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