CanadaBis Capital Inc. reported revenue for the second quarter fiscal 2025 of C$4.9 Million, which is an increase from C$4.3 Million for the same time period the year before. The company’s net income, however, was a little lower.
In the period ending Jan. 31st, the cannabis processor and producer posted a net income of C$96.917, down from C$109.901 during the similar period in fiscal 2024. The net income dropped more dramatically in the first half year of the fiscal, dropping from C$817.018 the year before to C$418,486.
EBITDA for the first quarter of the fiscal year 2024 was C$564,609, while the adjusted EBITDA fell to C$434,158. In the last six months, EBITDA was C$1.1m, down from C$1.68m a year ago.
In a press release, CEO Travis McIntyre stated that “our Q2 results demonstrate the continued momentum of our operations. We are focused on increasing revenue and optimizing our margins throughout our portfolio.” The increase of (C$2million) in our gross revenue year-over-year reflects the strategic initiatives and hard work we have undertaken to improve our market position.
According to its MD&A, the company’s profitability has been “negatively impacted by excise tax as a percentage of sales due to selling extract products with higher THC and an increase in milled flower revenue.” According to its MD&A, the company’s profitability has been “negatively impacted by excise taxes as a percent of sales due to selling extract products with higher THC and an increase in milled flower revenue.”
As a result, milled-flower sales were discontinued during the first quarter of the year “due high taxes and low profit margins as well as increased stock and administrative costs associated with expanding product lines.”
CanadaBis reported that the gross margins on its diamond and shatter bulk extraction sales and international flower sales to Portugal ranged from 50-60%. CanadaBis believes that the product lines will have higher gross margins going forward because they are not subject to an excise tax.
CanadaBis is continuing to pursue its acquisition of Simply Solventless Concentrates Ltd. despite the decline in profit metrics. CanadaBis’s current trading price, valued at C$16m, represents a 78% rise over that value.
The combined entity will be ranked second in Canada for pre-rolls, and third overall. Quebec,” Green Market Report Report at the moment of announcement.Â
In the last quarter, additional measures were taken to cut costs. These included renegotiating prices for input materials and implementing new processes in production lines. The management expects that the initiatives will deliver tangible benefits through 2025.
The firm cited its Butane Hydrocarbon (BHO), extraction process, as being a major differentiator.
CanadaBis is operated by several subsidiaries that are wholly-owned, such as Stigma Grow, Stigma Pharmaceuticals and Full Spectrum Labs. Stigma Roots operates under the name of Stigma Roots. A retail division, 2103157 Alberta Ltd., also falls into this category. Goldstream Cannabis is also owned by the company at a stake of 95%.