- Decibel Cannabis Company (DBCCF, Financial) reports Q4 2024 net revenue of $25.3 million (+0.4% YoY).
- 2025 guidance includes projected net revenue of $130 million and a plan to expand exports from 7 to 9 markets.
- Acquisition of AgMedica expected to significantly boost 2025 financial performance.
Decibel Cannabis Company (DBCCF) has unveiled its financial results for the fourth quarter and full-year 2024, along with guidance for 2025. For Q4 2024, Decibel reported a net revenue of $25.3 million, marking an increase of 0.4% year-over-year. The company achieved an Adjusted EBITDA of $5.2 million, which represents a 4% increase compared to the same quarter last year. A significant contributor to the revenue boost was the acquisition of AgMedica, which added $3.4 million to the net revenue during Q4 2024.
Looking forward to 2025, Decibel forecasts a net revenue of $130 million, an Adjusted EBITDA of $25 million, and an Adjusted Free Cash Flow of $20 million. With plans to enhance its international footprint, Decibel aims to expand its export reach from 7 to 9 markets, with AgMedica projected to contribute $30 million in net revenue and $4 million in EBITDA next year.
The fourth quarter highlights also include impressive international sales of $3.4 million, a substantial 141% year-over-year increase, largely driven by AgMedica's contribution of $2.1 million. The company's gross margin improved to 49%, up from 46% in the previous year, and it recorded a Free Cash Flow of $2.2 million, an 18% increase year-over-year.
Despite a decrease in net Canadian recreational sales to $21.9 million, down 8% due to stiff competition, Decibel remains optimistic. The company is proactively launching new products and marketing campaigns to stabilize and grow its market share in the sector.
Decibel acknowledges that Q1 2025 might experience a slight dip due to the timing of international shipments, but anticipates robust growth commencing from Q2 2025 as global sales gather momentum.
