Nevis sees 15% second quarter revenue growth, still posts net loss

Cannabis drink maker Nevis Brands Inc. (CSE: NEVI) reported its second fiscal quarter ending May 31, showing a 15% quarter-over-quarter revenue increase.

The company generated revenue of C$436,532, up from C$380,729 in the previous quarter. Gross profit was C$291,392, with a 67% gross margin.

Nevis posted a net loss of C$54,788 for the quarter. However, when excluding interest, taxes, depreciation, and amortization, the company reported positive earnings of C$23,536, versus a loss of C$20,535 in the prior quarter.

In a statement, CEO John Kueber called the shift to positive EBITDA “an important milestone for our company.”

The second quarter results reflect revenue from eight states where Nevis operates, it said. The company expects to add Michigan and Mississippi to its revenue streams in the third quarter.

“We still have significant opportunities for growth in Oregon, California, Nevada and Missouri as we continue to optimize operations and grow store counts in collaboration with our licensees,” Kueber said.

Nevis, known for its Major product line, partners with cannabis product manufacturers and distributors across multiple U.S. states. The company typically collects a 15-25% royalty on sales from its licensing agreements, it said.

Despite revenue growth, Nevis faces challenges. As of May 31, the company had a working capital deficit of C$246,090. Its filings note “material uncertainties” about the company’s ability to continue as a going concern.

Kueber anticipates further revenue growth in the third quarter, citing potential contributions from new products in Washington and an expected launch in Mississippi this summer.

The company aims to establish Major as the leading beverage and edibles brand in the United States, according to Kueber.

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