New product roll-outs and concentrate sales helped craft cannabis producer Decibel Cannabis Company Inc. (TSXV: DB) (OTCQB: DBCCF) from losing more revenue after almost two-months of not having products on shelves due to Covid restrictions.
On Monday, Calgary-based Decibel, which owns craft cannabis brand Qwest, reported second-quarter net revenue of $12.4 million, a 1.4-per-cent decrease from the first quarter.
The decrease is attributed to a seven-week period where products were out-of-stock due to provincial distributors decreasing inventory levels and Covid restrictions on in-store shopping in Ontario.
Sales growth was driven by vape and concentrate products, which totalled $5.7 million, a 2 per-cent quarterly increase.
In the live concentrates category, Decibel recently released two live resin vapes under its brand General Admission. While Pressed by Qwest, Decibel’s premium live resin brand, added Apricot Kush Gems & Juice and Apricot Kush Live Sugar.
“We continue to build a solid foundation by creating meaningful brands, high quality products and executing against our aggressive strategic plan,” CEO Paul Wilson said in a statement.
Gross margin was 41 per-cent in the second quarter and adjusted earnings before interest, taxes, depreciation and amortization of $2.1 million, an increase of 6 per cent over the first quarter.
Average wholesale net price per gram was $7.96, an 11 per-cent decrease from the first quarter due to greater allocation of products to the Qwest brand, versus Qwest Reserve which has a higher price point.
But gross profits decreased 25 per cent to $6.4 million while share-based compensation increased 231 per cent to $1.2 million, leading to comprehensive losses rising 123 per cent to negative $620,000.
By the end of the second quarter, Decibel reported $3.6 million in cash, a 202.2 per-cent increase from the previous one.
Company stock remained flat Monday at $0.32 on the TSX Venture Exchange.
15 new products launched in Q2 and early Q3
Craft cannabis connoisseurs will have more cultivars on their menu after Decibel listed 15 new products for the April and June Ontario Cannabis Store product calls.
The weed company launched its first large format pre-roll packs of dried flower product containing six, seven and 12 half-gram pre-rolls under its General Admission brand.
Qwest Reserve also expanded its repertoire with two new cultivars, Stuffed French Toast and Sunset Mac.
Decibel has three production facilities licensed by Health Canada and six retail store locations under the Prairie Records dispensary name located in Saskatchewan and in Alberta.