MONTREAL, Nov. 27,
2024 /CNW/ - The Good Shroom Co. Inc. ("Good
Shroom" or the "Company") (TSXV: MUSH), an emerging cannabis
company, is proud to announce its first fully profitable fiscal
year, a rare achievement in its industry. This milestone reflects
the strength of Good Shroom's management and the effectiveness of
its business model.
Highlights of Fiscal Year 2024 (ended July 31, 2024)
Good Shroom demonstrated year-over-year growth across key
financial metrics, underscoring its ability to adapt and thrive in
a challenging industry landscape. Key highlights include:
- Net Revenue (excluding excise taxes): Increased by 23%
to $3.89 million, up from
$3.16 million in FY2023.
- Net Profit: Achieved a net profit of $40,603, a remarkable turnaround from a net
loss of $(452,140) in
FY2023.
- Gross Margin: Expanded to 26.4%, compared to
16.4% the previous year, driven by higher-margin product
diversification and cost efficiencies.
- EBITDA: Reached $116,826, reflecting disciplined cost
management and operational improvements.
- Long-Term Debt: The Company continues to operate without
any long-term debt ($0).
"Achieving profitability in an industry as challenging as ours
is an accomplishment we take pride in," said Eric Ronsse, CEO of The Good Shroom Co Inc.
"While this milestone reflects the strength of our asset-light
business model and financial discipline, our focus remains firmly
on the future—continuing to innovate, expand, and deliver lasting
value."
Expansion Strategy and Plans for 2025
Good Shroom is advancing a dual-focused strategy that includes
maximizing local opportunities in Quebec while driving national growth through
innovation.
- Quebec Market: The Company remains focused on expanding
its position in Quebec, where two
annual product calls by the provincial cannabis regulator determine
opportunities for portfolio expansion. Good Shroom has consistently
performed well in aligning its offerings with demand, though growth
is influenced by the regulator's selective focus on certain
categories. New product launches are anticipated in early Q3 2025,
pending approval, further bolstering its presence in the
province.
- National Growth: Outside Quebec, Good Shroom is pursuing
a strategy rooted in innovative products designed for broad
consumer appeal. The THC-infused DYP pouches, which sold out
within 24 hours of launching in Alberta, represent a key pillar of this
approach. Re-orders are already occurring, and true sales velocity
will be evaluated by Q2 2025. The Company plans to launch a similar
product in Ontario, Canada's
largest cannabis market, in late Q2 2025, and is participating in
product calls in select provinces to make its innovative offerings
available in more provinces.
About The Good Shroom Co. Inc.
The Good Shroom Co. Inc. is one of the rare emerging cannabis
companies that is profitable. The Company primarily operates in
Quebec's cannabis market while
pursuing a national expansion strategy rooted in innovation. In
addition to its cannabis offerings, Good Shroom also produces a
line of non-cannabis wellness beverages designed to meet evolving
consumer demands.
Website
www.thegoodshroom.co
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
Cautionary Note Regarding Forward-Looking
Information
This press release contains statements which constitute
"forward-looking statements" and "forward-looking information"
within the meaning of applicable securities laws, including
statements regarding the plans, intentions, beliefs and current
expectations of the Corporation with respect to future business
activities and sales, including the anticipated orders to be placed
by the SQDC and other provinces. Forward-looking statements are
often identified by the words "may", "would", "could", "should",
"will", "intend", "plan", "anticipate", "believe", "estimate",
"expect" or similar expressions. Investors are cautioned that
forward-looking statements are not based on historical facts but
instead reflect the Corporation's expectations, estimates or
projections concerning future results or events based on the
opinions, assumptions and estimates of management considered
reasonable at the date the statements are made. Although the
Corporation believes that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties, and undue reliance should not be placed
thereon, as unknown or unpredictable factors could have material
adverse effects on future results, performance or achievements.
Among the key factors that could cause actual results to differ
materially from those projected are the following: market
acceptance of the Company's hash and other cannabis products,
changes in the vendor's business or strategy, changes in our
supplier's operations and pricing, expectations regarding
competition and their pricing strategy; maintaining in good
standing all necessary regulatory licenses and authorizations for
its products; the benefits, safety, efficacy, dosing and social
acceptance of cannabis related products and no material changes in
the legal environment; changes in applicable laws and
regulations compliance with extensive government regulation;
operational risks related to and COVID-19 or other pandemic and
supply chain disruptions and shortages. Should one or more of
these risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements prove incorrect, actual
results may vary materially from those described herein as
intended, planned, anticipated, believed, estimated or expected.
Although the Company has attempted to identify important risks,
uncertainties and factors which could cause actual results to
differ materially, there may be others that cause results not to be
as anticipated, estimated or intended and such changes could be
material. The Company does not intend, and do not assume any
obligation, to update the forward-looking statements except as
otherwise required by applicable law. Trading in the
securities of the Company should be considered highly
speculative.
SOURCE Good Shroom Co Inc. (The)