Fiscal 2025 was a year of transition for the Company, driven primarily by a province-wide restructuring of the cannabis product assortment and distribution planogram in Quebec. While these changes reduced the number of Mercanto products available on shelves, the Company believes the new structure provides a more stable and predictable operating environment going forward.
Fiscal 2025 Financial Results
(All financial information is in Canadian dollars and extracted from the Company's audited consolidated financial statements and MD&A for the year ended July 31, 2025.)
Revenue: $3,561,289 (2024: $4,636,034)
Net Revenue: $2,995,995 (2024: $3,893,410)
Gross Margin: $621,689 (2024: $1,225,022)
Net Income (Loss): $(412,313) (2024: $40,603)
The decline in revenue and margin was largely attributable to the completion of the rationalization process in Quebec, the Company's primary market.
Impact of Quebec Market Restructuring
During fiscal 2025, the Quebec cannabis retailer completed a comprehensive review and reduction of its entire product portfolio. As part of this process:
Certain Mercanto SKUs were delisted;
The "nursery program"—under which emerging products were tested in a portion of stores before province-wide rollout—was discontinued.
Although these measures had a negative short-term impact on the Company's results, Mercanto ...
