Decibel Cannabis Reports 16% YoY Drop In Q1 Revenue, CEO Expects Improved Q2 And 'Continued Path To Sustainable Growth And Profitability'
Portfolio Pulse from Jelena Martinovic
Decibel Cannabis Company Inc. (OTCQB:DBCCF) reported a 16% year-over-year drop in Q1 2024 revenue to CA$21 million. Despite the decline, the company maintains a strong market share in Canada and expects improved performance in Q2. Financial highlights include a gross margin of 48%, adjusted EBITDA of CA$3.6 million, and positive free cash flow of CA$375 thousand. Shares traded 0.47% lower at $0.0639.
May 29, 2024 | 2:18 pm
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NEGATIVE IMPACT
Decibel Cannabis reported a 16% YoY drop in Q1 revenue to CA$21 million. Despite the decline, the company maintains a strong market share and expects improved performance in Q2. Shares traded 0.47% lower at $0.0639.
The 16% YoY revenue drop and significant declines in adjusted EBITDA and free cash flow are negative indicators. However, the company's strong market share and optimistic outlook for Q2 provide some positive context. The immediate market reaction was a slight decline in share price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100