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VANCOUVER, BC / ACCESS Newswire / March 31, 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 second quarter financial results ("Q2 2025") for the three and six months ended January 31, 2025 and 2024 ("Fiscal 2025"). 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.
Q2 2025 Highlights
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Revenue of $4.4 million
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Gross profit of $1.5 million
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Gross margin of 35%
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Net loss of $0.3 million
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2 nd place ranking in the Nevada flower category
FISCAL 2025 AND FISCAL 2024 CONSOLIDATED OPERATING FINANCIAL HIGHLIGHTS
Revenue
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During Q2 2025, the Company recorded revenues of $4.4 million, an 11% increase over Q1 2025, reflecting an uptick in the Nevada cannabis market and demonstrating the strength of the AMA brand and its position as one of the top 5 selling brands in the state. Total revenues for Fiscal 2025 were $8.4 million and $9.8 million for Fiscal 2024. The decrease is attributed to slower retail sales in Nevada during Q1 2025.
Gross Profit
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The Company generated gross profit of $1.5 million in the current period compared to gross profit of $1.4 million in the prior year comparable period. Gross profit was $2.8 million for Fiscal 2025 and gross profit of $3.0 million for Fiscal 2024. The decrease in gross profit was primarily due to slower sales in Q1 2025.
Gross Margin
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Gross margin calculated as gross profit divided by revenue was 35% in Q2 2025 and 30% in Q2 2024 and 34% in Fiscal 2025 and 31% in Fiscal 2024. The increase is attributed to operational efficiencies in cultivation and production.
Expenses
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During the reporting period, expenses decreased to $1.8 million from $2.0 million in the prior year comparable period. Expenses were $3.7 million for Fiscal 2025 compared to $4.0 million for Fiscal 2024. The decrease from the prior year was primarily due to reduced wages and benefits.
Net Loss
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Net loss for Q2 2025 was $0.3 million compared to $0.6 million in Q2 2024. Company-wide, Fiscal 2025 net loss was $0.89 million and comprehensive loss was $0.7 million, compared to Fiscal 2024 net loss of $1.0 million and comprehensive loss of $0.6 million in the prior year comparable period.