Nevis Brands (CSE:NEVI) saw continued momentum in the sales of its cannabis beverages in the United States during the first quarter, with the launch of new products and its expansion into new markets expected to drive growth in 2024.
"We are pleased to start our fiscal 2024 by remaining close to our Q4 2023 revenues and continuing to build our market footprint,” CEO John Kueber commented.
During Q1, which ended on February 29, 2024, the company generated C$380,729 in revenue, compared to C$395,876 in the previous quarter.
The cost of goods sold was C$137,223 leaving the company with a gross profit of C$242,835. Its adjusted net loss for the period was C$20,535.
“While some initial revenues from California and Nevada were included in Q1, our revenue gains were offset by a change in licensee in Oregon which reduced our license revenues in that territory to almost zero,” Kueber pointed out.
“We also experienced some seasonally lower orders in several of our existing territories over the holiday season.”
He added that the company also incurred higher than normal administrative and marketing costs related to its 2023 audit and payments related to the listing on the US OTC market.
With this process completed, Nevis expects fewer expenses in Q2, as well as higher revenues as initial sales come through from newly entered markets.
"Looking forward to Q2, we believe we will have increased revenues, which will include revenue streams from Oregon and early revenues from our launch in Missouri in late April," he said.
"Our California retail footprint continues to develop. We also look forward to announcing additional products for our existing markets."
Led by its flagship brand Major, Nevis’ cannabis products have been consumed by millions of consumers across Washington, Oregon, California, Colorado, Arizona, Nevada and Ohio with agreements to expand to Michigan and Missouri.