Nevis Brands (CSE:NEVI) reported a 44% year-over-year jump in revenue for the fiscal fourth quarter driven by royalty revenue for its Major branded cannabis beverages from licensees in five states.
Revenue for the quarter ended November 30, 2023, was C$395,876, up from C$275,669 in the year-ago quarter.
It also reduced its cost of goods sold by 7% year-over-year from C$144,381 to C$134,223.
"We are pleased that we were able to both grow revenues and reduce our cost of goods sold in Q4,” CEO John Kueber commented.
“We continue to grow revenues in states where we are currently operating and are excited about the additional revenues that will be generated from licensees that have been secured but did not contribute to revenues as of yet."
He noted that the company’s Q4 revenues do not include Nevada or California, which are now revenue-generating. “Michigan and Missouri are also slated to contribute to revenues in 2024,” he said.
For fiscal year 2023, Nevis posted revenue of C$671,545 compared to nil revenue in 2022, noting that the company has only been operational since July 1, 2023, and is reporting its year-end financials as related to its previous operations as Pascal Biosciences.
Its net loss for the year was C$399,772.
“We are pleased to conclude our fiscal year, which included a number of expenses and charges related to the transition from Pascal Biosciences, the previous business held by the company,” CEO Kueber said.
“With continued revenue growth, managing our cost of goods sold, and the completion of our transition from Pascal Biosciences business, we are enthusiastic about our future 2024 performance.”
He said he believes cannabis beverages have reached an inflection point where the brands that are currently in the market are ones with staying power and will remain a cornerstone of cannabis consumers' consumption habits.
“Nevis remains committed to its low capital expenditure model of expansion through licensing of the Major brand, which continues to grow, having expanded from five states to nine states in the last six months,” he said.
“The Major brand has opportunities to grow not just by expansion into other markets, but by introducing new products not only in beverages but other edible products.”