Nextleaf Q1 sales climb to $4.1M, fueled by entrance into Alberta
Canadian cannabis processing company Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) reported a climb in revenue for the first quarter ending Dec. 31, 2023, driven by the company’s expansion into Alberta.
The company achieved a record $4.1 million in gross sales for the quarter, a 190% year-over-year increase and a 25.1% rise from the previous quarter.
Net revenue came out to $132,821 during the quarter versus a $559,013 net loss in the same period in 2022, according to regulatory filings. That’s still down sequentially from $387,640 in the previous quarter.
The rise in revenue is linked to the company’s expansion into Alberta and a broadened product range.
“I have a personal affinity towards Alberta and its success for us as a company, having spent over 20 years there,” interim CEO Emma Andrews said in a statement.
“This was my first full quarter as interim CEO, so I spent time visiting retailers in Alberta to support our company’s launch. It was gratifying to see first-hand how the products are gaining immediate traction and how the value proposition is resonating early on with retailers, particularly with our softgel SKUs.”
Nextleaf also outlined its plans for the upcoming quarter, including the launch of nine new products across Canada.
“The company substantially increased its distribution province-wide and achieved successful sell-through of all initial purchase orders, receiving reorders on all items within the quarter,” the firm said.
Overall, Nextleaf maintained its debt-free status while investing in inventory and manufacturing to support its sales expansion and commercialization initiatives.
That includes “equipment purchases to support manufacturing. The company also engaged new contract manufacturing partners to increase capacity and meet growing demand.”
Additionally, the company reported on recent equity and stock option activities, including the issuance of common shares to company executives and modifications to its stock option plan.
