Avant Brands (AVNT) Q4 2024 earnings summary

Executive summary

• Achieved record gross revenue of $40.0M and net revenue of $35.8M in FY 2024, up 32% and 36% year-over-year.

• Export wholesale revenue reached $19.4M, a 107% increase over FY 2023, driven by international expansion.

• Cannabis production rose 19% to 12,643 kg, and sales surged 91% to 13,560 kg year-over-year.

• Q4 2024 set records: gross revenue $12.1M (+109%), net revenue $11.0M (+127%), export wholesale $7.3M (+352%).

• Growth fueled by strong demand in Australia, Germany, and Israel, with export revenue comprising 66% of Q4 net revenue.

Financial highlights

• Adjusted EBITDA for Q4 2024 was $2.3M, marking the fourth consecutive positive quarter.

• Adjusted Net Income for Q4 2024 reached $2.7M, also the fourth consecutive positive quarter.

• Q4 2024 gross margin (adjusted for fair value) rose to $4.2M (+192%), with margin percentage up to 38% from 30%.

• FY 2024 gross margin (adjusted) was $16.2M (+78%), with margin percentage at 45% versus 34% in FY 2023.

• Q4 2024 saw a gross loss of $1.8M due to non-cash biological asset valuation impacts, despite higher revenues.

Outlook and guidance

• Plans to expand sales in Australia, Germany, Israel, and Portugal, and enter new markets like Czech Republic, Poland, Switzerland, and the UK.

• Focus on refining product portfolio, optimizing operations, and exploring strategic partnerships.

• Anticipates continued growth in international sales and overall sales volume in FY 2025.