Avicanna (AVCN) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenue of CAD 25.5 million, a 52% increase year-over-year, with the highest-ever quarterly revenue in Q4 2024 and growth from both Canadian and international segments.

• Gross profit reached CAD 12.9 million, up 94% from the previous year, and gross margins improved to 51%, a 40% increase from 2023.

• Adjusted EBITDA loss narrowed to CAD 1.4 million from CAD 4.3 million in 2023, reflecting significant operational improvements.

• All outstanding non-convertible debentures ($1.3M) repaid during 2024, strengthening the financial foundation.

• Advanced R&D and clinical programs, including real-world evidence studies, new product launches, and the first pharmaceutical approval for Trunerox in Colombia.

Financial highlights

• MyMedi platform generated CAD 21.7 million in gross revenue, with Avicanna proprietary products accounting for 85,000 units sold.

• Licensing and service revenue rose to CAD 2.4 million from CAD 530,000 in 2023.

• Operating expenses increased by 17%, mainly due to the first full year of MyMedi operations, with largest increases in salaries and marketing.

• Accounts payable reduced by over CAD 1 million and all external debt paid down; working capital deficit improved from CAD 3.9 million to CAD 1.6 million.

• Annual revenue reached CAD 25.5 million, with CAD 6.6 million in Q4; 52% year-over-year growth.

Outlook and guidance

• Confident in achieving profitability in 2025, with focus shifting to scale and growth after completing cost optimization.

• Management expects continued growth, international expansion, and innovation, building on a strengthened financial base.

• Plans to deepen engagement with the Canadian medical community and scale the MyMedi plus RHO Phyto combination.

• Positioned to replicate the business model internationally, especially in Europe, and advance the pharmaceutical pipeline for U.S. market readiness.

• Focus remains on advancing cannabinoid-based medicine and expanding core business pillars.