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Montreal cannabis producer Cannara Biotech reported a profit of 2.9 million Canadian dollars ($2.2 million) in its third quarter that ended in May, according to its recently released financial statements.
The net income for the company’s third quarter is 107% higher than the figure for the same quarter in 2022, when Cannara reported a CA$1.4 million profit, according to a news release.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) – another measure of profitability – for the quarter amounted to a positive CA$3.9 million.
Adjusted EBITDA through Cannara’s first three quarters of its fiscal year reached CA$8.6 million.
Cannara’s net sales in 2023’s March-May quarter increased by 57% to CA$15.9 million compared to the same three-month period in 2022.
Net revenue for the first nine months of fiscal 2023 jumped to CA$39.3 million – 63% higher over the same nine-month period last year.
Money left over after paying operating expenses and capital expenditures – or free cash flow – for the third quarter was CA$3.2 million, a 113% increase from CA$1.5 million in the third quarter of 2022.
“This past quarter was a tremendous success as Cannara grew its market share by more than 30% in Quebec and in Ontario, along with growing sales in (British Columbia) and the commencement of sales in a new market, Alberta, the second largest cannabis market in Canada,” CEO Zohar Krivorot said in a statement.
The company said its market share in Quebec grew to 9.3%, up from 7%.
In Ontario, the largest cannabis market in Canada, Cannara held a market share of 2.7%.
Cannara also said it increased its number of employees by 29% to support operational growth. The company employed 270 people as of May 2023.
The producer had CA$4 million in cash at the end of the quarter.
Cannara’s shares trade as LOVE on the Toronto Venture Exchange.