Avant Brands Inc. (OTCQX:AVTBF) (TSX:AVNT)(FRA:1BU0) released its financial results for the first quarter ended February 28, 2022.
Key Financial Highlights
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Achieved historical record gross revenues of CA$4.6 million ($3.65 million), compared to CA$2.8 million, an increase of $1.8 million or 67%, with net revenue also being a record
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Net loss from operations was CA$1.1 million, compared to net loss from operations of CA$2.7 million, an improvement of CA$1.6 million, or 61%. Comprehensive loss was CA$0.5 million, compared to CA$7.7 million, representing an improvement of CA$7.2 million or 94%
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Achieved positive Adjusted EBITDA of CA$0.1 million, compared to an Adjusted EBITDA loss of CA$1.2 million, an improvement of CA$1.3 million or 107%
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Recreational cannabis sales of CA$2.5 million, compared to CA$2.0 million, an increase of CA$0.5 million or 25%, demonstrating the significant demand for Avant's premium cannabis brands
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Gross margin before fair value adjustments was CA$1.0 million, compared to CA$0.8 million, with overall weighted gross margin percentage of 23% compared to 34%. The decrease in gross margin percentage was due to a large bulk export sale and an increase in volume of its co-packing partnership with Habitat
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Operating expenses from continuing operations were CA$1.3 million, compared to CA$2.2 million, an improvement of CA$0.9 million or 40%, as a result of normalized operations without the many one-time professional fees the company experienced during fiscal 2021
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Maintained a strong capital position with approximately CA$11.7 million of cash, CA$22.8 million of working capital and no debt
"Q1 2022 saw our revenue more than double over the same period last year, primarily from new products and international exports," stated Norton Singhavon, founder and CEO of Avant. "We are confident that our new cultivars, brand activations, production innovation and multi-channel sales strategy will continue our path to success for the fiscal 2022 year and beyond."
Other Highlights
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Successfully expanded global cannabis exports with shipments totaling over 375kg of dried cannabis during the quarter
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Sold a total of 885kg of cannabis, representing an increase of 524kg, or 145% in volume
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Overall weighted average selling price of recreational cannabis maintained at CA$7.12 (including excise tax), compared to CA$7.25 per gram
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