1. Decibel Cannabis reported positive financial results for 2024. 2. The company has improved free cash flow and removed going concern note. 3. International sales have increased, indicating growth opportunities. 4. Q1 2025 may be softer, but expectations for Q2 are high. 5. Decibel's global growth strategy remains a focus for profitability.
The removal of the going concern note and improved cash flow signify financial stability. Similar past announcements by cannabis companies have led to positive price movements.
Improved financial health and growth strategies are compelling for investors, indicating high importance.
The anticipated growth in Q2 could positively impact stock prices in the next quarter. Past performance shows immediate market reactions to quarterly results.
/PRNewswire/ - Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSXV: DB) (OTCQB: DBCCF), a market leader in premium cannabis and extract manufactured products, is pleased to announce its audited financial results for the three and twelve month periods ending December 31, 2024.
"We ended 2024 with strong momentum and renewed confidence in our global growth strategy. The removal of our going concern note is a direct reflection of the operational discipline and financial resilience we've built — including improved free cash flow, strategic reductions to payables, and our integration of AgMedica. While we anticipate a softer Q1 due to timing of international shipments, we expect a meaningful ramp-up in Q2 as export volumes accelerate. With these building blocks in place, we remain focused on profitable growth, both in Canada and abroad." — Benjamin Sze, Chief Executive Officer.
_________________________________1 Adjusted EBITDA is a Non-GAAP financial measure. Refer to "Cautionary Statement Regarding Certain Non-GAAP Measures" for further details.
_________________________2 EBITDA is a Non-GAAP financial measure. Refer to "Cautionary Statement Regarding Certain Non-GAAP Measures" for further details
________________________________3 Free Cash Flow is a Non-GAAP financial measure. Refer to "Cautionary Statement Regarding Certain Non-GAAP Measures" for further details.
4 Adjusted Net income is a Non-GAAP financial measure. Refer to "Cautionary Statement Regarding Certain Non-GAAP Measures" for further details.
| Three months ended | Year ended | December 31 | |
|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 |
| Gross Canadian recreational sales 1 | $33,820 | $136,353 | $173,990 |
| Net Canadian recreational sales 1 | $21,869 | $88,392 | $102,532 |
| International sales 1 | $3,443 | $4,145 | $3,692 |
| Total Gross revenue | $37,263 | $140,498 | $177,682 |
| Net revenue | $25,312 | $92,537 | $106,224 |
| Gross profit before fair value adjustments | $12,323 | $44,355 | $48,538 |
| Gross margin before fair value adjustments | 49% | 48% | 46% |
| Adjusted EBITDA 2 | $5,201 | $17,936 | $25,125 |
| Net income (loss) and comprehensive income (loss) | $13,260 | ($1,249) | $9,463 |
| Adjusted net income (loss) 2 | $1,014 | ($190) | $200 |
| Cash flow from continuing operations | $2,390 | $2,319 | $8,188 |
| Free cash flow 2 | $2,221 | $1,396 | $6,052 |
Income (loss) per share: $0.03
Adjusted EPS 3: -
1 Supplementary financial measure. Refer to "Cautionary Statement Regarding Certain Non-GAAP Measures" for further details.
Decibel's audited condensed consolidated financial statements for the three and twelve month periods ending December 31, 2024 (the "Financial Statements") and related management's discussion & analysis for the three and twelve month periods ending December 31, 2024 ("MD&A") are available on SEDAR+ under the Company's profile at www.sedarplus.ca.
Decibel is a consumer-focused cannabis company known for premium products that delight customers through innovation and quality. With brands like General Admission, Qwest, and Vox, Decibel's offerings are available across Canada, with expanding reach into global markets. Following the acquisition of AgMedica in Q4 2024, Decibel has added an EU-GMP-certified facility, supporting its commitment to international standards and global distribution growth. Decibel now operates three cultivation facilities and a processing and manufacturing center, positioning the company as a leader in high-quality, globally accessible cannabis products and brands.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release contains certain financial performance measures and ratios, namely EBITDA, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Adjusted EPS and Debt to EBITDA that are not recognized or defined under IFRS (termed "Non-GAAP Measures"). As a result, this data may not be comparable to data presented by other licensed producers and cannabis companies. For an explanation of these measures to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the discussion below. The Company believes that these Non-GAAP Measures are useful indicators of operating performance and are specifically used by management to assess the financial and operational performance of the Company. Accordingly, these Non-GAAP Measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
is a non-GAAP financial measure that is calculated as net income (loss) and comprehensive income (loss) excluding unrealized gain on changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based compensation, other income, finance costs, foreign exchange loss, non-cash production costs and severance payments. Non-cash production costs relate to amortization expense allocations included in production costs. This non-GAAP financial measure should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate the Decibel's operating results, underlying performance and prospects in a manner similar to Decibel's management.
| Three months ended | Year ended | December 31 | ||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Net income (loss) and comprehensive income (loss) | $13,260 | ($1,249) | $9,463 | |
| Unrealized gain on changes in fair value of biological assets | ($1,685) | ($3,442) | ($10,792) | |
| Change in fair value of biological assets realized through inventory sold | $5,480 | $4,501 | $17,570 | |
| Depreciation and amortization | $1,396 | $428 | $5,036 | |
| Share-based compensation | ($246) | $301 | ($877) | |
| Other (income) | $1,171 | ($118) | $1,305 | |
| Finance costs | $648 | $714 | $2,902 | |
| Foreign exchange loss | $50 | $194 | $239 | |
| Non-cash cost of goods sold1 | $1,184 | $1,478 | $4,216 | |
| Other adjustments2 | ($16,057) | $2,195 | ($11,126) | |
| Adjusted EBITDA 3 | $5,201 | $5,002 | $17,936 | $25,125 |
is a non-GAAP financial measure that is calculated as cash flow from operations less cash provided by (used in) investing activities. This non-GAAP financial measure should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate the Decibel's operating results, underlying performance and prospects in a manner similar to Decibel's management.
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release.
Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes", or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
Any financial outlook or future oriented financial information (in each case "FOFI") contained in this news release regarding the Company's prospective financial position, including, but not limited to net revenue, adjusted EBITDA, adjusted Free Cash Flow, and debt to EBITDA projections relating to the full year 2025 guidance in this news release, is based on reasonable assumptions about future events, including those described above, based on an assessment by the management of the Company of the relevant information that is currently available.
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SOURCE Decibel Cannabis Company Inc.