Nevis Brands (CSE:NEVI) is tracking toward more than C$3 million in revenue for 2024 as it expands its cannabis beverages into additional states, following up on its strong financial performance last year.
The company achieved a 44% jump in revenue for the fourth quarter of 2023 to C$395,876 and full-year revenue of C$671,000.
It primarily generated revenue by licensing its Major branded cannabis beverages to producers in various states, with revenue contribution expected from four additional states by the end of 2024.
CEO John Kueber joined Proactive to discuss Nevis’ financial results and its expansion plans and teased the launch of new product formats.
Proactive: It’s your first full year numbers that we’re talking about but with a caveat, it isn’t really your first full year. Can you explain that?
JK: With the switchover from Pascal Biosciences, we changed the name to Nevis Brands (CSE:NEVI) and engaged in our current business which is cannabis beverages. There were some expenses with the financial transition that we had to cover. Where the company is right now, based on five months, it gives investors a glimpse into our revenue growth and how we’re operating the business.
Quarterly revenue saw an impressive 44% increase and that’s not including some of the states that you are going to start seeing revenue from. Tell me about that last quarter and how that sets the stage for what’s ahead.
To give a quick refresher, our cannabis beverages are licensed to producers in five states and we’ve been going through an expansion to four additional states: Missouri, California, Michigan, and Nevada. Those revenues are not yet reflected in the current results, so we’re very gratified to show the revenue growth just within our existing states.
This is really a reflection of us getting our partners re-engaged and getting more stores carrying Major and our other products. This business really starts to sing when we get those other four states, a total of nine states, all revenue-producing. We’ll see some of those come along in the first quarter and all of those come along by the second quarter. We’ll see some pretty significant revenue impact toward the end of the year as those new states go beyond the market launch and are really in full swing.
We’re talking about some pretty big states with lots of opportunity within them.
California, where we did announce a launch in January, is just a fantastic market for us. We’re really happy with the progress so far. We’re also happy with how we’ve been able to modify some of our operations. Oregon would be a good example. We switched licenses and they’re doing a relaunch that we’re quite pleased with.
It would be remiss if I didn’t mention that we’re showing some pretty strong margins of over 60% which is a result of us being a licensing company where we’re not tying up a lot of our cash. We’re able to support our partners with mostly marketing through those high margins.
What are you hoping to do over the rest of this year with Major and also the potential for other products?
We have just announced a couple of new products. Notably in Ohio, we’ve added new shorts, we’re adding new flavors in Washington, and we have some new product formats coming out that we are going to be announcing very soon. We’re tracking towards cresting past C$3 million [in revenue] in 2024 and that doesn’t take into account new products. If we get those new products launched successfully and even better, take them from a couple of states to all nine of our licensees, that creates a whole new calculus for how we look at the future growth of our business.
Quotes have been edited for clarity and style