VANCOUVER, British Columbia, Aug. 01, 2024 (GLOBE NEWSWIRE) -- LEEF Brands, Inc. ("LEEF" or the "Company") (CSE: LEEF, OTC: LEEEF), a premier vertical cannabis operator, today announced its financial results for the three and six months ended June 30, 2024. Unless otherwise noted, all currency references are in United States dollars.
Financial Highlights:
- Net sales of $7.9M for the three months ended June 30, 2024 and $15.8M for the six months ended June 30, 2024.
- Gross Profit of $2.7M for the three months ended June 30, 2024 and $5.9M for the six months ended June 30, 2024.
- Gross Margin of 34.0% for the three months ended June 30, 2024 and 37.3% for the six months ended June 30, 2024.
- Adjusted EBITDA of $437K for the three months ended June 30, 2024 and $2.2M for the six months ended June 30, 2024.
Management Commentary:
“We are pleased with our financial performance this quarter, achieving sales of $7.9 million for the quarter and $15.8 million year to date” stated Micah Anderson, Chief Executive Officer. “I am super proud of the teams hard work so far this year. We have continued to gain market share in California and this is shown by the fact LEEF has increased YOY unit sales by 81%. We have seen a decrease in the average price per gram in 2024, however we have managed to increase our margins by 3.6%. Increased unit sales and higher margins are the direct result of LEEF building stronger relationships with the top brands, retail chains, and farming partnerships throughout the state. Our goal is the be the best concentrate provider in the state and we will achieve this by continuing to focus on customer service, putting out quality product, and maintaining the relentless pursuit of getting better everyday. With the comment period now closed for the rescheduling of cannabis, we are hopeful for favorable news in the coming months, which could significantly impact our operations and the broader industry.”
“Our financial results reflect a continued focus on operational efficiency and cost control.” Stated Kevin Wilson, Chief Financial Officer. “We are proud to report that the company was cash flow positive from operations for the third consecutive quarter. Additionally, Adjusted EBITDA, which includes only the addition of stock compensation expense and the gain on the extinguishment of debt, remains positive, highlighting the profitability of our core business operations. Despite the ongoing challenges in the California cannabis market, we are confident in our strategic approach and committed to sustaining our financial momentum.”
Q2 2024 Financial Results Discussion:
Investors are invited to access the financial results and analyses on the Company's investor relations website (https://www.leefbrands.com/investors) and SEDAR+ (www.sedarplus.ca).
Unaudited Q2 2024 Financial and Operation Metrics:
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Net Loss (IFRS) | $ | (3,939,204 | ) | $ | (20,314,944 | ) | $ | (5,404,209 | ) | $ | (21,778,310 | ) | |||
| Depreciation and amortization | 427,494 | 491,077 | 872,403 | 932,904 | |||||||||||
| Interest expense | 1,658,395 | 1,036,882 | 2,953,199 | 1,930,972 | |||||||||||
| Income tax expense | 802,664 | 868,531 | 1,761,309 | 1,785,361 | |||||||||||
| EBITDA (non-IFRS) | (1,050,650 | ) | (17,918,454 | ) | 182,702 | (17,129,073 | ) | ||||||||
| Adjustments: | |||||||||||||||
| Share-based compensation | 1,772,448 | 422,644 | 2,310,180 | 983,142 | |||||||||||
| Change in fair value of contingent consideration | - | 21,129 | - | (136,000 | ) | ||||||||||
| Gain on extinguishment of debt | (284,660 | ) | - | (284,660 | ) | - | |||||||||
| Loss on impairment | - | 17,408,478 | - | 17,408,478 | |||||||||||
| Change in fair value of derivative liabilities | - | (12,727 | ) | - | (1,066,898 | ) | |||||||||
| Non recurring operating costs | - | 372,198 | - | 959,281 | |||||||||||
| Adjusted EBITDA (non-IFRS) | $ | 437,138 | $ | 293,268 | $ | 2,208,222 | $ | 1,018,930 | |||||||
About LEEF Brands Inc.
LEEF Brands Inc. is a leading California-based extraction and manufacturing cannabis company, recognized for its large-scale vertical integration and as one of the state's most sophisticated operators. With a comprehensive supply chain, cutting-edge manufacturing processes, and a dynamic bulk concentrate portfolio, LEEF powers some of the largest brands in California. For more information, visit www.LeefBrands.com.
LEEF Brands Inc.
Per: “Kevin Wilson”
Chief Financial Officer
SOURCE: LEEF Brands, Inc.
For further information:
LEEF Brands, Inc., Micah Anderson, CEO, or Kevin Wilson, CFO, 707-703-4111, ir@leefca.com
Forward-Looking Statements
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements") including but not limited to: (i) the continued success of the Company's corporate strategy and proposed initiatives; (ii) the closing of the Company's financing related to the sale of its 60% interest in its cultivation and real estate assets in Santa Barbara, California; (iii) the proposed used of proceeds from the completion of the proposed financing; (iv) the Company's ability to enhance efficiencies across the entire manufacturing process, foster stronger relationships with its client-base and produce a predictable and consistent supply of input material; and (v) its ability to continue to generate positive cashflow from operations. Forward-looking statements reflect current expectations or beliefs regarding future events or the Company's future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. All forward-looking statements, including those herein are qualified by this cautionary statement.
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including financial and operational results not proving to be as expected or on the timelines expected; the Company not completing certain proposed acquisition or financing transactions at all, or on the timelines expected; the Company not achieving the synergies expected; and other risks disclosed in the Company's Annual Information Form and other public filings on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements.
For more information on the Company, investors are encouraged to review the Company's public filings on SEDAR+ at www.sedarplus.ca. The forward-looking statements and financial outlooks contained in this news release speak only as of the date of this news release or as of the date or dates specified in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
