Cannara Biotech Inc (FRA:8CB0)

Q2 2025 Cannara Biotech Inc Earnings Call Transcript

Apr 29, 2025 / 03:00 PM GMT

Release Date Price: €0.85 (+1.19%)

Transcript

Key Points

Positve

Cannara Biotech Inc (LOVFF) reported record revenue, gross profit, and operating income for fiscal Q2 2025, with net revenues of $26.6 million, up 6% quarter over quarter and 35% year over year.
The company achieved a record high gross profit before fair value adjustments of $10.8 million, with a gross margin of 41%, marking an 11% increase quarter over quarter.
Cannara Biotech Inc (LOVFF) has maintained 16 consecutive quarters of positive adjusted EBITDA and four consecutive quarters of positive net income.
The company is expanding its cultivation capacity by almost 20% with minimal capital outlay, which is expected to significantly enhance its production capabilities.
Cannara Biotech Inc (LOVFF) holds a strong market position in Quebec, with a 12.8% market share, and is the fastest-growing licensed producer in Canada, gaining market share nationally.

Negative

The company experienced a market share decline in Saskatchewan and Manitoba due to a transition to a new wholesale partner and prioritization of high-volume markets.
Operating cash flow for Q2 was an outflow of $2.6 million, and free cash flow was an outflow of $4 million, impacted by pre-paying excise tax obligations and advance deposits for packaging materials.
Cannara Biotech Inc (LOVFF) faces challenges in expanding its market share in provinces with strict sales and marketing restrictions, such as Quebec.
The company is not currently pursuing international expansion, which could limit growth opportunities compared to competitors exploring overseas markets.
There is a tightening supply-demand balance in the Canadian cannabis market, which could impact pricing and margins if not managed effectively.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

LOVE.V - Cannara Biotech Inc
Q2 2025 Cannara Biotech Inc Earnings Call
Apr 29, 2025 / 03:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning everyone and welcome to Canara Biotech's fiscal year Q2 earnings presentation for the 3 and 6 months ended February 28, 2025. My name is Scott Carroll, and I will act as a moderator for today's presentation. As a reminder, this presentation is being recorded.

Following the prepared remarks, we will conduct a question and answer session. If you haven't already done so, you may submit your questions to investors at Kra.ca or in the chat option in your conference browser. Should all submitted questions be addressed today, we will follow up accordingly via email.

Before we begin, please refer to slides 2 and 3 of our presentation. All information presented today is subject to our general disclaimers on

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