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Nova Cannabis Inc. (TSX: NOVC) posted quality revenue and profits in its fourth-quarter and annual financials ending Dec. 31, 2023, as it continues to make its way out of the red.

The Edmonton-based firm saw revenue rise to $259.3 million, up 14.5% from $226.4 million the previous year. The company’s financials showed a net profit of $3 million, a reversal from a $11.2 million loss in 2022.

Gross profit was $61.6 million, accounting for 24% of its sales, versus 19% or $43.9 million in the preceding year.

Fourth-quarter earnings saw a consistent revenue stream of $67.4 million, matching the third quarter and showing a 10% year-over-year rise. The company made a profit of $400,000 during the quarter, a big improvement versus the same time in 2022 when the firm lost $4.8 million, according to filings. That’s an earnings increase of more than double (109%).

“Nova has achieved significant milestones this year, marked by sequential gross profit growth and positive net earnings for three consecutive quarters,” CEO Marcie Kiziak said in a statement.

The CEO thanked improved gross profit margins, efficient inventory management, and the expansion of its data licensing program, which generated $4.2 million in the final quarter of 2023. The company’s gross profit for the same quarter was $17.1 million or 25% of revenue.

By the end of 2023, Nova operated 96 stores, up from the previous count, with a meaningful market presence in Alberta and Ontario. The company noted its growth in these regions, estimating its market share at approximately 19% in Alberta and 4% in Ontario.

The year’s operational gains included enhanced cash flow from operations, totaling $11.7 million, an improvement from the slight negative cash flow in 2022. Nova’s cash reserves amounted to $13.8 million as of Dec. 31, 2023.

Nova said it’ll continue to target expansion in the Canadian cannabis retail market, with a focus on British Columbia and Ontario. The company pointed to its Value Buds brand and private label products as key components of that growth strategy.

SNDL scrap

Nova and Canadian grower SNDL (Nasdaq: SNDL) also decided not to proceed with their planned partnership due to regulatory challenges, the companies announced in November.

Despite so, SNDL said it would still support Nova by extending the due date for a loan they provided to March 31, 2024. SNDL also decided not to go ahead with giving Nova’s shares to SNDL’s shareholders as initially planned.

However, both companies said they would honor their existing management and administrative services agreement. SNDL’s CEO, Zach George, said that the company would continue to support Nova’s growth and business development.

Originally, the partnership was supposed to include merging over 20 of SNDL’s cannabis stores in Ontario and Alberta with Nova’s retail operations. The deal’s closure had been postponed multiple times before due to regulatory reviews in Canada.

The post Nova notches revenue momentum, net income sees green appeared first on Green Market Report.

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Adam Jackson, KahliBuds, 420GrowLife