Auxly Reports 2024 Fourth Quarter and Full Year Results: Achieves Record Sales and Profitability, Back Forty exits 2024 as the #1 Brand in Canada
TORONTO, March 20, 2025 /PRNewswire/ - Auxly Cannabis Group Inc. (TSX:XLY) (OTCQB:CBWTF) ("Auxly" or the "Company") a leading consumer packaged goods company in the cannabis products market, today released its financial results for the fourth quarter and full year ended December 31, 2024. These filings and additional information regarding Auxly are available for review on SEDAR at www.sedar.com. All amounts are Canadian dollars except common shares ("Shares") and per Share amounts.
Highlights for the fourth quarter ended December 31, 2024 and subsequent events:
Net revenue of $34.6 million, an increase of 29% over the prior year period.
Gross Margin on Finished Cannabis Inventory Sold1, of 54% in 2024, up from 40% in 2023.
SG&A of $9.3 million, a reduction of 5% over the prior year period.
Adjusted EBITDA1 of $11.0 million or 32% of net revenue, up from $2.3 million in 2023.
Cash flow from operations of $3.2 million and cash at quarter end totalled $18.4 million.
4th largest Canadian Licensed Producer, with market share of 6.0% at quarter end2.
Back Forty exited the quarter as the #1 cannabis brand in Canada and remains the #1 brand today2.
Highlights for the year ended December 31, 2024:
Net revenue of $122.3 million, an increase of 21% over the prior year.
Gross Margin on Finished Cannabis Inventory Sold1 of 46% in 2024, up from 34% in 2023.
SG&A of $35.7 million, a reduction of 8% compared to 2023.
Adjusted EBITDA1 of $26.7 million or 22% of net revenue, up from $1.5 million in 2023.
Total Debt1 reduced by 56% in 2024 with the conversion of over $123 million of debt into shares by Imperial Brands plc and repayment of the outstanding standby debenture facility.
The Company's Back Forty all-in-one vape was recognized by budtenders as the "Innovation of the Year" at the 2024 KIND awards.
The Company held the #1 position nationally in the non-infused pre-roll category.
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1 Non-IFRS or supplementary financial measure. Refer to the Non-GAAP Measures section in the MD&A for definitions.
2 All retail data is sourced from Hifyre IQ, as of December 2024 and March 2025.
Management Commentary
"The Auxly team delivered an outstanding year, driven by our unwavering commitment to innovation, gross margin expansion, and operational excellence," said Hugo Alves, Founder and Chief Executive Officer of Auxly. "With demand for THC in Canada and around the world at an all-time high, Auxly is uniquely positioned to capitalize on this opportunity through our large-scale, low-cost cultivation advantage and innovation leadership in the largest, fastest-growing product categories. We are just getting started and excited about the road ahead and will remain focused on driving sustainable, profitable growth and creating meaningful value for all of our stakeholders."
Auxly President Mike Lickver echoed this optimism, stating, "Our success is a testament to the dedication of our team, the loyalty of our consumers, and the trust of our partners. We made tremendous strides in brand awareness, culminating in Back Forty emerging as the #1 cannabis brand in Canada by the end of 2024. As we move forward, our commitment to superior product quality and consumer-centric brands will continue to strengthen Auxly's leadership in the Canadian cannabis market."
Year End Highlights and Key Performance Indicators
For the three months ended:
December 31,
December 31,
(000's)
2024
2023
Change
% Change
Net revenues
$ 34,626
$ 26,909
$ 7,717
29 %
Gross margin on finished cannabis inventory sold*
18,684
10,804
7,880
73 %
Gross margin on finished cannabis inventory sold (%)*
54 %
40 %
14 %
35 %
Net income/(loss)
4,423
(54,020)
58,443
108 %
Adjusted EBITDA*
11,006
2,294
8,712
380 %
Weighted average shares outstanding - basic
1,284,329,265
1,005,194,829
279,134,436
28 %
For the years ended:
December 31,
December 31,
(000's)
2024
2023
Change
% Change
Net revenues
$ 122,329
$ 101,078
$ 21,251
21 %
Gross margin on finished cannabis inventory sold*
55,861
34,295
21,566
63 %
Gross margin on finished cannabis inventory sold (%)*
46 %
34 %
12 %
35 %
Net income/(loss)
(16,348)
(44,511)
28,163
63 %
Adjusted EBITDA*
26,705
1,471
25,234
1715 %
Weighted average shares outstanding - basic
1,204,591,972
990,994,056
213,597,916
22 %
As at:
December 31,
December 31,
(000's)
2024
2022
Change
% Change
Cash and equivalents
$ 18,356
$ 15,608
$ 2,748
18 %
Total assets
261,530
261,904
(374)
0 %
Debt*
54,683
123,579
(68,896)
-56 %
*Non-IFRS or supplementary financial measure. Refer to the Non-GAAP Measures section for definitions.
Results of Operations
(000's)
For the years ended:
December 31, 2024
December 31, 2023
Revenues
Revenue from sales of cannabis products
$ 185,666
$ 151,762
Excise taxes
(63,337)
(50,684)
Total Net Revenues
122,329
101,078
Cost of Sales
Costs of finished cannabis inventory sold
66,468
66,783
Inventory impairment
2,332
10,474
Gross profit/(loss) excluding fair value items
53,529
23,821
Unrealized fair value gain / (loss) on biological transformation
32,627
16,207
Realized fair value gain/(loss) on inventory
(26,227)
(18,751)
Gross profit
59,929
21,277
Expenses
