Avant Brands Announces Results for Q2 2025
Avant Brands (OTCQX:AVTBF) released its Q2 2025 financial results, marking its sixth consecutive quarter of positive Adjusted EBITDA at $1.2 million. The company reported gross revenue of $9.7 million (+3% YoY) and net revenue of $8.5 million (+3% YoY).
Export wholesale revenue grew 11% to $4.1 million, driven by strong international demand in Germany, Israel, and Australia. Domestic wholesale revenue increased 37% to $1.3 million, while recreational revenue declined 14% to $2.9 million due to strategic SKU optimization. The company's cannabis production reached 3,327 KG (+4%), with sales volume of 2,799 KG (+3%).
However, gross margin adjusted for fair value adjustments decreased to 26% from 37% in Q2 2024, while YTD net cash flows from operations improved by 7% to $2.6 million.
Avant Brands (OTCQX:AVTBF) ha pubblicato i risultati finanziari del secondo trimestre 2025, segnando il suo sesto trimestre consecutivo di EBITDA rettificato positivo pari a 1,2 milioni di dollari. L'azienda ha riportato un ricavo lordo di 9,7 milioni di dollari (+3% su base annua) e un ricavo netto di 8,5 milioni di dollari (+3% su base annua).
I ricavi all'ingrosso per l'export sono cresciuti dell'11% raggiungendo 4,1 milioni di dollari, trainati da una forte domanda internazionale in Germania, Israele e Australia. I ricavi all'ingrosso domestici sono aumentati del 37% a 1,3 milioni di dollari, mentre i ricavi ricreativi sono diminuiti del 14% a 2,9 milioni di dollari a causa di un'ottimizzazione strategica delle SKU. La produzione di cannabis dell'azienda ha raggiunto 3.327 KG (+4%), con un volume di vendite di 2.799 KG (+3%).
Tuttavia, il margine lordo rettificato per le variazioni di fair value è sceso al 26% rispetto al 37% del secondo trimestre 2024, mentre i flussi di cassa netti da operazioni da inizio anno sono migliorati del 7% raggiungendo 2,6 milioni di dollari.
Avant Brands (OTCQX:AVTBF) publicó sus resultados financieros del segundo trimestre de 2025, marcando su sexto trimestre consecutivo con EBITDA ajustado positivo de 1,2 millones de dólares. La compañía reportó un ingreso bruto de 9,7 millones de dólares (+3% interanual) y un ingreso neto de 8,5 millones de dólares (+3% interanual).
Los ingresos mayoristas de exportación crecieron un 11% hasta 4,1 millones de dólares, impulsados por una fuerte demanda internacional en Alemania, Israel y Australia. Los ingresos mayoristas domésticos aumentaron un 37% hasta 1,3 millones de dólares, mientras que los ingresos recreativos disminuyeron un 14% a 2,9 millones de dólares debido a una optimización estratégica de SKUs. La producción de cannabis de la compañía alcanzó 3.327 KG (+4%), con un volumen de ventas de 2.799 KG (+3%).
Sin embargo, el margen bruto ajustado por ajustes de valor razonable disminuyó al 26% desde el 37% en el segundo trimestre de 2024, mientras que los flujos netos de efectivo operativos acumulados mejoraron un 7%, llegando a 2,6 millones de dólares.
Avant Brands (OTCQX:AVTBF)는 2025년 2분기 재무 결과를 발표하며 6분기 연속 조정 EBITDA 흑자를 120만 달러 기록했습니다. 회사는 총 매출 970만 달러(전년 동기 대비 3% 증가)와 순매출 850만 달러(전년 동기 대비 3% 증가)를 보고했습니다.
수출 도매 매출은 독일, 이스라엘, 호주에서의 강한 국제 수요에 힘입어 11% 증가한 410만 달러를 기록했습니다. 국내 도매 매출은 37% 증가한 130만 달러였으며, 전략적 SKU 최적화로 인해 레크리에이션 매출은 14% 감소한 290만 달러를 기록했습니다. 회사의 대마초 생산량은 3,327 KG(4% 증가)였고, 판매량은 2,799 KG(3% 증가)였습니다.
하지만 공정가치 조정을 반영한 조정 총이익률은 2024년 2분기 37%에서 26%로 감소했으며, 연초부터 현재까지 영업활동으로 인한 순현금흐름은 7% 증가한 260만 달러를 기록했습니다.
Avant Brands (OTCQX:AVTBF) a publié ses résultats financiers du deuxième trimestre 2025, marquant son sixième trimestre consécutif d'EBITDA ajusté positif à 1,2 million de dollars. La société a déclaré un chiffre d'affaires brut de 9,7 millions de dollars (+3 % en glissement annuel) et un chiffre d'affaires net de 8,5 millions de dollars (+3 % en glissement annuel).
Les revenus de gros à l'exportation ont augmenté de 11 % pour atteindre 4,1 millions de dollars, soutenus par une forte demande internationale en Allemagne, en Israël et en Australie. Les revenus de gros nationaux ont augmenté de 37 % pour atteindre 1,3 million de dollars, tandis que les revenus récréatifs ont diminué de 14 % à 2,9 millions de dollars en raison d'une optimisation stratégique des SKU. La production de cannabis de la société a atteint 3 327 KG (+4 %), avec un volume de ventes de 2 799 KG (+3 %).
Cependant, la marge brute ajustée pour les ajustements de la juste valeur a diminué à 26 % contre 37 % au deuxième trimestre 2024, tandis que les flux de trésorerie nets d'exploitation cumulés ont progressé de 7 % pour atteindre 2,6 millions de dollars.
Avant Brands (OTCQX:AVTBF) veröffentlichte seine Finanzergebnisse für das zweite Quartal 2025 und verzeichnete damit sein sechstes Quartal in Folge mit positivem bereinigtem EBITDA von 1,2 Millionen US-Dollar. Das Unternehmen meldete einen Bruttoumsatz von 9,7 Millionen US-Dollar (+3 % im Jahresvergleich) und einen Nettoerlös von 8,5 Millionen US-Dollar (+3 % im Jahresvergleich).
Der Export-Großhandelsumsatz stieg um 11 % auf 4,1 Millionen US-Dollar, angetrieben durch eine starke internationale Nachfrage in Deutschland, Israel und Australien. Der inländische Großhandelsumsatz erhöhte sich um 37 % auf 1,3 Millionen US-Dollar, während der Freizeitumsatz aufgrund einer strategischen SKU-Optimierung um 14 % auf 2,9 Millionen US-Dollar zurückging. Die Cannabisproduktion des Unternehmens erreichte 3.327 KG (+4 %), mit einem Verkaufsvolumen von 2.799 KG (+3 %).
Der bereinigte Bruttogewinnmarge, angepasst um Fair-Value-Anpassungen, sank jedoch von 37 % im zweiten Quartal 2024 auf 26 %, während die kumulierten Netto-Cashflows aus dem operativen Geschäft um 7 % auf 2,6 Millionen US-Dollar anstiegen.
- Six consecutive quarters of positive Adjusted EBITDA, maintaining at $1.2 million
- Export wholesale revenue increased 11% to $4.1 million, showing strong international market penetration
- Domestic wholesale revenue grew 37% to $1.3 million
- Net cash flows from operations increased 7% YTD to $2.6 million
- Cannabis production and sales volumes increased by 4% and 3% respectively
- Gross margin adjusted for fair value adjustments declined significantly from 37% to 26%
- Recreational revenue decreased 14% to $2.9 million
- Modest overall revenue growth of only 3% in both gross and net revenue
KELOWNA, BC / ACCESS Newswire / July 15, 2025 / Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BUP) ("Avant" or the "Company"), a leading producer of innovative and award-winning cannabis products, today released its financial results for the second quarter ended May 31, 2025 ("Q2 2025"). With a growing international footprint and deep penetration into key global medical markets, Avant continues to scale as the go-to Canadian exporter for top-shelf cannabis at commercial volume. The Company delivered its sixth consecutive quarter of positive Adjusted EBITDA1, supported by growth in Export Wholesale Revenue2 and disciplined operational execution.
(1) Adjusted EBITDA is a non-GAAP performance measure. The information is incorporated by reference from the Q2 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
(2) Export Wholesale Revenue is a non-GAAP performance measure. The information is incorporated by reference from the Q2 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
Highlights include:
Gross and Net Revenue Increases: Gross Revenue increased
3% to$9.7 million , while Net Revenue increased3% to$8.5 million as compared to Q2 2024, driven by sustained international demand for premium cannabis and strong relationships with customers.Export Wholesale Revenue2: Export Wholesale Revenue2 reached
$4.1 million , representing an11% increase over Q2 2024, reflecting Avant's expanding presence in key international medical markets such as Germany, Israel, and Australia.(2) Export Wholesale Revenue is a non-GAAP performance measure. The information is incorporated by reference from the Q2 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
Domestic Wholesale Revenue3: Domestic Wholesale Revenue3 reached
$1.3 million , representing a31% increase over Q2 2024.(3) Domestic Wholesale Revenue is a non-GAAP performance measure. The information is incorporated by reference from the Q2 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
Adjusted EBITDA1: Achieved Adjusted EBITDA1 of
$1.2 million , marking the sixth consecutive quarter of positive Adjusted EBITDA1.(1) Adjusted EBITDA is a non-GAAP performance measure. The information is incorporated by reference from the Q2 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
Net Cash Flows Generated from Operating Activities: Net cash flows generated from operating activities year to date ("YTD") increased
7% to$2.6 million as compared to Q2 2024.
Avant Brands Founder & CEO Norton Singhavon Comments:
"Avant is executing at a global scale. We are establishing ourselves as the leading Canadian exporter of high-grade cannabis, trusted by top-tier distributors in markets like Germany, Israel, and Australia. Our ability to deliver consistent, premium-quality product at scale is what sets us apart. As international demand accelerates, our focus remains on building globally recognized brands and solidifying Avant's position as the standard for Canadian cannabis on the world stage."
Fiscal Q2 2025 Financial Highlights (vs. Fiscal Q2 2024):
Revenue:
Gross Revenue:
$9.7 million (+3% )Net Revenue:
$8.5 million (+3% )Export Wholesale Revenue2:
$4.1 million (+11% )Recreational Revenue4:
$2.9 million (-14% )Domestic Wholesale Revenue3:
$1.3 million (+37% )(2) Export Wholesale Revenue is a non-GAAP performance measure. The information is incorporated by reference from the Q2 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
(3) Domestic Wholesale Revenue is a non-GAAP performance measure. The information is incorporated by reference from the Q2 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
(4) Recreational Revenue is a non-GAAP performance measure. The information is incorporated by reference from the Q2 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
Recreational Revenue4 declined because of a strategic shift toward higher-margin, top-performing SKUs. This realignment is expected to drive long-term profitability, while resources continue to be prioritized toward scaling international operations.
(4) Recreational Revenue is a non-GAAP performance measure. The information is incorporated by reference from the Q2 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
Gross Margin adjusted for fair value adjustments5:
Gross Margin adjusted for fair value adjustments5: Decreased to
$2.2 million (-27% ) due to improved Cost of Sales allocations.Gross Margin % adjusted for fair value adjustments6: Decreased to
26% (vs.37% ).YTD Net Cash Flows Generated from Operating activities increased
7% versus the comparative period, inclusive of the improved allocations to Cost of Sales.(5) Gross Margin adjusted for fair value adjustments is a non-GAAP performance measure. The information is incorporated by reference from the Q2 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
(6) Gross Margin % adjusted for fair value adjustments is a non-GAAP performance ratio. The information is incorporated by reference from the Q2 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
Adjusted EBITDA1
Achieved Adjusted EBITDA1 of
$1.2 million , marking the sixth consecutive quarter of positive Adjusted EBITDA1.(1) Adjusted EBITDA is a non-GAAP performance measure. The information is incorporated by reference from the Q2 2025 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
Cannabis Production and Sales:
Cannabis Production: 3,327 KG (+
4% ).Cannabis Sales: 2,799 KG sold (+
3% ).
About Avant Brands Inc.
Avant Brands Inc. (TSX: AVNT) (OTCQX: AVTBF) (FRA: 1BUP) is a leading innovator in premium cannabis products, driven by a commitment to exceptional quality and craftsmanship. As one of Canada's largest indoor producers, the company operates multiple production facilities across the country, cultivating unique and high-quality cannabis strains.
Avant offers a diverse product portfolio catering to recreational, medical, and export markets. Its renowned consumer brands, including blk mkt™, Tenzo™, Cognōscente™, flowr™, and Treehugger™, are available in key recreational markets across Canada. The company's international footprint spans Australia, Israel, and Germany, with its flagship brand blk mkt™ leading the way. Avant also serves qualified medical patients nationwide through its GreenTec™ medical cannabis brand, accessible via the GreenTec Medical portal and trusted partner network.
Avant is a publicly traded company, listed on the Toronto Stock Exchange (TSX) and accessible to international investors through the OTCQX Best Market (OTCQX) and Frankfurt Stock Exchange (FRA). Headquartered in Kelowna, British Columbia, the company operates in strategic locations throughout Canada.
Learn More:
For more information about Avant, including investor presentations and details about its consumer brands, please visit the company website: www.avantbrands.ca
Investor Relations:
For inquiries, please contact Avant Brands Investor Relations at 1-800-351-6358 or ir@avantbrands.ca.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain "forward-looking information" as defined under applicable Canadian securities legislation, encompassing statements regarding Avant Brands Inc.'s ("Avant" or the "Company") plans, intentions, beliefs, and current expectations concerning future business activities and operating performance.
Forward-looking information is often, but not always, identified by the use of words such as "expects," "intends," "anticipates," "believes," "estimates," "plans," "may," "could," "should," "will," or variations of such words and phrases. In particular, this news release includes forward-looking information related to, but not limited to, the Company's expectations for future revenue and sales growth, the continued performance of its international operations, the demand for its premium cannabis products-including the blk mkt™ brand-in key global markets, and the Company's strategic initiatives to prioritize high-performing SKUs, streamline its domestic offerings, and expand its presence in Australia, Germany, Israel, and other international jurisdictions.
Forward-looking information also includes statements concerning the Company's ongoing focus on operational efficiencies, profitability, and the anticipated availability of financial statements and management's discussion and analysis ("MD&A") on the Company's SEDAR+ profile and website, providing investors with comprehensive financial information.
Investors should be aware that forward-looking information involves inherent risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied by such information. Management's current expectations may not accurately predict future events or outcomes. Therefore, investors are cautioned not to place undue reliance on forward-looking information.
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates, or projections concerning future results or events based on the opinions, assumptions, and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance, or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business, and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; and the risk factors set out in the Company's annual information form dated February 28, 2025 filed with Canadian securities regulators and available on the Company's profile on SEDAR+ at www.sedarplus.ca.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. Although the Company has attempted to identify important risks, uncertainties, and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated, or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by law.
SPECIAL NOTE REGARDING FINANCIAL INFORMATION
This document should be read in conjunction with the Company's unaudited interim consolidated financial statements (the "financial statements") and the Company's MD&A for the three months and six months ended May 31, 2025, and audited consolidated financial statements for the year ended November 30, 2024. All dollar amounts are referenced in millions of Canadian dollars, except where noted otherwise. The Company's financial statements and MD&A for the three months and six months ended May 31, 2025 have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").
Additional information relating to the Company, including its Annual Information Form for the year ended November 30, 2024, is available on SEDAR+ at www.sedarplus.ca. Information on the Company's website does not form part of and is not incorporated by reference in the Company's MD&A.
SPECIAL NOTE REGARDING NON-GAAP AND OTHER FINANCIAL MEASURES
This document includes references to non-GAAP measures, which include non-GAAP and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure. These financial measures are used by the Company to evaluate its financial performance, financial position or cash flow and include non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary financial measures. These financial measures are not defined by IFRS and therefore are referred to as non-GAAP and other financial measures. The non-GAAP and other financial measures used by the Company may not be comparable to similar measures presented by other companies, and should not be considered an alternative to or more meaningful than the most directly comparable financial measure presented in the Company's financial statements, as applicable, as an indication of the Company's performance. Descriptions of the Company's non-GAAP and other financial measures included in this document, and reconciliations to the most directly comparable GAAP measure, as applicable, are provided in the "Cautionary Statement Regarding Certain Non-Gaap Performance Measures" section of the Company's MD&A for the three months and six months ended May 31, 2025, dated July 15th, 2025.
SOURCE: Avant Brands Inc.
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