AVCNF - Avicanna Reports Full Year 2023 Audited Financial Results | Benzinga
$16.8M in Revenue, representing an increase of 314% from 2022
$6.7M Consolidated gross Profit, representing an increase of 500% from 2022
TORONTO, April 02, 2024 (GLOBE NEWSWIRE) -- Avicanna Inc. ("Avicanna" or the "Company) (TSX:AVCN) (OTCQX:AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing, and commercialization of plant-derived cannabinoid-based products is pleased to announce year end 2023 results and audited financial statements.
2023 FINANCIAL HIGHLIGHTS
- Revenue growth of 314%, from $4 million in 2022 to $16.8 million in 2023, largely driven by the acquisition of Medical Cannabis by Shoppers from Shoppers Drug Mart and the launch of MyMedi.ca.
- Substantial revenue growth was achieved with a 19% increase in operational expenses.
- North American gross margins improvement of 28%, to reach 45%, when compared to 2022.
- Consolidated gross profits increased by 500%, from $1.1 million in 2022 to $6.7 million in 2023,
- Adjusted EBITDA loss of $4.2 million, a 49% improvement from a loss of $8.3 million in 2022.
- Cash used in operations of $1.38 million; an 81% reduction compared to $7.4 million in 2022.
"2023 was a tremendous year for Avicanna where we solidified of our leadership position in the Canadian medical cannabis sector through our proprietary products and the launch of MyMedi.ca. We have successfully demonstrated the scalability of our revenues and made significant improvements in our fundamentals while advancing all our business pillars. Additionally, we demonstrated consistent progress on our R&D and pharmaceutical initiatives, which as a result rewarded us with significant new opportunities including the approval of our first indication specific drug in early 2024," stated Aras Azadian, CEO at Avicanna.
Additional Highlights:
Acquisition of Medical Cannabis by Shoppers ("Business"): On July 31, 2023, Avicanna acquired specific assets of the Business from Shoppers Drug Mart, Canada's largest retail pharmacy chain, including inventory and equipment, for approximately $2.6 million and an earnout, based on net revenues, for a period of two years. First launched in Ontario in January 2019, the Business provided patients access to medical cannabis products from more than 30 cannabis brands. Over the past four years, the Business supported tens of thousands of patients and worked with patient groups to facilitate access to medical cannabis.
Over 96% of active patients from Medical Cannabis by Shoppers transitioned to MyMedi.ca. The Company developed infrastructure to offer insurance reimbursement services for patients through several private insurance providers and public institutions, including 8 provincial worker safety boards - these account for over 65% of the platform's revenue combined.
Canadian commercial advancements: The Company introduced new proprietary formulations resulting in a 51% year over year increase in the number of finished products sold during 2023. the Company closed the year with 27 commercially active SKUs in Canada, across 133 total commercial listings, an increase of 131% from the year-ended in 2022. Commercial listings were concentrated ...