Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) reported its financial results for 2024 late after the market closed on Tuesday. In the fourth quarter, sales reached C$18.75 million. That was an increase of C$1.7 million over third-quarter revenues. Rubicon credits its growth to two of its most popular brands, Simply Bare & 1964.
The full-year earning
Revenue for the entire year increased from C$52million in 2023 to C$63millions for 2024. Rubicon stated that the first half 2024 of its fiscal year was adversely affected by a product mix driven by low-margin innovation, price compression and a move toward bigger flower formats. According to the filing by the company, in the second half “we refocused our efforts on the promotion of more profitable SKUs. We achieved a Gross Profit prior fair value adjustments/Net Sales, which was up from 28 percent in the first.”
Still, net losses grew to C$2.5 million in 2024 from last year’s net losses of C$1.8 million. Cash was C$9.8M at the end if 2024 compared to C$9.7M last year. Operational expenses also increased from C$14.2 to C$16.5 for the same company.
Rubicon Organics has had another record-breaking year in 2024, growing by 21% over the previous year and outpacing the market’s growth. The vape launches, which are the most extensive and rapid in company history, demonstrate the value of premium brands as well as our ability to generate growth by leveraging reputation, high-quality and innovative innovation,” stated Margaret Brodie.
Rubicon released 1964 resin vapes with only two SKUs in May of 2024. The company captured 8,6% of market share of resin vapes for 2024 and 13,4% in the final quarter of 2024. According to the company, resin vapes have gained market share due to increased distribution and sales rates supported by five SKUs on the market.
The future
Brodie said, “Shifting dynamics on the market are creating a Canadian supply shortage, which creates significant opportunities to established operators. At the same, top Canadian producers are finding more opportunities on international markets. “We are thrilled to be able to increase our growth strategy in order meet the increasing demand for premium brands at home as well as abroad.”
Rubicon is moving ahead with its plans to purchase the Hope Facility. This will allow it to significantly increase its annual capacity. The Hope Facility’s annual capacity will be increased by over 40% over the Delta Facility. This acquisition should close by the end of the second quarter 2025. Rubicon expects that it will be operating at its full capacity by year’s end but won’t contribute to revenue until 2026.
Investors expect to receive additional debt finance related to Hope Facility.