Toronto-based cannabis company Red White & Bloom Brands Inc. (CSE: RWB) posted its annual filings for the quarter and year ending Dec. 31, 2023, showing slight signs of improvement against the backdrop of huge losses and mounting debt.
All figures are reported in Canadian dollars.
For the fourth quarter of 2023, RWB posted revenue of $19.9 million, a $4.5 million rise from the same period in 2022. Gross profit rose to $7.4 million, a year-over-year rise of $6.1 million. The company’s adjusted EBITDA for the quarter was $1.7 million, a notable improvement from a $3.2 million loss in the same period in 2022.
On a full-year basis, RWB’s 2023 revenue was $88.3 million, a slight increase of $600,000 over 2022. Gross profit was $31.2 million, up $8.7 million, and adjusted EBITDA rose to $5.5 million from a $1.7 million loss in 2022.
Despite positive revenue, the company also saw a rise in operating expenses, primarily due to year-end adjustments and non-cash expenses related to expected credit losses. The company recorded substantial non-cash impairments of $85.2 million in the fourth quarter and $85.9 million for the full year.
According to regulatory filings, the company reported a net loss of $118.1 million for the fourth quarter, an improvement against its restated net loss of $206.1 million for the same period in 2022. For the full year, the company reported a net loss of $143.6 million, an improvement from the restated net loss of $242.1 million in 2022.
RWB completed its acquisition of the Aleafia group of companies in January, which expanded its presence in North America and internationally.
“The company has also positioned itself to capitalize on market opportunities in jurisdictions such as Florida and its emerging legalization movement, where our prior strategic investments will provide the ability to establish a stronghold,” Colby De Zen, president and director, said in a statement.
De Zen added that the company will focus on restructuring its financing arrangements, optimizing operations, leveraging its brand through “asset light” licensing, and driving profitability through procurement initiatives.
The company also made inroads into the Ohio market in November 2023 via a licensing arrangement with a local distributor.
RWB’s total debt stood at $240 million at the end of 2023, filings show, a significant increase from its restated total debt of $171.8 million at the end of 2022.
