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Rubicon Organics reported a modest profit of 889,166 Canadian dollars ($656,000) in its fourth quarter ended Dec. 31, 2023, but the cannabis producer’s loss for the fiscal year amounted to CA$1.1 million.
Rubicon’s net revenue for the year was CA$40.1 million, a 13% increase over 2022’s sales of CA$35.5 million, according to the Vancouver, British Columbia-based company’s financial results.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a measure of profitability, was CA$4.4 million for the year, an increase from almost CA$2 million in 2022.
Rubicon says it’s the national leader in the premium concentrate market, with a 15.2% share, citing data from analysis company Hifyre.
The company also said the national market share of its premium flower and pre-rolls was 6.9%.
Rubicon’s Free cash flow for 2023 was CA$5 million, up from CA$2 million a year earlier.
“I am pleased to announce that Rubicon has attained its seventh consecutive quarter of positive adjusted EBITDA and sixth consecutive quarter of positive operating cashflow,” Chief Financial Officer Janis Risbin said in a statement.
“Despite the challenges faced in the latter half of 2023 due to competitive pricing pressures in the Canadian cannabis sector and broader negative macroeconomic factors affecting Canadian consumers, we are optimistic about the prospects in 2024.
“With Rubicon’s prominent position as a leading force in the premium cannabis market, I am enthusiastic about the opportunities that lie ahead.”
For the three months ended Dec. 31, 2023, Rubicon’s net revenue amounted to CA$10 million, which is a 9.1% decrease from the same period one year earlier.
Looking ahead, Rubicon anticipates continued operating positive cash flow and year-over-year growth in net revenue.
The company expects much of the growth to come from branded products that are produced using external capacity and lower gross margin.
Rubicon also expects to see continued fierce competition in the “distressed” Canadian cannabis industry, with continued price compression across all categories.
The company also said it expects to refinance its debt to a longer-term mortgage facility midway through the year.
Shares of Rubicon are traded on the TSX Venture exchange as ROMJ.
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