Nevis Brands (CSE:NEVI, OTCQB:NEVIF) reported consistent revenue and gross margins in the second fiscal quarter of 2025, supported by new market traction and initial sales from its hemp-derived THC beverage line.
Revenue for the quarter ended May 31, 2025, was about $419,000, up slightly from about $416,000 in the prior quarter.
Gross profit held steady at about $315,000, maintaining a gross margin of 75%.
“Our operating model continues to generate attractive gross margins, and our expanding product portfolio is opening up new, scalable revenue streams," CEO John Kueber said in a statement. "We're building a solid foundation for long-term, profitable growth.”
Nevis highlighted that it continues to generate revenue from newer markets such as New Jersey and Missouri, where its brands Major and Happy Apple are gaining traction.
The company also recorded its first full quarter of sales from the Happy Apple hemp-derived THC beverage, launched earlier in 2025.
Initial consumer reception has been positive, particularly in non-dispensary retail channels. Nevis expects sales momentum to build in the second half of the year as distribution expands.
Further, Nevis is pursuing new distribution agreements to further expand the reach of its product portfolio.
Nevis recorded a net loss of about $92,000 compared to net income of $60,000 in Q1. The company reported an EBITDA loss of $16,226, compared to an income of $135,000 in the previous quarter.
The decline in earnings was primarily attributed to two non-operational items: a foreign exchange loss of more than $80,000 due to the depreciation of the US dollar, and elevated audit and accounting costs related to the company’s fiscal year 2024 audit and the transition to a new auditor.
“Although our Q2 bottom-line results reflect the impact of currency effects, we remain confident in the health of our core business,” Kueber said.
“With strong brand momentum, disciplined cost control, and new products gaining market share, Nevis is entering the second half of fiscal 2025 from a position of strength.”
He added: “We’re excited about the early returns from our hemp-derived THC initiative and remain focused on scaling revenues while progressing toward sustained profitability.”