Rubicon Organics (ROMJ) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 net revenue of CAD 13.5 million, up 34% year-over-year, and nine-month net revenue of CAD 34.5 million.

• Delivered highest adjusted positive EBITDA for the quarter and second consecutive quarter of profit from operations.

• Net loss for Q3 2024 was CAD 308,600, compared to CAD 2.5 million in Q3 2023; nine-month net loss was CAD 2.5 million.

• Maintained leading premium market share in Canada across flower, pre-rolls, edibles, and topicals.

• Successfully launched vapes, now the fastest and widest product launch in company history, with 55% national distribution in six months.

Financial highlights

• Q3 2024 net revenue: CAD 13.5 million; nine-month net revenue: CAD 34.5 million.

• Q3 gross profit: CAD 4.4 million; gross margin: 32%, up from 25% in Q1 and 30% in Q2.

• Product sales for Q3 2024 were CAD 17.8 million; excise taxes increased to CAD 4.3 million.

• Operating cash flow: CAD 900,000 in Q3, year-to-date CAD 1.1 million.

• Operating expenses for Q3 2024 totaled CAD 3.9 million, up from CAD 1.9 million in Q3 2023.

Outlook and guidance

• Expecting continued net revenue growth and increased Adjusted EBITDA for 2024, excluding ERP investment.

• Anticipates vapes to contribute over 20% growth on 2023 net revenue by 2025.

• Plans to secure an additional 20% flower capacity in 2025 through new supply relationships.

• Preparing for international market entry in 2025, targeting premium flower demand.

• Management is in discussions with lenders to extend or refinance existing debt agreements.