Toronto, Ontario-based Supreme Cannabis Company Inc. recorded a small profit in its first fiscal quarter of the year, the company announced this week.
The cannabis producer’s adjusted EBITDA – a measure of profitability – was 266,000 Canadian dollars ($203,000) for the quarter ended Sept. 30, an improvement from the previous quarter in which Supreme saw a CA$4.2 million loss.
Net revenue grew 25% from the prior three-month period to CA$11.9 million in the latest quarter.
By category, Supreme says revenue consisted of wholesale cannabis sales (CA$4.4 million) and recreational cannabis sales (CA$7.5 million).
The company’s biggest operating expenses in the latest quarter were wages and benefits, but those costs declined 28% year-on-year to CA$3.5 million.
Supreme says it continues to transition to a “premium” cannabis consumer packaged goods business.
In an interview with Marijuana Business Daily earlier this year after joining Supreme, CEO Beena Goldenberg rejected the “if you build it, they will come” strategy utilized by some of her competitors (where producers build out infrastructure years ahead of actual demand).
“What are the consumers looking for? Where do we have to be?” she asked at the time.
To that end, Supreme now says it “remains focused on cost containment” while it develops “a product line that addresses consumers’ needs at a variety of price points and form factors.”
Supreme ended the quarter with CA$20.4 million in cash.
Shares of Supreme Cannabis Company are traded on the Toronto Stock Exchange as FIRE.
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