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Montreal-based The Good Shroom Co. (TSXV: MUSH) continued its small but noteworthy profitable streak into its second fiscal quarter of 2024, which ended Jan. 31. This week, the company reported a C$56,017 net profit for the period against C$1.1 million in revenue.

The news follows The Good Shroom’s profitable first quarter, which closed Oct. 31 last year, and netted the company C$92,126 in profit.

The profitable streak, which began in the third quarter last fiscal year, is a relatively new one for The Good Shroom Co., which has made a significant turnaround from two years ago, when it lost C$244,373, and even from a year ago, when the company lost C$95,116.

Marijuana sales have fueled the turnaround, with cannabis goods comprising 96% of company sales. The other 4% of sales come from wellness beverages.

The profitable quarter also came despite a supply chain disruption that left The Good Shroom Co. without the ability to restock “two key products” for about three weeks during the quarter, the company reported, which created a revenue shortfall.

The Good Shroom Co. also noted in a press release that it owes zero in excise taxes to the Canadian government, despite press reports about financial distress in the industry, including widespread excise taxes owed by other cannabis companies.

“It is disconcerting that the government’s leniency towards noncompliant companies in providing payment plans for excise owed, which has led to an uneven playing field, disadvantages compliant entities like ours,” the company said in the release. “Our prudent management practices have enabled us to maintain profitability amidst an industry landscape marred by heavy losses and uncertainties.”

CEO Eric Ronsse went on to predict “significant growth opportunities” for The Good Shroom Co., particularly in Quebec, where the company has new product launches slated for April and May, but also in Alberta.

“Quebec’s cannabis market size exceeding $600 million annually and expected growth signify ample opportunities for market share expansion. We are well-positioned to capitalize on this potential, inch by inch,” Ronsse said.

At the end of January, The Good Shroom Co. had C$1.7 million in total assets, including C$353,873 in cash, against C$1 million in total liabilities.

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via www.KahliBuds.com

John Schroyer, KahliBuds, 420GrowLife