Canadian cannabis producer Avant Brands Inc. reported a significant surge in international sales during its third quarter, marking a pivotal shift in its market focus. The company witnessed record revenues, largely driven by escalating demand overseas, even as domestic recreational sales declined.
International Demand Overtakes Domestic Sales
For the first time, Avant’s export wholesale revenue outpaced its Canadian recreational sales.
- Export wholesale revenue soared to C$5.1 million, more than doubling from the previous year.
- Domestic recreational sales fell by 30%, settling at C$2.8 million.
- The company has inked nine international deals this year, targeting markets like Australia and Germany.
CEO Norton Singhavon stated, “Avant Brands is rapidly establishing itself as a leader in the global cannabis market.” The company is also eyeing opportunities in the Czech Republic, Poland, Switzerland, and the U.K., tapping into a combined population exceeding 250 million.
Record Production Amid Market Shift
Avant achieved unprecedented levels in cannabis production and sales volumes.
A table highlighting key production metrics:
| Metric | Q3 Figures | Year-Over-Year Change |
|---|---|---|
| Cannabis Production | 3,441 kilograms | Up 5% |
| Cannabis Sold | 3,087 kilograms | Nearly doubled |
| Adjusted EBITDA | C$2.1 million | Third straight quarter above C$2 million |
The increase in production supported the surge in international shipments. However, the company’s gross profit fell to C$1 million from C$5 million a year ago, primarily due to biological asset valuation impacts.
Financial Highlights and Strategic Focus
Despite challenges, Avant improved its cash position and focused on profitable core items.
They reported:
- An improvement in cash balance by C$2.4 million year-to-date.
- Generation of C$1.7 million in operating cash flow year-to-date.
- A net loss of C$2.5 million for the quarter, compared to a net profit of C$1.3 million the previous year.
During the quarter, Avant streamlined its product offerings to concentrate on high-performing and profitable items. The company also licensed its blk mkt brand in Australia, expanding its international footprint that includes deals in Germany, Israel, and Switzerland.
Emily Wilson is a talented wordsmith whose passion for cannabis shines through in her eloquent articles that explore the plant’s cultural significance and historical context. With a focus on arts and lifestyle, she weaves together narratives that celebrate the creativity, innovation, and community fostered by cannabis enthusiasts worldwide. Emily’s unique perspective and engaging storytelling invite readers to embark on a journey of discovery and appreciation for the diverse facets of the cannabis experience.
