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CALGARY, AB, Sept. 17, 2024 /CNW/ - Simply Solventless Concentrates Ltd. (TSXV:HASH) ("SSC") is pleased to provide Q3 2024 gross revenue, adjusted EBITDA and normalized net income guidance including record projected quarterly gross revenue and the continuation of SSC's quarterly positive adjusted EBITDA and normalized net income streak to ten and eight quarters respectively. SSC is also pleased to announce its upcoming product launches.
Jeff Swainson, President and CEO of SSC, stated: "Q3 2024 is shaping up to be a transformative quarter for SSC with strong organic revenue growth in Astrolab, Frootyhooty and Lamplighter being complimented by the closing of our CannMart Inc. acquisition on September 12, 2024. The deployment of capital into CannMart Inc.'s Roilty and Zest Cannabis inventory is ramping revenue, and material cost reductions are being achieved through our CannMart restructuring efforts. Overall, Q3 2024's projected annualized gross revenue, adjusted EBITDA and normalized net income of $28,000,000, $4,000,000, and $3,600,000 respectively. SSC's projected September 2024 annualized gross revenue of $33,000,000 demonstrates our current revenue growth trajectory as we continue towards our goal of $40,000,000 annualized gross revenue, $6,200,000 annualized adjusted EBITDA and $6,000,000 annualized normalized net income."
Adjusted EBITDA and normalized net income are non-IFRS measures. See Non-IFRS Financial Measures, below.
Q3 2024 Guidance
SSC projects record quarterly gross revenue during Q3 2024 of approximately $7,000,000 (Q2 2024 - $4,232,663, Q3 2023 - $1,479,055), representing growth rates of 65% quarter over quarter and 373% compared to the same quarter last year. SSC's projected revenue growth is attributable to the organic growth of SSC's brands Astrolab and Frootyhooty and SSC's acquisition of CannMart Inc., including the brands Roilty and Zest Cannabis, on September 12, 2024.
SSC projects Q3 2024 adjusted EBITDA of approximately $1,000,000 (Q2 2024 - $952,986, Q3 2023 - $270,009) (see Non-IFRS Financial Measures, below), representing growth rates of 5% quarter over quarter and 270% compared to the same quarter last year, and normalized net income of approximately $900,000 (Q2 2024 - $890,815, Q3 2023 - $190,896) (see Non-IFRS Financial Measures, below), consistent with the prior quarter and a growth rate of 372% compared to the same quarter last year.
During Q3 2024 SSC has had slightly lower B2B and tolling revenue compared to Q2 2024 due to seasonality, as Q3 has historically lower B2B and tolling sales. This is expected to slightly reduce gross margins for Q3 2024. B2B and tolling revenue is expected to return to Q2 2024 levels during Q4 2024. SSC also expects that cost synergies related to the acquisition of CannMart Inc. will be fully realized by early Q4 2024, contributing to profitability.
SSC's streak of positive adjusted EBITDA and normalized net income is expected to extend to ten and eight quarters respectively.
Year to Date (Nine Months Ended September 30, 2024)
On a year-to-date basis, SSC projects record gross revenue for the nine months ended September 30, 2024 of approximately $14,354,895 (September 30, 2023 - $5,182,777), representing a growth rate of 177% compared to the same period in the prior year, adjusted EBITDA of approximately $2,564,557 (September 30, 2023 - $2,166,876) (see Non-IFRS Financial Measures, below), representing a growth rate of 18% compared to the same period in the prior year, and normalized net income of approximately $2,337,230 (September 30, 2023 - $1,869,706) (see Non-IFRS Financial Measures, below), representing a growth rate of 25% compared to the same period in the prior year.
Upcoming Product Launches
SSC is pleased to announce that it is launching 27 new products in Alberta in the near future, as follows:
Astrolab Launching October 2024:
Astrolab Galactic Sour Live Rosin Star Solventless Gummies.
Astrolab Galactic Sweet Live Rosin Star Solventless Gummies.
Astro Sampler 3-Pack Live Rosin Infused Pre-rolls.
Astrolab Squirt 90-189u Premium Cold Cure Live Rosin.
Astrolab Banjo 90-189u Premium Cold Cure Live Rosin.
Astrolab Launching November 2024:
Astrolab Interstellar Live Rosin Cream Soda.
Astrolab Interstellar Rocket Lime Live Rosin Soda.
Astrolab Summer Cherry Punch Live Rosin Infused Pre-rolls.
Frootyhooty Launching October 2024:
Frootyhooty Poppin' Peach Full Spectrum Loops.
Frootyhooty Wild Watermelon Coconut Full Spectrum Wedges.
Frootyhooty Pink Lemonade Full Spectrum Sours.
Frootyhooty Launching November 2024:
Frootyhooty Pink Lemonade Diamonds & Live Rosin Sauce.
Frootyhooty Pink Lemonade Distillate + Live Rosin 510 vape cart 1g.
Frootyhooty Pink Lemonade Distillate + Live Rosin Disposable 1g.
Roilty Launching October 2024:
Roil Lemon Haze Shatter.
Roilty Launching November 2024:
Roil Indica Live Resin Reserve Disposable Vape.
Roil Sativa Live Resin Reserve Disposable Vape.
Roil Sunrise Sativa Shatter.
Roil Sunset Indica Shatter.
Lamplighter Launching October 2024:
Honeydew Lime Prefilled Vape Cartridge.
Lamplighter Launching November 2024:
