Cantourage Group’s Q3 Report: Strong Revenue Growth, Strategic Developments and Market Changes

November 30, 2023 | Business News

Cantourage Group, a leading cannabis distributor listed in Germany, has offered insights into its financial performance for the third quarter of 2023. Reporting significant revenue growth yet a slip back into negative EBITDA, the company analyzes the intricacies of an evolving cannabis market while maintaining a positive outlook for its future trajectory.

In a recent market update, Cantourage Group revealed its Q3 earnings with revenues reaching an impressive €6.1m, a substantial leap from the €3.4m reported in the corresponding period the previous year. This hike in revenue indicates a robust growth trend, with cumulative revenues for the first nine months hitting €17.2m, marking an 85% increase over the €9.3m generated during the same period in 2022.

However, not all was sunny in Cantourage’s financial landscape. The EBITDA for the third quarter fell to a loss of €0.6m, a notable improvement from a €1.2m loss in Q3 the previous year, but still a setback from the positive position earlier in the year. Cantourage’s overall EBITDA for the nine months of 2023 dipped into a loss of €0.4m, following an encouraging €200k in pre-tax profits reported in its interim results.

Cantourage has acknowledged that the deficit was influenced by delays in the approval of new production facilities, among other factors. Despite this, the company continues to project confidence in its financial planning. CFO Bernd Fischer expressed optimism about Cantourage’s business progression, citing the success of significant milestones including the launch of Telecan°, their proprietary online platform for prescription cannabis.

Post-period, the company’s collaboration with Astrasana is highlighted as a particularly momentous decision that is expected to significantly impact the supply of cannabis in Switzerland. These strategic movements reflect a comprehensive approach towards stabilizing and growing Cantourage Group’s market presence in the European cannabis landscape.

Simultaneously, the closure of the Rize Medical Cannabis and Life Sciences UCITS ETF (FLWR), Europe’s last remaining cannabis-focused ETF, underscores a broader industry trend. Set to close in December 2023, FLWR’s termination follows deeper portfolio streamlining by the new management at Rize ETF after its acquisition by Ark Investor. Placed in context with the closure of HANetf’s Medical Cannabis and Wellness UCITS ETF (CBDX), the closure of these ETFs suggests shifts within the investment community regarding cannabis-focused financial products.

Learn more:

1. cantourage.com2. cantourage.com3. eqs-news.com4. pharmiweb.com5. marketscreener.com— see less

SEED Innovations, an AIM-listed cannabis investment company, has also released financial figures covering the six months up to September 30, 2023. The net asset value (NAV) of its portfolio declined from £16m to £14.6m due to negative revaluations of investee companies and market price reductions of its cannabis assets. Despite this, SEED’s CEO Ed McDermott believes the company remains significantly undervalued, with shares trading at a 64% discount to net asset value. With commitments to enhance investor relations and visibility, SEED stays optimistic about correcting this undervaluation in the market.

The financial update from SEED Innovations reflects the challenges and volatility often present in the cannabis investment market. The decline in the net asset value (NAV) from £16m to £14.6m is indicative of the negative revaluations and market price reductions that can affect companies within this sector. However, CEO Ed McDermott’s perspective that the company is undervalued and the shares trading at a 64% discount to net asset value suggests confidence in the company’s potential and future growth.

SEED Innovations’ commitment to enhancing investor relations and visibility is a strategic approach to address the market’s undervaluation. It’s not uncommon for companies to take such measures in hopes of improving their market position and investor perception.

For those interested in the detailed financial reports and statements of SEED Innovations, they can be accessed through the company’s investor centre or financial news outlets¹. It’s always recommended for investors to review these documents to gain a comprehensive understanding of a company’s financial health and market position. Keep in mind that investing in cannabis-related businesses carries inherent risks and potential rewards, and it’s crucial to stay informed about the latest developments in the industry.

Learn more:

1. seedinnovations.co2. a.storyblok.com3. hl.co.uk4. markets.ft.com

Complementing SEED’s affirmation of value, jersey-based Northern Leaf, partly owned by SEED, announced its first commercial shipment of medical cannabis to the UK. This landmark event comes after four years of cultivation and compliance achievements, representing a significant advance for both the company and the European cannabis sector.

The dynamic shifts in the cannabis sector – from Cantourage’s revenue spikes, ETF closures, and strategic partnerships to SEED’s published outcomes and Northern Leaf’s market entry – underline a sector experiencing growth, recalibration, and the continuous search for stable ground in the perpetually evolving green landscape.