The company plans to continue its expansion in the next year.
Montreal-based The Good Shroom Co. (TSXV: MUSH) nearly doubled its revenue and turned a small profit in the first quarter of its 2024 fiscal year, the company reported in its most recent quarterly financials.
The Canadian cannabis operator made a net profit of C$92,126 in the quarter that ended Oct. 31, on revenue of C$1.5 million, which itself was up from C$822,569 for the same period a year ago. It’s also a bright start to the year after TGSC posted a C$452,140 loss for the last fiscal year, including a C$191,569 loss in the first quarter a year ago.
The first quarter of fiscal 2024 marks the company’s most profitable three months ever, it said in a statement, adding that 98% of revenue came from marijuana product sales, with the other 2% from wellness beverages.
“We are pleased with today’s results, marking our third consecutive quarter of positive cash flow,” CEO Eric Ronsse said in the release. “Our strategic focus on one market at a time, coupled with a diverse range of product categories, has proven to be a winning formula for us.”
“Looking ahead, our primary thrust remains on expanding our footprint within our core market, Quebec, which represents a substantial market size exceeding $600 million and is anticipated to surpass $700 million this year,” Ronsse added. “This robust market provides ample opportunities for growth and market share expansion. Our strategic initiatives are well-aligned to capitalize on this thriving market.”
Ronsse added that the Alberta market will be a secondary priority for Good Shroom, and he’s “optimistic” heading into 2024.
At the end of October, Good Shroom had C$1.9 million in total assets, including C$414,800 in cash, against C$1.4 million in total liabilities. The company also reported that it has no long-term debt.
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