Canadian producer Avant Brands Inc. (TSX: AVNT) (OTCQX: AVTBF) posted decent financials for the third quarter ending Aug. 31, with the company showing steady growth as it shores up its international prospects.
The company has continued to enjoy climbing sales and positive operational cash flows. Over the past year, its made its most money ever, totaling $33 million. The quarter’s performance was also boosted by what CEO Norton Singhavon called their “best quarter for cannabis harvests.”
In a statement, Singhavon said that the company “continued our trend of delivering strong year-over-year sales growth, coupled with positive cash flow from operations…which sets the stage for additional sales growth in Q4 2023 and beyond.”
Key developments include:
- A 61% year-over-year surge in gross revenue, totaling $7.5 million.
- Net income of $1.3 million, according to filings, a $1.8 million improvement.
- Adjusted EBITDA showing a $200,000 uptick, settling at $900,000.
- The sale of a record 1,558 kg of cannabis, marking a 147% increase.
The Kelowna-based company’s international footprint is also expanding, with Avant strengthening ties in existing markets like Israel, while forging new paths in Australia, Europe, and especially Germany.
Following its acquisition of the Flowr Group in February, Avant implemented cost-cutting measures which have since resulted in positive operational cash flow for Flowr. The measures, combined with its aggressive market expansion, have laid a foundation for the firm’s future endeavors.
The company had $1.7 million in the bank and a working capital of $17.4 million by the end of the period.
It also noted that in Canada, the company achieved the notable rank of 49th on The Globe & Mail’s list of Canada’s Top Growing Companies for 2023, outpacing other public and private cannabis producers.
“The company continues to have regularly scheduled meetings and calls with its existing clients and prospective clients in Israel,” it said. “Currently, the company has not received any information that would indicate a decrease or cancellation of near-term purchase orders.”