Q3 2023 Earnings Season: Record Revenue, Robust Performance, Consistent Results From Three Cannabis Companies

Author: Joana Scopel | November 09, 2023 10:47pm

Nova Cannabis Inc. Reports Record Q3 2023 Revenue, Achieving Gross Margin Growth

Nova Cannabis Inc. (TSX:NOVC) (OTCQB:NVACF) released its unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2023. 

Q3 Financial Highlights

• Total Revenue: Nova Cannabis reported record revenue of CA$67.7 million ($52.6 million) for the third quarter of 2023, marking a 15.0% increase from the same period in 2022 and a 5.8% increase from the second quarter of 2023.
• Gross Margin: Nova achieved a record gross margin of CA$17.0 million (13.2 million) in the third quarter of 2023, representing 25.1% of revenue. This was a significant 52.8% increase from the third quarter of 2022 (18.9% of revenue) and a 16% increase from the previous quarter (22.8% of revenue). 
• Net Earnings: Nova reported net earnings of CA$2.1 million (1.63 million) (CA$0.04 per share) in the third quarter of 2023, compared to a net loss of CA$1.5 million (CA$0.03 loss per share) in the third quarter of 2022. This represents a substantial increase in net earnings by CA$1.1 million or 102.4% from the second quarter of 2023.
• Adjusted EBITDA: The company reported Adjusted EBITDA for the third quarter of 2023 at CA$6.8 million ($5.29 million) (10.0% of revenue), compared to CA$2.5 million (4.3% of revenue) for the third quarter of 2022 and CA$5.5 million (8.6% of revenue) for the second quarter of 2023. 

"We are confident that our long-term strategic plan to expand our footprint nationwide will offer (...) new opportunities and further solidify our leadership position in the Canadian cannabis retail market," said Marcie Kiziak, CEO of Nova.

Price Action: NVACF shares were trading up 12.65% at $0.5929 per share on Thursday afternoon

Indivior PLC Reports Strong Financial Performance In YTD And Q3 2023, Led By Sublocade Growth

Indivior PLC (NASDAQ:INDV) announced its financial results for the period ending September 30, 2023.

Year to Date/Q3 Financial Highlights

• Total Net Revenue: YTD 2023: $800 million (21% increase compared to YTD 2022). Q3 2023: $271 million (17% increase compared to Q3 2022).
• Operating Performance: YTD 2023 reported an operating loss of $65 million (YTD 2022: $173 million profit). Q3 2023: Operating loss of $183 million (Q3 2022: $56 million profit).
• Net Earnings: Q3 2023: Net loss of $135 million (Q3 2022: $41 million profit). Earnings Per Share: Q3 2023: Diluted (Loss)/Earnings Per Share: $(0.98) on a reported basis, $0.34 on an adjusted basis (Q3 2022: $0.28 on a reported basis, $0.29 on an adjusted basis).
• Product Highlights: Q3 2023 Sublocade (buprenorphine extended-release) Net Revenue of $167 million, an increase of 55% compared to Q3 2022. Full-year 2023 Sublocade net revenue is now expected to be between $610 million and $630 million, up from the previous range of $590 million to $630 million.

"We delivered double-digit top-line performance led by strong growth of SUBLOCADE, which continues to shift the paradigm for the treatment of opioid use disorder (OUD). Additionally, we made good progress against our strategic priorities, with the launch of OPVEE (nalmefene) nasal spray," said Mark Crossley, CEO of Indivior PLC.

Price Action: INDV shares were trading down at 8.84% at $17.59 per share on Thursday afternoon.

NewLake Capital Partners Reports Q3 2023 Financial Results 'In Line With Expectations'

NewLake Capital Partners, Inc. (OCTQX: NLCP), a leading provider of real estate capital to state-licensed cannabis operators, released its financial results for the third quarter ending September 30, 2023.

Q3 2023 Financial Highlights

• Revenue in the third quarter of 2023 was $11.5 million, a 4.9% decrease compared to $12.1 million in Q3 2022.
• Net income attributable to common stockholders for Q3 2023 was $6.0 million, as compared to $6.5 million in Q3 2022.
• Funds from Operations (FFO) in Q3 2023 totaled $9.6 million, down from $10.3 million in Q3 2022, a decrease of 6.0%.
• Adjusted Funds from Operations (AFFO) for Q3 2023 amounted to $10.1 million, compared to $10.6 million in Q3 2022, reflecting a 5.1% decrease.

“Our financial results quarter-over-quarter were consistent and in line with our expectations," said Anthony Coniglio, president and CEO of NewLake Capital Partners. " Through the first nine months of 2023, we have maintained our quarterly dividend of $0.39 per share and repurchased 713,831 shares in the open market.”

Price Action: NLCP shares were trading up at 1.94% at $13.15 per share on Thursday afternoon

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Posted In: INDV NVACF TSX:NOVC