Avant Brands Inc., (TSX:AVNT), posted record financial results in fiscal 2024 that ended on Nov. 30. The company’s growth was largely due to increased international sales. Exports now account for two thirds of its net revenues.
This is a 32% increase in revenue from last year. The company said that after deducting excise tax of $4.2 millions, net revenues were $35.8 Million, an increase of 36%.
“Record revenues, significant international growth, and improved adjusted net income – fiscal 2024 was a landmark year for Avant Brands,” founder and CEO Norton Singhavon said in a statement. We are committed to building upon this success, and creating value over the long term for all of our stakeholders.
The company’s export wholesale revenue saw the biggest jump, climbing 107% to C$19.4 million versus fiscal 2023, as Avant pushed more aggressively into markets abroad – especially in Australia, Germany, and Israel. Exports in the last quarter reached a new record of C$7.3m, an increase of 352% over the previous year. They now account for 66% the net revenues.
The company’s strategy is changing to international markets because the wholesale export revenue is not subject to local excise tax.
Cannabis production rose by 19% in the fourth quarter to 12,643 kilograms. Meanwhile, sales volumes nearly doubled to 13,560 kilograms with an increase of 91%. Sales were particularly good in the fourth quarter, with an increase of 244% in volume over 2023.
Avant reported a C$1.8m gross loss in its fourth quarter, which is a drop from the C$1m profit it had in 2023’s fourth quarter. According to the company, this decrease was due to “non cash impacts on biological asset values,” but that these were partly offset by higher revenues.
In fiscal year 2023, the net loss was C$5.2million. A C$6million charge for goodwill impairment, and a C$3.8million loss on construction in process were mainly responsible for the increased loss.
In the fourth quarter, adjusted EBITDA reached C$2.3million. For the quarter, adjusted net income reached C$2.7 Million. Auditors in their filings did note a “material concern related to continuing business” based on the company’s C$88m accumulated deficit as of November 30, 2024.
In fiscal year 2025, Avant plans to expand its international market share in the existing markets, while also exploring other territories, such as the Czech Republic and Poland. Avant is looking to partner with Canadian producers who are interested in growing their strains on contract for the global market.
The company stated in a press release that “this initiative will complement existing production capacities and ensure a constant supply of high quality products to international customers.”