Nextleaf Solutions Ltd (CSE:OILS, OTCQB:OILFF) has posted impressive year-over-year revenue growth as the manufacturer and distributor of cannabis extracts expanded its footprint in Canada through partnerships with government distributors and authorized retailers during 2022.
For the fiscal year ended September 30, 2022, the company posted total revenue of $5.3 million, up 52% from the $3.5 million reported in the previous fiscal year.
It swung to a gross profit of $661,238, compared to a loss of $855,029 in the 2021 fiscal year.
READ: Nextleaf Solutions broadens its global cannabis footprint with first international shipment of vape products
The company also decreased its cost of sales by 12% year-over-year, from $4.2 million to $3.7 million.
Nextleaf noted a significant portion of its cost of sales was related to excess capacity and, as such, as revenue scales with increased distribution, it expects its gross profit to increase exponentially.
Other highlights from fiscal 2022 included the brand remaining a top-10 supplier of cannabis vapes and oils in British Columbia, and commencing sales of its Glacial Gold branded products in Ontario through the Ontario Cannabis Store, in Nova Scotia through the Nova Scotia Liquor Corporation, in Saskatchewan through National Cannabis Distribution, and to medical patients through the Quebec-based medical cannabis sales platform Mendo Medical and Hybrid Pharm Inc.
Nextleaf CEO Paul Pedersen said during 2022, the business had graduated from an ingredient supplier into a manufacturer and distributor of branded consumer products.
"Nextleaf established itself as one of the top producers of cannabis vapes and oils with the success of Glacial Gold branded products,” Pedersen said.
"Nexteaf has a clear path to profitability with its right-sized operating overhead and steadily growing revenue base."
Nextleaf is a federally regulated manufacturer and distributor of cannabis vapes and oils under its award-winning prohibition-era brand Glacial Gold.
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