES, as key to its impressive revenue performance. Committed to providing enthusiasts with hand-crafted cannabis flower that delivers an uncompromised experience, revenue from 7ACRES grew 443 percent year-over-year, from $3.5 million in Q4 2018 to $19 million in Q4 2019, and 90 percent quarter-over-quarter, from $10 million in Q3 2019.
“Our positive adjusted EBITDA and significant revenue growth in the fourth quarter reflects the rapid scale of our 7ACRES business and continued strong sales pricing for our brands from the provinces as we transition our premium supply to recreational sales channels,” Supreme Cannabis CEO Navdeep Dhaliwal stated in a news release.
As 7ACRES focused on transitioning sales from its legacy wholesale contracts to recreational sales channels, the brand’s revenue from recreational markets increased by 51 percent between Q3 2019 and Q4 2019. In addition, 7ACRES continues to build equity among consumers, with the promise of new product forms and introduction of new proprietary strains like Jack Haze.
Jack Haze is the first sativa-dominant strain to enter the market under the 7ACRES brand and one of the few sativa-dominant strains available in Canada (http://cnw.fm/v493B). With its novel traits and differentiated profile, Jack Haze is securing premium pricing in the provinces where it is available.
Supreme Cannabis CEO, Navdeep Dhaliwal concluded his remarks by commenting on some key growth drivers for the company.
“We began fiscal 2020 with two accretive acquisitions that expanded our addressable markets and provided valuable licensed operating assets and focused expertise,” Dhaliwal continued. “As we integrate these businesses and realize further efficiencies from our scaled 7ACRES operations, we expect all of our brands to meaningfully contribute to the revenue we have forecasted for fiscal 2020. Amidst the noise of this new marketplace, Supreme Cannabis has taken a strategic and disciplined approach to develop a focused business with clear pillars: best-in-class infrastructure, top consumer brands, advanced intellectual property, and high-impact and capital-light exposure to developing international markets.”
Supreme Cannabis’ portfolio includes 7ACRES, its wholly owned subsidiary and multi-award-winning brand; Blissco Cannabis Corp., a wellness cannabis brand and a multi-licensed processor and distributor based in British Columbia; Truverra Inc., a global medicinal cannabis brand and licensed cultivator; Cambium Plant Sciences, a plant genetics and cultivation IP company; Medigrow Lesotho, an cannabis oil producer located in southern Africa; Supreme Heights, an investment platform focused on CBD brands in the UK and Europe; and a brand partnership and licensing deal with Khalifa Kush Canada ULC.
For more information, visit the company’s website at www.Supreme.ca
NOTE TO INVESTORS: The latest news and updates relating to SPRWF are available in the company’s newsroom at http://cnw.fm/SPRWF
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