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Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) reported a financial upturn in its fourth-quarter and full-year results ending Dec. 31, 2023, finding ways to lower its losses and beef its balance sheet.

The company’s net revenues for 2023 amounted to $101.1 million, representing a 7% rise from the previous year, with fourth-quarter revenues reaching $26.9 million, an increase of $2.2 million year-over-year.

“Thanks to a tremendous team effort, we achieved our profitability targets despite overall industry and macro-economic headwinds,” CEO Hugo Alves said in a statement.

“We focused and optimized our business, resulting in meaningful cost savings and industry-leading margins, all done while delivering quality products and meeting the ongoing demands of our consumers. We also successfully strengthened our balance sheet and improved the financial position of the Company.”

Still, Auxly reported a net loss of $44.5 million for the year. The figure represents a reduction in net loss versus the previous year’s $130.3 million. The firm said that the decrease in net loss was attributed to improved gross profits, lower operating expenses, and better overall financial performance.

“Although the Company did not meet its full growth ambitions, it made significant progress in optimizing its portfolio to expand margins by leveraging the Company’s competitive advantages in vapes, pre-rolls and dried flower products,” the company said, which are “the product formats which mirror how Canadians are choosing to consume cannabis, and represent, in aggregate, approximately 85% of the adult-use recreational market.”

Auxly reported an adjusted EBITDA of $1.5 million for the year and generated $8.2 million in cash from operations. The company’s gross margin on finished cannabis inventory sold was 34% for the year, peaking at 40% in the fourth quarter.

The financial report also noted Auxly’s market performance, including its position as the fifth-largest licensed producer in Canada’s recreational cannabis market, capturing 5% of total market share. The company has seen success in the vape category and expanded its product line in the pre-roll and dried flower sectors.

Following the end of the fiscal year, Auxly amended its credit facility and improved its balance sheet, mostly through a previously announced financing deal with Imperial Brands plc, which converted $123.4 million of debt into equity in Auxly.

The post Auxly ups revenue to $101M, cuts losses appeared first on Green Market Report.

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Adam Jackson, KahliBuds, 420GrowLife