Canadian Weed Producer Red White & Bloom Narrows Loss, Reports 15% YoY Drop In Q1 Revenue As It Wraps Up Aleafia Acquisition

Canadian cannabis company Red White & Bloom Brands Inc. RWB announced on Thursday that it has filed its condensed interim consolidated financial statements for its first quarter ended March 31, 2024.

The company wrapped up its previously announced acquisition of Aleafia Health Inc. and its subsidiaries in January.

That deal provides RWB recreational cannabis sales channels in five Canadian provinces, including Ontario, Alberta, British Columbia, Saskatchewan and Manitoba; medical cannabis sales channels across Canada direct to patient subscribers; international cannabis sales channels via export to Australia, Germany and the United Kingdom; and a virtual medical cannabis clinic, to name a few.

"With the closing behind us, the RWB management team was finally given the opportunity to begin the process of implementing changes and commencing integration," Colby De Zen, the company's president, said.

As yet another earnings reporting season wraps up, it is important to understand what these figures mean for the future of the industry. Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

Q1 2024 Financial Highlights

• Revenues were CA$22.6 million ($16.5 million), representing a CA$2.7 million increase over the previous quarter and a decrease of CA$3.9 million year-over-year.
• Gross profit, before fair value adjustments, was CA$7.9 million, representing a $0.5 million sequential increase, and a decrease from CA$9.4 million in the prior year's period primarily due to lower sales volume.
• Operating expenses totaled CA$12.1 million, an increase of CA$2.9 million compared to CA$9.2 million in the prior year's period.
• Adjusted EBITDA came in positive at CA$137 000 million, representing a decrease of CA$1.7 million compared to an adjusted EBITDA gain of CA$1.8 million in the corresponding period of fiscal 2023.
• Net loss from continuing operations attributable to shareholders was CA$3.7 million, representing a year-over-year improvement from CA$6.5 million net loss in the first quarter of last year.

See also: Canadian Weed Producer Reduces Net Loss For 2023 But Reports Higher Debt