VANCOUVER, BC / ACCESS Newswire / February 27, 2025 / 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE:TGIF)(OTC PINK:TGIFF), a Nevada-focused cannabis cultivator and producer, is pleased to announce its first quarter financial results ("Q1 2025") for the three months ended October 31, 2024 and 2023. All amounts expressed are in Canadian dollars.
The Company owns 91% of Alternative Medicine Association (AMA), the Company's cultivation and production subsidiary centred on the medical and adult-use cannabis market. Focusing on quality and value offerings, the Company wholesales cannabis flower, pre-rolls and boutique concentrate products under its proprietary AMA brand to retail accounts in the state of Nevada. AMA branded products consistently rank as top sellers based on volume in the state and the Company is a key supplier in the Las Vegas market.
Highlights
Revenue of $4.0 million
Gross profit of $1.3 million
Gross margin of 33%
Net loss of $0.6 million
3rd Place ranking as one of the most sold cannabis brands in Nevada
Q1 2025 and Q1 2024 Consolidated Operating Financials
Revenue
The Company generated revenue of $4.0 million compared to $5.2 million in the prior year comparable period. The decline in revenue is attributed to soft sales across Nevada and falling flower prices. During the month of September 2024, retail sales in Nevada fell by 23% from $78,032,417 in August to $59,861,9721 (October 2024 figures have not been released).
Gross Profit
The Company generated gross profit of $1.3 million in the current period compared to gross profit of $1.6 million in the prior year comparable period as a result of slower sales in Q1 2025.
Gross Margin
Gross margin calculated as gross profit divided by revenue was 33% in Q1 2025 and 31% in Q1 2024.
Expenses
During the reporting period, expenses decreased to $1.9 million from $2.0 million in Q1 2024. The decrease from the prior year was primarily due to decreases in tax expense.
Net Loss
Net loss for the period was $0.58 million for Q1 2025 and comprehensive loss was $0.35 million, compared to net loss of $0.38 million and comprehensive loss of $0.21 million in the prior year comparable period.
Management Commentary
Slower retail sales across Nevada impacted the Company's total revenue and gross profit as compared to Q1 2024. Despite the retail slowdown in the cannabis market, the Company made gains in gross margin as it continues to run a more efficient operation and improves its cannabis production. Against price compression in the state, the AMA brand has demonstrated resilience in a competitive landscape and ranked #3 as one of the most sold brand in Nevada by volume2.
Financial statements are prepared in accordance with International Financial Reporting Standards. Detailed information regarding the Company's financial results as well as management's discussion and analysis can be found at https://sedar.com/ and https://1933industries.com/investors/financial-information
1 https://tax.nv.gov/wp-content/uploads/2024/12/NV-Cannabis-Revenue-FY25.pdf
2 https://www.headset.io/brands/alternative-medicine-association-ama
About 1933 Industries Inc.
1933 Industries is a Nevada-based licensed producer, focused on the cultivation and extraction of a large portfolio of cannabis consumer products in a variety of formats under its flagship brands, Alternative Medicine Association (AMA) and Level X. Its product offerings are cultivated at the Company's 68,000 sq. ft. indoor facility and marketed directly to retail dispensaries. AMA branded flower, infused pre-rolls, and in-house boutique concentrates consistently rank as the top products sold in Nevada. For more information, please visit www.1933industries.com
For further information please contact:
Alexia Helgason, VP, Investor Relations
604-728-4407
alexia@1933industries.com
Brian Farrell, Chairman and CEO
brian@1933industries.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com. 1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: 1933 Industries Inc.
