The Company's Fiscal Year 2023 results, demonstrate growth across key financial metrics. Highlights include: Record Gross Revenues: Increasing to a record
Record Cash Flow from Operations-1: Achieving a record
Record Adjusted EBITDA-2: Reaching a record
Continued Positive Performance: Maintaining two consecutive fiscal years of positive cash flow and positive Adjusted EBITDA.
Norton Singhavon, Founder and CEO commented: 'We're thrilled by the remarkable growth across all key financial metrics during Fiscal Year 2023, showcasing our dedication to strategic excellence and operational efficiency. The successful integration of the Flowr Group Okanagan sets the stage for even greater success in Fiscal Year 2024 and beyond, bolstering our expansion efforts and strengthening our position at a global scale. Additionally, the two strategic acquisitions we made during the Fiscal Year 2023 underscores our commitment to long-term success and maximizing shareholder value in a dynamic market.'
Fiscal 2023 Financial Highlights
Gross Revenue was a record of
Net Revenue was a record of
Recreational Net Revenue was a record of
Export Revenue was a record of
Overall gross margin-3 of 34%, (vs. 32% FY2022)
Recreational gross margin of 48%
Export gross margin of 35%
Overall margin reduced by negative margin B2B sales of aged and out of spec product.
Total of 7,105 kg of cannabis sold (+93% vs. FY2022)
Overall weighted average selling price for flower decreased to
Cash Flow from Operations1 was a record of positive
Adjusted EBITDA-2 was a record of
Adjusted EBITDA Margin-2 (of Net Revenue) of 17%
Selling, General and Administrative Expenses and Corporate Expenses of
Net loss from operations of
Sixth consecutive quarter of positive Cash Flow-1 from Operations
Fiscal 2023 Corporate Highlights
Global Distribution: The Company's global distribution channels are experiencing significant growth, with a 78% year-over-year increase. This channel represents Avant's fastest-growing revenue stream, propelling the Company into an exciting phase of expansion. It offers a prime opportunity for Avant to elevate its flagship brand, BLK MKTTM, at the global stage, marking a significant milestone in the Company's journey towards international recognition and success.
3PL Ventures: The Company executed a buy-out of the remaining 50% of the issued and outstanding shares of 3PL
Fiscal 2024 Outlook
In the fourth quarter of Fiscal 2023, Avant encountered a temporary decline in sales due to the accumulation of products for large export shipments, all of which were subsequently delivered in the first quarter of 2024. Additionally, declining purchase orders from
Additionally, the downturn in Avant's market performance with the OCS was compounded by its limited product visibility and support within major
Despite the short-term challenges, Avant remains committed to aggressively competing in the Canadian adult-use market while expanding its global distribution channels. The Company anticipates significant growth from global sales, with expected increases in gross revenues ranging between
About
Avant stands at the forefront of the cannabis industry as a leading innovator and provider of ultra-premium cannabis products. With a network of operational facilities spanning
Avant's diverse product range is distributed through three distinct sales channels: recreational, medical, and export. Among its recreational offerings are renowned consumer brands like BLK MKT, Tenzo, Cognscente, and Treehugger, available across key markets including
As a publicly traded corporation, Avant is listed on the
Contact:
Tel: 1-800-351-6358
Email: ir@avantbrands.ca
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain 'forward-looking information' as defined under applicable Canadian securities legislation, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words 'may', 'would', 'could', 'should', 'will', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'expect' or similar expressions and includes information regarding: the Company's the Company's dedication to strategic excellence and operational efficiency; expected success and growth in Fiscal 2024 and beyond; the Company's commitment to long-term success and maximizing shareholder value; the Company's expectations regarding significant cash flows; the Company's expectations regarding the Flowr Facility; the Company's intentions to elevate its flagship brand, BLK MKTTM, at the global stage; opportunities for innovation, streamlining and optimization in connection with the acquisition of the remaining 50% of 3PL; management's expectations regarding growth in Canadian adult-use sales in connection with the Company's
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; the impact of COVID-19 and the risk factors set out in the Company's annual information form dated
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speak only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
This news release refers to certain financial performance measures that are not defined by and do not have a standardized meaning under International Financial Reporting Standards ('IFRS') as issued by the
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