Rubicon Organics Inc (FRA:R07)
€ 0.24 -0.01 (-4%) Market Cap: 13.63 Mil Enterprise Value: 14.57 Mil PE Ratio: 0 PB Ratio: 0.55 GF Score: 37/100
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Q2 2024 Rubicon Organics Inc Earnings Call Transcript

Aug 15, 2024 / 02:00PM GMT
Release Date Price: €0.304 (-0.65%)

Key Points

Positve
  • Rubicon Organics Inc (ROMJF) achieved a historic high in net revenue for Q2 2024, totaling $12.1 million.
  • The company returned to positive adjusted EBITDA and operating cash flow following a subdued Q1.
  • Rubicon Organics Inc (ROMJF) maintained its number-one premium market position in Canada across all categories.
  • The company captured 30% of the premium edibles market within a year of launch.
  • Rubicon Organics Inc (ROMJF) achieved 40% national distribution for its vapes in just two months since launch.
Negative
  • Gross margin decreased to 30% in Q2 2024 due to market trends such as price compression and a shift towards lower-priced larger formats.
  • The ERP implementation project has depressed adjusted EBITDA for both quarters in 2024.
  • 1964 brand faced tough market conditions and pricing pressures, leading to mixed performance.
  • Investments in ERP and other projects have impacted cash flow and profitability in the short term.
  • The company is facing ongoing price pressures and adverse product mix shifts towards lower-margin categories.
Operator

Good morning, ladies and gentlemen, and welcome to Rubicon Organics Q2 earnings conference call. (Operator Instructions) This call is being recorded on Thursday, August 15, 2024.

I would now like to turn the conference over to Margaret Brody. Please go ahead.

Margaret Brodie
Rubicon Organics Inc - Chief Executive Officer, Director

Thank you, and good morning, everyone. Today, I'll provide an update on Rubicon Organics and the performance in Q2 '24, highlighting our progress as the premium leader in Canadian cannabis and discuss our growth and unique opportunities for 2024 and beyond.

Rubicon has achieved another robust quarter, recording a historic high in net revenue and marking a return to positive adjusted EBITDA and operating cash flow following a subdued Q1. As the leading premium licensed producers, Rubicon continues to hold a strong market share in premium flower and pre-rolls, premium edibles and the topical market. We anticipate further growth in 2024, supported by our successful late launch of two SKUs in May with a further genetic

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