• Mon. Jan 30th, 2023

Decibel Cannabis Reports Record Level Of Positive Net Income For Q3 – Decibel Cannabis Co (OTC:DBCCF)

ByJoana Scopel

Nov 15, 2022
Decibel Cannabis Reports Record Level Of Positive Net Income For Q3 - Decibel Cannabis Co (OTC:DBCCF)

Decibel Cannabis Company Inc. DB DBCCF, a premium cannabis producer, announced its third-quarter financial results on Tuesday for the three and nine-month periods ending September 30, 2022.

“Our third quarter results coupled with another record market share month to start the fourth quarter continue to demonstrate our focus on achieving our 2022 operational outlook”, said Paul Wilson, CEO of Decibel.

Financial Highlights

  • Record National Market Share: Achieved 5.3% in October 2022 which places Decibel as the 6th largest LP in Canada by market share.
  • Net Revenue: $18.3 million of total net sales in Q3, with a sequential decline of 1% over Q2 2022 and an increase of 37% over Q3 2021.
  • Record Gross Margin Before Fair Value Adjustments: Significant sequential improvement to 52% in Q3, compared to 41% in Q2 2022 and 31% in Q3 2021.

“The increase was driven by investments made during the summer, including operational efficiencies, automation equipment commissioned, and sourcing of more cost-effective components related to the manufacturing of cannabis products,” says a company press release.

  • Record Adjusted EBITDA: $4.3 million of Adjusted EBITDA in Q3, with strong growth of 32% over Q2 2022 and 139% over Q3 2021. 
  • Record Adjusted Net Income: $2.9 million of Adjusted Net Income in Q3, an improvement of $3.0 million over Q2 2022 and $4.9 million over Q3 2021. 
  • Derivative Sales: $13.7 million of net sales in Q3, with strong sequential growth of 6% over Q2 2022 and 108% over Q3 2021.
  • Flower Sales: $2.3 million of net sales in Q3, a sequential decline of 34% over Q2 2022 and 40% over Q3 2021.
  • Cash Flow & Working Capital: $3.6 million of cash flow from operations in Q3, a sequential increase of $1.8 million over Q2 2022, and an improvement of $9.5 million over Q3 2021.
  • Leverage: At the end of Q3 2022, Decibel had a funded debt to trailing twelve-month EBITDA of 3.9x.

Operating Highlights: The Company launched or expanded the distribution of the following products in the 3Q: 2 General Admission vape flavors in distillate and live resin formats, and 3 General Admission and Qwest-infused pre-rolls.

“With highly successful recent product launches, the demand we are experiencing has been tremendous and provides an opportunity for material growth for Decibel. The continued progress by our productivity initiatives alongside another period of record gross profit positions us well to deliver on this demand and drive further profitability, as we track towards a strong fourth quarter to end 2022,” Wilson said.

Hybrid Financial Engagement: The Company also retained Hybrid Financial Ltd. (“Hybrid”) to provide marketing services to the Company. “Hybrid has been engaged to heighten market and brand awareness for Decibel and to broaden the Company’s reach within the investment community,” reads the press release.

Get your daily dose of cannabis news on Benzinga Cannabis. Don’t miss out on any important developments in the industry.

Photo: Courtesy Of Alexander Schimmeck On Unsplash

Image and article originally from www.benzinga.com. Read the original article here.