Net revenue of $40.1 million for the twelve months ended December 31, 2023
Adjusted EBITDA1 of $4.4 million for the twelve months ended December 31, 2023
Achieved operating cash flow of $5.0 million for the twelve months ended December 31, 2023
Achieved Free Cash Flow2 of $2.5 million for the year ended December 31, 2023
6.9%3 national market share of premium flower and pre-rolls for the twelve months ended December 31, 2023
Wildflower™ is the number one topical brand in Canada with market share of 21.8%4 for the twelve months ended December 31, 2023
15.2%5 national market share of premium concentrates for the twelve months ended December 31, 2023
14.0%6 national market share of premium edibles for the three months ended December 31, 2023
Simply Bare™ Organic and 1964 Supply Co™ identified as 2 of top 3 brands recommended by Canadian budtenders7
Rubicon Organics won “Cannabis Company of the Year” and “People’s Choice for Best Weed” awards8
5 new independent directors appointed to the Board
VANCOUVER, British Columbia, March 27, 2024 (GLOBE NEWSWIRE) — Rubicon Organics Inc. (TSXV:ROMJ) (OTCQX:ROMJF) (“Rubicon Organics”, “Rubicon”, or the “Company”), a licensed producer focused on cultivating and selling organic certified, premium cannabis, today reported its financial results for the year ended December 31, 2023 (“Q4 2023”). All amounts are expressed in Canadian dollars.
“2023 served as a cornerstone year for Rubicon. We’ve solidified our presence with established brands fueled by our renowned reputation for quality flower, now expanding into diverse product formats exemplified by our success of launching edibles under 1964 Supply Co.™ and Wildflower™. Looking forward to 2024, we’re thrilled to unveil several exciting initiatives, including the highly anticipated launch of full spectrum extract (“FSE”) resin vapes under 1964 Supply Co.™ which I view as our next significant growth opportunity” said Margaret Brodie, CEO.
Janis Risbin, CFO, said “I am pleased to announce that Rubicon has attained its seventh consecutive quarter of positive Adjusted EBITDA and sixth consecutive quarter of positive operating cashflow. Despite the challenges faced in the latter half of 2023 due to competitive pricing pressures in the Canadian cannabis sector and broader negative macroeconomic factors affecting Canadian consumers, we are optimistic about the prospects in 2024. With Rubicon’s prominent position as a leading force in the premium cannabis market, I am enthusiastic about the opportunities that lie ahead.”
________________________
1 Adjusted EBITDA is a non-GAAP measure that is calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. See Non-GAAP Financial Measures for details on the Adjusted EBITDA calculation.
2 Free Cash Flow is a non-GAAP measure that is calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. See Non-GAAP Financial Measures for details on the Free Cash Flow calculation.
3 Hifyre data for premium flower & pre-rolled products covering twelve months ending December 31, 2023
4 Hifyre data for topical products covering twelve months ending December 31, 2023
5 Hifyre data for premium concentrate products covering twelve months ending December 31, 2023
6 Hifyre data for premium edible products covering three months ending December 31, 2023
7 Brightfield Group Canada Budtender Study 2023
8 2023 KIND Magazine’s (“KIND”) awards
2023 Highlights:
For the twelve months ended December 31, 2023
Net revenue of $40.1 million (13% increase from 2022)
Gross profit before fair value adjustments of $14.1 million (15% increase from 2022)
Achieved Adjusted EBITDA1 profitability of $4.4 million with Q4 2023 marking the seventh consecutive quarter of Adjusted EBITDA1 profitability
Growth in cash balance by $1.5 million from December 31, 2022 from $8.3 million to $9.8 million while reducing accounts payable and accrued liabilities by $1m
Achieved $5.0 million operating cashflow. Q4 2023 marking the sixth consecutive quarter of operating cashflow positive
Simply Bare™ Organic and 1964 Supply Co.™ identified as 2 of top 3 brands recommended by Canadian budtenders7.
1964 Supply Co.™ voted #1 brand sampled at KIND Summer Fair.
Rubicon Organics won “Cannabis Company of the Year” and “People’s Choice for Best Weed” awards8
2.1%9 national market share of flower and pre-rolls
6.9%3 national market share of premium flower and pre-rolls
21.8%4 national market share of topical products
15.2%10 national market share of premium concentrates
4.3%11 national market share of premium edibles following initial launch of 1964 Supply Co™ edibles in Q2 2023 and Wildflower™ launch in Q4 2023.
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9 Hifyre data for flower & pre-rolled products covering twelve months ending December 31, 2023
10 Hifyre data for premium concentrates products covering twelve months ending December 31, 2023
11 Hifyre data for premium edible products covering twelve months ending December 31, 2023
2023 Results of Operations:
Three months ended
Year ended
December 31,
2023
$
December 31,
2022
$
December 31,
2023
$
December 31,
2022
$
Net revenue
9,992,997
10,991,985
40,116,476
35,518,133
Production costs
2,734,441
2,559,782
10,802,416
10,484,602
Inventory expensed to cost of sales
3,774,785
3,682,364
14,432,764
11,957,149
Inventory written off or provided for
268,716
241,103
794,117
865,868
Gross profit before fair value adjustments
3,215,055
4,508,736
14,087,179
12,210,514
Fair value adjustments to cannabis plants, inventory sold, and other charges
829,800
(2,379,925
)
(946,409
)
1,595,830
Gross profit
4,044,855
2,128,811
13,140,770
13,806,344
As At:
December 31,
2023
$
December 31,
2022
$
Cash and cash equivalents
9,784,190