Rubicon Organics Reports 2024 Financial Results

Highlights for the fourth quarter ended December 31, 2024 and subsequent events:

Record high net revenue of $14.2 million, an increase of 42% from Q4 2023

Achieved Adjusted EBITDA1 of $1.6 million (including $0.25 million of one-time ERP costs)

Achieved positive operating cashflows of $2.3 million and Free Cash Flows2 of $1.8 million

Secured $10 million credit facilities at interest rate of 6.75% for 5 years

Entered into purchase and sale agreement for Hope, BC facility, expanding capacity of premium flower by 40%3

Secured key international certification and delivered first international shipment

Highlights for the year ended December 31, 2024:

Record high net revenue of $48.7 million, an increase of 21% from 2023

Adjusted EBITDA1 of $4.0 million (including $0.9 million of one-time ERP costs)

Operating cash flow of $3.4 million

VANCOUVER, British Columbia, April 01, 2025 (GLOBE NEWSWIRE) -- Rubicon Organics Inc. (TSXV:ROMJ) (OTCQX:ROMJF) ("Rubicon Organics" or the "Company is Canada's leading premium licensed producer focused on cultivating and selling organic certified, premium and super-premium cannabis products, today reported its financial results for the year ended December 31, 2024 ("Q4 2024"). All amounts are expressed in Canadian dollars.

"2024 marked another record year for Rubicon Organics growing 21% year-over-year, dramatically outpacing market growth. Our vape launch, the fastest and widest in our company history, underscores the strength of our industry leading premium brands and our ability to drive growth through reputation and high-quality innovation." said Margaret Brodie, CEO.

Ms. Brodie added, "Shifting market dynamics are driving a supply shortage in Canada, creating significant opportunities for established operators. At the same time, international markets are increasingly opening up to top Canadian producers. We are excited to accelerate our expansion strategy and meet the growing demand for our premium brands both at home and abroad."

"We successfully navigated early 2024 challenges, delivering a strong rebound in the second half," said Janis Risbin, CFO. "Additionally, refinancing our debt at industry-leading rates reinforces our financial strength as we continue to focus on sustainable, long-term growth."

2024 Highlights:For the twelve months ended December 31, 2024

Net revenue of $48.7 million (21% increase from 2023) for the year ended December 31, 2024

Gross profit before fair value adjustments of $15.3 million (9% increase from 2023) for the year ended December 31, 2024

Achieved Adjusted EBITDA1 gain of $4.0 million for the year ended December 31, 2024 (including $0.9 million of one-time ERP costs)

Cash provided by operating activities of $3.4 million for the year ended December 31, 2024

Free Cash Flows2 of $1.9 million for the year ended December 31, 2024

Industry recognition winning 11 prestigious awards4 including Budtender Choice and 1964 Supply Co. Brand of the Year

WildflowerTM is the #15 topical brand in Canada with market share of 27.1%5 for the year ended December 31, 2024

2.0%6 national market share of flower and pre-rolls for the year ended December 31, 2024

26.5%7 national market share of premium edibles for year ended December 31, 2024

Launch of full spectrum extract vapes in Alberta, BC, and Ontario with five SKUs in market, growing our share of the resin vapes category to 13.4%8 national market share and 56% distribution within the first 6 months since launch

Secured $10 million credit facilities at interest rate of 6.75% for 5 years over 10-year amortization period

2024 Results of Operations:

 

Year ended

 

December 31, 2024$

December 31, 2023$

Net revenue

48,695,831

 

40,116,476

 

Production costs

11,588,995

 

10,802,416

 

Inventory expensed to cost of sales

20,737,069

 

14,432,764

 

Inventory written off or provided for

1,066,315

 

794,117

 

Gross profit before fair value adjustments

15,303,452

 

14,087,179

 

Fair value adjustments to cannabis plants, inventory sold, and other charges

116,989

 

(946,409)

 

Gross profit

15,420,441

 

13,140,770

 

As At:

December 31,2024$

December 31,2023$

Cash and cash equivalents

9,857,264

 

9,784,190

 

Working capital

19,945,252

 

10,132,089

 

 

 

 

 

 

Subsequent Sales & Operational Highlights:

The Company entered into a purchase and sale agreement of a purpose-built indoor cultivation facility in Hope, British Columbia, spanning 47,500 square feet. The Company plans to use the Hope Facility to expand its production capacity. The transaction is expected to close in the second quarter of 2025.

The Company's Delta Facility received its CUMCS Equivalency IMC-G.A.P. certification and executed its first international shipment.

1964 Supply Co™ launched two more FSE resin vapes with LA Kush and Stinky Pinky, bringing the total amount of vapes available to 7.

2025 Outlook

Securing Additional Premium Quality Supply

With growing demand for Canadian cannabis from the domestic and international markets, we see that controlling access to premium quality supply is critical to continue to grow our brands and gross revenue. Our Delta Facility is fully operational and has annual production capacity of 11,000 kg. We are continuously evaluating ways to improve both our yield and quality at the Delta Facility and are in the trial stage of evaluating additional lighting ...

https://www.benzinga.com/pressreleases/25/04/g44599593/rubicon-organics-reports-2024-financial-results