Avicanna Reports Q1 2025 Results and First Profitable Quarter

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Avicanna Inc.
Avicanna Inc.

TORONTO, May 15, 2025 (GLOBE NEWSWIRE) -- Avicanna Inc. (“Avicanna” or the “Company) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing, and commercialization of plant-derived cannabinoid-based products is pleased to announce and report the results of Q1 2025 and the of the Company’s milestone of achieving its first profitable quarter.

Management Commentary:
"Starting 2025 with positive momentum, we are proud to report our first profitable quarter—a milestone that reflects our strategic focus and operational discipline. With this solid foundation, we are now positioned to focus on scaling our Canadian operations, international expansion, and advancing of our R&D pipeline and intellectual property" stated Aras Azadian, CEO of Avicanna.

Q1 2025 Financial Highlights:

  • First Profitable Quarter: Net income of $74,154 and comprehensive income of $876,092, driven by cost efficiencies and margin improvements.

  • Adjusted Positive EBITDA: Adjusted positive EBITDA of approximately $431,000, reflecting a significant year-over-year improvement from approximately $18,000 in Q1 2024.

  • Gross Profit and Gross Margins: Gross profit of $3.54 million in Q1 2025, a 7% increase year-over-year. Consolidated gross margins improved to 56% in Q1 2025, up from 51% in Q1 2024, driven by portfolio optimization and a substantial increase in licensing and service revenue.

  • Revenue Performance: Revenue of $6.32 million for the quarter ended March 31, 2025, representing a slight 2% decrease compared to Q1 2024. This was accompanied by a 5% reduction in general and administrative (G&A) expenses.

Other 2025 Corporate Highlights:

Canadian Commercial Advancements: In the first quarter of 2025, Avicanna expanded its Canadian portfolio to 42 proprietary commercial SKUs, representing a 35% increase from 31 SKUs in the same period in 2024. In parallel, the Company continued piloting innovative formulations in the Canadian market while optimizing its portfolio, maintaining a total of 135 commercial listings.

Avicanna Announces Scientific and Medical Affairs Collaboration with Aspeya: The scientific and medical affairs collaboration with Aspeya (formerly known as Vectura Fertin Pharma), a subsidiary of Phillip Morris International, aims to facilitate research and medical affairs initiatives related to medical cannabis in Canada. The scientific and medical affairs collaboration will prioritize engagement with the Canadian medical community, patients, patient advocacy groups, and insurers to gain insights into the challenges associated with accessing medical cannabis. The scientific and medical affairs collaboration will leverage Avicanna’s medical cannabis platform, MyMedi.ca, with the aim of improving patient access and patient support.