Greenway Announces Second Quarter Financial Results

Rhea-AI Summary

Greenway Greenhouse Cannabis reported Q2 2024 financial results with net revenue of $1,806,957, marking a 52% increase from Q2 2023. Six-month revenue grew 78% to $4,201,116. The company's MillRite brand maintained its #2 position in pre-rolls, with a 71% increase in units sold quarter-over-quarter. Cannabis wholesale prices improved to $1.22 per gram from $0.84. Despite positive revenue growth, the company reported negative Adjusted EBITDA of $253,010. Total volume sold increased 21% to 1,484 kilograms, with an average cash cost per gram of $1.00.

Positive

• Net revenue increased 52% YoY to $1.8M in Q2 2024
• Six-month revenue grew 78% to $4.2M
• Wholesale cannabis price improved 45% to $1.22 per gram
• 71% increase in MillRite brand unit sales QoQ
• 21% increase in total volume sold to 1,484kg
• Positive operating cash flow of $743,731 vs. -$664,171 in prior year

Negative

• Adjusted EBITDA declined to -$253,010 from -$112,221 YoY
• Net loss of $1,043,624 for the quarter

KINGSVILLE, ON, Nov. 27, 2024 /PRNewswire/ - Greenway Greenhouse Cannabis Corporation (CSE: GWAY) (OTCQB: GWAYF) ("Greenway" or the "Company"), a cultivator of high-quality greenhouse cannabis for the Canadian market, today reported its interim financial statements for the quarter ended September 30, 2024.

The Company is pleased to report the following results for the quarter ended September 30, 2024:

Highlights:

• Greenway produced a net revenue of $1,806,957 in Q2 2024, compared to $1,185,611 in the same quarter in 2023, representing a 52% increase.
• For the six months ended September 30, 2024, Greenway's net revenue increased from $2,359,800 to $4,201,116, representing 78% growth compared to the same period in 2023.
• Greenway's main CPG brand MillRite maintained its position as the #2 ranked brand of pre-rolls in its size segment, including having the #2 ranked indica and #2 ranked sativa pre-roll SKUs in the segment.
• Quarter over quarter, MillRite saw a 71% increase in the total number of units sold.
• Greenway continues to see an increase in the domestic wholesale price of cannabis, realizing $1.22 per gram this quarter, an increase from $0.84 per gram over a period of 12 months.
• Net cash provided by operating activities of $743,731 compared to cash used of $664,171 in the same quarter of the previous year.
• Greenway reported a negative Adjusted EBITDA of $253,010, compared to a negative Adjusted EBITDA of $112,221 in the same quarter in the previous year.
• 1,484 kilograms or kilogram equivalents sold in the period, compared to 1,226 in the same quarter in the previous year, a 21% increase.
• An average cash cost per gram for the quarter of $1.00, comprised of all crop inputs and wages, all packaging, shipping and facility repairs and maintenance.
• A weighted average cash cost per gram of $0.93 of finished goods inventory on hand as at September 30, 2024.
• The company maintains its status of being fully up to date on all excise tax payments.

"As a team, we are elated to see that last year's revenues increase by over 50% year over year, and by over 70% so far this fiscal year. We have sold more product at a higher average price this year than last, and this performance reflects our focus and commitment to producing quality cannabis, and finding the best partners and pathways to bring it to consumers," said Jamie D'Alimonte, CEO of Greenway. "We have also seen our MillRite brand maintain itself as the #2 ranked pre-roll in its size category, while achieving the #2 Indica and Sativa pre-roll in the size category over the same time. Quarter over quarter, we have seen the total number of units sold increase by over 70%. Our plan to deliver high quality, affordable products to Ontario users is working. I look forward to introducing additional SKUs in the New Year."

A copy of the interim financial statements for the quarter ended September 30, 2024, and 2023 are prepared in accordance with International Financial Reporting Standards (IFRS) and the related Management's Discussion and Analysis are available under the Company's profile on www.sedarplus.ca. All amounts expressed in this press release refer to Canadian dollars.

Non-IFRS Measures

Management uses a non-IFRS measure to assess the Company's performance. Non-IFRS measures do not have any standardized meaning under IFRS and are not a measure of financial performance under IFRS, and therefore, may not be comparable to similar measures presented by other companies. Please refer to page 1 of the Company's Management's Discussion and Analysis for an explanation of the composition of Adjusted EBITDA, an explanation of how it provides useful information to an investor and a quantitative reconciliation to the most directly comparable financial measure under IFRS, all of which is hereby incorporated by reference in this press release.  

Reconciliations of Non-IFRS Measures

The following table reconciles the non-IFRS measure to the most comparable IFRS measure for the three months ended September 30, 2024. This measure does not have any standardized meaning under IFRS and is not a measure of financial performance under IFRS, and therefore, may not be comparable to similar measures presented by other companies.

For the three months ended September 30, 2024
Net Income (Loss) and Comprehensive Loss	(1,043,624)
Amortization – Cost of sales	413,259
Amortization – Operating expenses	104,078
Interest expense	273,277
	$
Adjusted EBITDA	(253,010)

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States unless registered under the 1933 Act and any applicable securities laws of any state of the United States or an applicable exemption from the registration requirements is available.

About Greenway

Greenway Greenhouse Cannabis Corporation is a federally licensed cultivator for the Canadian cannabis marketplace. Greenway is headquartered in Kingsville, Ontario, and leverages its agriculture and cannabis expertise in its aspiration to be a leading cannabis cultivator in Canada. More information can be found on Greenway.ca and updates can be followed on Instagram, Twitter, Facebook, and LinkedIn.

The CSE has in no way passed upon the merits of the business of the Company and has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements that constitute forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements in this news release that are not purely historical statements of fact are forward-looking statements and include statements regarding the Offering and the intended use of proceeds thereof, and the Company's beliefs, plans, expectations, future, strategy, objectives, goals and targets, the development of future operations, and orientations regarding the future as of the date of this news release. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward- looking statements are typically identified by words such as: "believes", "expects", "aim", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or betaken or achieved.

Forward-looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements, and includes those risks described in the Company's final prospectus dated September 3, 2021, a copy of which is available under the Company's profile at www.sedarplus.ca. Forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements.

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SOURCE Greenway Greenhouse Cannabis Corporation

FAQ

What was Greenway's (GWAYF) revenue growth in Q2 2024?

Greenway's net revenue grew 52% year-over-year to $1,806,957 in Q2 2024, compared to $1,185,611 in Q2 2023.

What was Greenway's (GWAYF) wholesale cannabis price per gram in Q2 2024?

Greenway realized a wholesale price of $1.22 per gram in Q2 2024, up from $0.84 per gram over the previous 12 months.

How much cannabis did Greenway (GWAYF) sell in Q2 2024?

Greenway sold 1,484 kilograms or kilogram equivalents in Q2 2024, a 21% increase from 1,226 kilograms in Q2 2023.

What was Greenway's (GWAYF) Adjusted EBITDA in Q2 2024?

Greenway reported a negative Adjusted EBITDA of $253,010 in Q2 2024, compared to negative $112,221 in Q2 2023.