In This Article:
VANCOUVER, BC / ACCESS Newswire / February 25, 2025 / 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE:TGIF)(OTC PINK:TGIFF), a Nevada-focused cannabis cultivator and producer, is pleased to announce its fourth quarter ("Q4 2024") and audited annual financial results for the years ended July 31, 2024 and 2023 ("Fiscal 2024"). All amounts expressed are in Canadian dollars.
The Company owns 91% of Alternative Medicine Association (AMA), the Company's cultivation and production subsidiary centred on the medical and adult-use cannabis market. Focusing on quality and value offerings, the Company wholesales cannabis flower, pre-rolls and boutique concentrate products under its proprietary AMA brand to retail accounts in the state of Nevada. AMA branded products consistently rank as top sellers based on volume in the state and the Company is a key supplier in the Las Vegas market.
Highlights
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Delivered record revenues of $19.3 million for 2024, a 15% increase year-over-year
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Recorded gross profit of $2.9 million compared to a gross loss of $1.4 million in 2023
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Increased gross margin by 14%
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Reduced net loss to $0.6 million from a net loss of $14.6 million in the prior year
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Recognized as a top selling cannabis brand in Nevada1
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Recipient of the 2024 LeafLink List Awards for Top Selling Brand in Nevada
1https://www.headset.io/brands/alternative-medicine-association-ama
Fiscal 2024 and Fiscal 2023 Consolidated Operating Financials
Revenue Increase
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During Fiscal 2024, the Company generated revenue of $19,350,916 compared to $16,881,564 in the prior year comparable period, a 15% increase from Fiscal 2023. Note: Income from discontinued operations is not included.
Gross Profit and Net Loss Improvements
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Gross profit increased to $2,941,963 during Fiscal 2024, compared to a loss of $1,366,753 in Fiscal 2023.
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In Fiscal 2024 net loss was $624,085 and comprehensive loss was $1,065,679, compared to Fiscal 2023 net loss of $14,587,304 and comprehensive loss of $13,495,843 in the prior year.
Gross Margin Increase
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Gross margin excluding fair value adjustments, calculated as gross profit excluding fair value adjustments divided by revenue was 14% in Fiscal 2024 and negative margin of 1% in Fiscal 2023, indicating slightly reduced production costs against revenues in the year. Gross margin calculated as gross profit divided by revenue was 15% in Fiscal 2024 and a negative margin of 8% in Fiscal 2023.
Management Commentary
During Fiscal 2024, the Company posted record revenues of $19.3 million, increased gross profit to $2.9 million from a loss of $1.4 million in the prior year, reduced the cost of production, resulting in a gross margin increase of 14% and reduced net loss to $0.6 million from a net loss of $14.6 during Fiscal 2023. The strong operational execution was a result of a disciplined approach to running a more efficient operation, optimizing the cultivation facility, and to the fair market valuation of biological assets. The Company achieved record revenues due to the strength of the AMA brand in Nevada, which is based on a commitment to quality and consistency, while delivering a diverse product portfolio that meets changing consumer demands.