Canadian cannabis company The Good Shroom Co. (TSXV: MUSH) reported its financials for its fiscal third quarter ending April 30, noting a fifth straight period of profitability.
The Montreal-based firm posted gross revenue of C$1.14 million (US$860,000). Net profit came in at C$30,840, more than doubling from C$13,660 in the year-ago period despite a slight year-over-year revenue decline.
For the nine-month period, Good Shroom swung to a profit of C$174,417 from a loss of C$254,666 a year earlier.
In a statement, CEO Eric Ronsse attributed the results to “strategic focus and disciplined execution.” The company has navigated challenges specific to its home province of Quebec, where new product introductions are limited to twice yearly cycles.
“Additionally, we have a strategy for the rest of Canada and beyond, currently being developed,” Ronsse said. “We are happy with our current market position as there are opportunities that lie ahead.”
Cannabis products dominated the revenue mix, accounting for 96% of sales. Notably, a single customer represented 90% of quarterly revenue, exposing the company to concentration risk.
Good Shroom is pursuing growth beyond Quebec, with plans to launch THC-infused pouches in Alberta by early 2025. The expansion strategy comes as the broader Canadian cannabis industry grapples with oversupply and pricing pressures.
The company’s working capital position improved to C$658,129 from C$453,038 at the end of the previous fiscal year. It also cleared its balance sheet of a C$40,000 government loan, benefiting from C$20,000 in forgiveness.
Despite the positive quarter, Good Shroom noted in its regulatory filings ongoing concerns about its ability to meet all of its financial obligations.
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