Canadian cannabis operator, LEEF Brands (CSE:LEEF) (OTC:LEEEF) reported its financial results Thursday for the three and six months ended June 30, 2024. The British Columbia-based company posted quarterly net sales of $7.9 million, compared to net sales of $9.3 million in the same period last year.

"Our financial results reflect a continued focus on operational efficiency and cost control," stated Kevin Wilson, chief financial officer. "We are proud to report that the company was cash flow positive from operations for the third consecutive quarter. Additionally, Adjusted EBITDA, which includes only the addition of stock compensation expense and the gain on the extinguishment of debt, remains positive, highlighting the profitability of our core business operations. Despite the ongoing challenges in the California cannabis market, we are confident in our strategic approach and committed to sustaining our financial momentum."

Read Also: Zig-Zag Segment On Sustainable Growth Trajectory, Turning Point CEO Reports 7% YoY Improvement In Adjusted EBITDA, Raises 2024 Guidance.

Q2 Financial Highlights:

• Gross profit was $2.7M for the three months ended June 30, 2024, which compares to $2.9 million in the same quarter of 2023.
• The gross margin was 34.0%.
• Net loss amounted to $3.9 million, compared to $20.3 million in the second quarter of 2023.
• Adjusted EBITDA of $437,138 for the three months ended June 30, 2023, compares to adjusted EBITDA of $293,268 in the same period of the prior year.

"Our goal is the be the best concentrate provider in the state and we will achieve this by continuing to focus on customer service, putting out quality products, and maintaining the relentless pursuit of getting better everyday,” CEO Micah Anderson stated. “With the comment period now closed for the rescheduling of cannabis, we are hopeful for favorable news in the coming months, which could significantly impact our operations and the broader industry."

Price Action

LEEF shares closed Thursday market session 6.67% lower at $0.0070 per share.

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Cannabis company SNDL Inc. (NASDAQ:SNDL) reported its financial and operational results Thursday for the second quarter ended June 30, 2024, reporting revenue of CA$228.1 million ($164.35 million), down by 1.6% from CA$231.9 million in the second quarter of 2023.

Year-over-year quarterly decrease was driven by market softness in the liquor retail segment, noted the Alberta-based company, while cannabis retail and operations had strong growth. Sequentially, net revenue grew 15.4%.

“The second quarter of 2024 confirms our progress and path to profitability, including an all-time record gross margin of 25.5%”, stated Zach George, CEO of SNDL. “As we continue making progress on our long-term strategic plan, we are gaining sharper focus on key priorities, allowing us to effectively deploy capital to support organic and inorganic growth. This sharper focus, and our continuous pursuit of greater efficiency, led to the recent announcement of a restructuring project that is expected to deliver over CA$20 million of annualized savings, some of which are starting to materialize in the third quarter of 2024. Our unique investment portfolio gives us additional optionality to close on U.S. assets currently under restructuring and become a leading global cannabis company. We look forward to sharing our long-term strategic plan in detail with investors in the coming months.”

Read Also: SNDL Announces Restructuring, Consolidation Of Cannabis Segments: Here’s What It Means

Q2 Financial Summary

• Gross profit was CA$58.2 million, representing a record gross margin of 25.5%, compared to CA$51.9 million, or 22.4% margin in the second quarter of 2023. The 12% year-over-year improvement and 15% sequentially SNDL attributes to the data sales programs, mix optimization and supply chain productivity initiatives.
• Net loss for the period amounted to (CA$4.97 million), compared to net loss of (CA$33.16 million) in the same period last year. An 84% improvement in operating loss was primarily driven by margin expansion and lower selling,general, and administrative expenses.
• Cash flow was negative (CA$6.0 million), which compares to negative (CA$27.8 million) in the same quarter of 2023. A 78% improvement was driven by the increase in profitability and smaller working capital build-up.
• At the end of the reporting period, SNDL had CA$783.6 million of unrestricted cash, marketable securities and investments and no outstanding debt, with CA$182.9 million of unrestricted cash as of June 30, 2024. The company has not raised cash through share offerings since June 2021.

Q2 Operational Highlights

• Acquired 4 Dutch Love stores and launched the Value Buds brand in British Columbia by rebranding 3 of these stores.
• Continued the expansion of proprietary data licensing in both Cannabis and Liquor Retail, increasing data sales from CA$3.8 million in the first quarter of 2024 to $4.2 million in the second quarter.
• Increased SNDL’s Liquor Retail segment private label revenue by 17% year-to-date, reaching 11.8% share of revenue.
• Completed the acquisition of the principal indebtedness of Delta 9 for a purchase price of CA$28.1 million in early July, becoming its senior secured creditor with a first priority security interest in all assets of Delta 9 and certain of its subsidiaries.
• Entered into a stalking horse purchase agreement for Indiva Limited’s business and assets.
• Delivered the first international export contract of 2024, with the shipment of bulk flower to Israel.

Price Action

SNDL shares closed Thursday market session 2.64% lower at $2.21 per share.

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