Nevis Brands (CSE:NEVI, OTCQB:PSCBF) CEO John Kueber talked with Proactive about their impressive second quarter financial results. John highlighted the company’s continuous revenue growth and its achievement of becoming EBITDA positive within their first year of operation.
Kueber mentioned the introduction of gummies as a significant growth driver, with early positive responses from the market. The company continues to focus on building the Major brand, which is seeing rising popularity in the edibles and beverage sector.
Proactive: With the company releasing its second quarter financial numbers, the consistent theme we've seen is ongoing growth. Is that what you're most proud of right now, John?
John Kueber: We’re really happy to see our numbers continue to improve, with revenue going up as it has for the last couple of quarters. It’s still early days for our company, with less than one year in operation with these financials. For us to grow our revenue while becoming EBITDA positive is a significant milestone. We’re very pleased with this progress and aim to keep this trajectory moving forward.
As numbers come in from states like Oregon, California, Arvada, Colorado, Arizona, Ohio, and Missouri, and new states coming on board all the time, can you elaborate on how you’re continuing to build by adding states?
We're just starting to see traction in some of these places, like Missouri, for example. It's nice to see early growth, but I think we'll see even better numbers going forward.
Michigan and Mississippi are not yet on the market. We expect to be in the market this summer, with Major, and we think those will contribute to our numbers.
One other thing I'll reiterate is that we're a royalty collection model. The overall wholesale sales of Major are much larger, about five or six times the size of our revenues. We collect royalties from those sales, so sometimes our numbers are a little more modest. But we like our model of being low capex and growing those royalties.
John, is the growth strategy now focused on getting Major into more states as well as developing new products? Can you talk a bit about how you see revenue driving forward?
Gummies are going to be an important part of our growth. We've done a small release of gummies in Washington, and we're starting to see some early positive responses. We see other states getting Major gummies as well, which we think will help a lot. There are other business opportunities that we continue to evaluate, and some are exciting, though we can't talk about them just yet. Our core business is what we're focused on right now, and it's nice to see that grow and the numbers improve.
Last question, John. How important is name recognition within your industry? As you mentioned, Major has a great following. How crucial is that name recognition for continuing to see growth?
We aim to build the number one edibles and beverage brand in the United States, and we believe Major is well on its way. Some of our investors use a metrics tracking service called Headset, which shows Major consistently climbing the charts, if not already at the top in our category. So, yes, continuing to build the Major brand, staying active in marketing and events at the dispensaries, is crucial. We believe the brand itself holds significant value beyond the revenue it generates.
Quotes have been lightly edited for style and clarity