#Canada #Greenway Cannabis #GWAY #GWAYF #Kingsville

Financial Performance Overview

Greenway Greenhouse Cannabis Corporation, a prominent cultivator of high-quality greenhouse cannabis in Canada, recently shared its financial results for the second quarter ending September 30, 2024. The report indicates substantial growth compared to the same quarter in the previous year, clearly positioning the company as a leading player in the cannabis industry.

Revenue Highlights

In Q2 2024, Greenway generated a remarkable net revenue of $1,806,957, marking a 52% increase from the $1,185,611 reported in the same quarter of 2023. Over the first six months of the fiscal year, revenue surged by 78%, climbing from $2,359,800 to an impressive $4,201,116. This upward trend reflects the company's strong market presence and customer demand for its products.

Performance of MillRite Brand

During this period, Greenway's flagship consumer packaged goods brand, MillRite, maintained its ranking as the #2 pre-roll brand in its segment. Moreover, it achieved the #2 position in both indica and sativa pre-rolls, illustrating not only a strong brand reputation but also customer preference. The total units sold under the MillRite brand saw a staggering 71% increase quarter over quarter, highlighting the growing consumer adoption and success of the brand.

Market Pricing and Costs

Greenway's ability to leverage favorable market conditions is evident, as it reported an increase in domestic wholesale prices, reaching $1.22 per gram in Q2. This reflects a notable rise from $0.84 per gram over the past year. Additionally, the average cash cost per gram stood at $1.00, encompassing all operational expenses, which positions the company favorably against its competitors as it maintains a balance between cost management and product quality.

Despite the positive revenue and unit sales figures, Greenway's Adjusted EBITDA was recorded at a negative $253,010, which is a decline compared to $112,221 in the prior year. This highlights ongoing challenges in operational scalability and cost management as the company continues to grow.

Operational Efforts and Future Outlook

CEO Jamie D'Alimonte expressed optimism regarding the company’s performance, stating, "We are elated to see last year's revenues increase by over 50% year over year, and by over 70% so far this fiscal year. This performance reflects our commitment to quality cannabis and building effective partnerships to reach consumers efficiently."

Looking to the future, Greenway is committed to introducing additional stock-keeping units (SKUs) in the upcoming year, anticipating more growth and broader product offerings to cater to Ontario users. With a solid financial performance and a growing brand presence, Greenway aims to solidify its position in the competitive cannabis market.

Conclusion

The second-quarter financial results underscore Greenway's potential and resilience in the blossoming cannabis industry. With consistent revenue growth, a robust product line, and a well-placed market strategy, the company is well-equipped for future success. Investors and consumers alike will be watching closely as Greenway continues to advance in this dynamic marketplace.