Canadian licensed producer Lotus Ventures Inc. (OTC: LTTSF) reported an uptick in sales in its financial and operational results for the fiscal year ended Aug. 31.
The company established it has a decent foundation for continued growth, with an emphasis on maintaining the sales trajectory of its popular house brand flower and expanding its strain offerings in the coming fiscal period.
Despite a net loss of $1.87 million for the year, the British Columbia-based company saw a notable 46% sales increase in the last quarter and an 18% year-over-year rise. That growth was attributed to the popularity of Lotus’s Keylime Kush cannabis flower and pre-rolls, which were launched in January and are now available in more than 300 retail outlets across British Columbia and Ontario.
Throughout the fiscal year, Lotus reached several milestones, including the launch of Keylime Kush and its subsequent formats, such as pre-rolled joints and a 14-gram package. The company also expanded into Ontario in April with a 3.5-gram offering.
The company reported revenues totaling $1.99 million for the fiscal year, with the fourth quarter contributing $751,743, highlighting sustained sales momentum. Production remained steady at approximately 500,000 grams in the last quarter, rounding up to 2 million grams for the year.
While Keylime Kush remains a production focus, Lotus is preparing to diversify with new strains, the company said.
In addition to domestic operations, Lotus completed its certification process to enter the Israeli medical cannabis market through wholesale partnerships, marking a meaningful step in the company’s expansion strategy.
The financials show a considerable improvement from the previous year’s net loss of $4.9 million. The reduction in net loss is credited to more sales, a rise in gross margin, and an absence of an inventory impairment that affected the prior year’s figures. However, property tax expenses for the year increased by $50,193 due to rate hikes and late payment charges.