Nevis Brands (CSE:NEVI, OTCQB:PSCBF) notched a major milestone in its fiscal second quarter, breaking into positive underlying earnings for the first time.
The provider of cannabis beverages brands reported earnings before interest, tax, depreciation and amortization (EBITDA) of C$23,536 for the three months to May 31.
This was generated from revenue of C$436,532, up 15% from the first quarter.
Sales of its flagship drinks brand, Major, were made in eight US states, Washington, Oregon, California, Nevada, Colorado, Arizona, Ohio and Missouri.
Two of those, California and Nevada, were the newest additions, and two more licensees, in Michigan and Mississippi, are in pre-production and expected to contribute to revenues in the third quarter, CEO John Kueber said.
Gross profit of C$291,392 was made at a gross margin of 67%, while the net loss for the quarter was C$54,788, reduced from C$97,215 in Q1.
Moving to positive EBITDA “represents an important milestone” for Nevis Brands (CSE:NEVI, OTCQB:PSCBF), said Kueber.
“While we did incur some additional costs in our transition to a new partner in Oregon we were still able to remain positive and are working towards remaining on this trajectory in future quarters."
Looking to the quarter ending in August 31, he said, “we believe we will again have increased revenues, which will include growing revenue streams from Oregon, new products in Washington and early revenues from our expected launch in Mississippi this summer.
“We still have significant opportunities for growth in Oregon, California, Nevada and Missouri as we continue to optimize operations and grow store counts in collaboration with our licensees.”
Kueber said innovations would see new products delivered to existing markets in 2024.
“Our vision remains for Major to be the leading beverage and edibles brand in the United States."