BZAM Ltd. (CSE:BZAM) (OTC:BZAMF) announced its financial and operating results on Tuesday for the three and nine-month period ended Sept. 30, 2023.
The Canadian cannabis producer reported a 112% year-over-year increase in net revenue to CA$21 million ($15,4 million) in the third quarter of 2023, primarily driven by expansion in its brand and product portfolio resulting from the merger with The Green Organic Dutchman Holdings Ltd. which was completed in 2022.
As part of the final phase of its plan to unlock company-wide synergies following the merger, BZAM laid off over 90 employees at two of its facilities in British Columbia and Ontario. The company also eliminated redundant facilities, realigning its production activities across remaining sites to maximize efficiencies and reduced selling, general and administrative expenses to achieve its goal of positive EBITDA.
“In Q3 we completed our extensive post-merger facility consolidation and cost reduction program while rationalizing several low-margin SKUs, which we expect to positively impact our operating metrics going forward,” Matt Milich, the company’s CEO said on Tuesday.
Q3 2023 Financial Highlights
- Net revenue increased 9% sequentially.
- Gross profit totaled CA$107, 000, down from CA$997, 000 in the prior year’s period.
- Loss from operations was CA$12.9 million, compared to CA$8.7 million for the prior quarter, and CA$12.1 million in the same quarter of last year.
- Net loss from operations totaled roughly CA$17 million, up from CA$6.8 million in the same quarter of last year.
- Total operating expenses were CA$13 million, up from CA$9.7 million in the prior year’s period.
- Adjusted general and administrative expenses increased year-over-year by CA$2.5 million or 59% primarily due to the BZAM Transaction, and increased by CA$0.51 million from the prior quarter, or 8%.
Nine-Month Period Ended Sept. 30
- Net revenue totaled CA$94.5 million, up from $44 million compared to the prior year’s period.
- Gross profit totaled CA$4.9 million, down from CA$13.9 million in the prior year’s period.
- Net loss from operations totaled roughly CA$101.8 million, up from CA$27 million in the same period of last year.
- As of Sept. 30, 2023, total assets amounted to CA$172 million and total liabilities were CA$86.6 million, as compared to CA$274.4 million and CA$96.1 million, respectively, on Dec. 31, 2022.
BZAMF Price Action
BZAM’s shares traded 0.9664% lower at $0.1178 per share after the market close on Tuesday.
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