Entourage Well being Studies Sturdy Third Quarter 2024 Monetary Outcomes By Investing.com

• The Firm achieved a complete income of $13.6 million.
• Gross Revenue Margins proceed to display a stable efficiency with 30% progress year-over-year.
• SG&A achieves a major discount, reflecting the Firm’s notable 32% lower year-over-year.
• EBITDA improves by 70% for the quarter and 65% year-over-year, reflecting progress towards profitability.
• Administration will host a convention name on November 29, 2024, at 10 a.m. Jap Time.

TORONTO, Nov. 29, 2024 (GLOBE NEWSWIRE) — Entourage Well being Corp. (TSX-V:ENTG) (OTCQX:ETRGF) (FSE:4WE) (Entourage or the Firm), a Canadian producer and distributor of award-winning hashish merchandise, introduced as we speak its monetary outcomes for the three and 9 months ended September 30, 2024. The Firm will host a convention name to debate its monetary and enterprise highlights on November 29, 2024, at 10 a.m. Jap Time.

Over the previous yr, we have targeted on creating merchandise that actually meet the wants of our prospects and sufferers,” said George Scorsis, CEO and Chair of Entourage. “With the vacations approaching, we’re excited to introduce a number of extremely anticipated merchandise, demonstrating our dedication to delivering significant and well timed choices. Because the hashish {industry} stabilizes, our workforce’s creativity and operational concentrate on optimizing the enterprise will place us as a market chief. We sit up for the yr forward with a powerful product pipeline deliberate for 2025.

Abstract of Outcomes

Web income and EBITDA usually are not acknowledged measurements below Worldwide Monetary Reporting Requirements (IFRS), and this knowledge is probably not corresponding to knowledge introduced by different corporations. Administration defines internet income as income (i.e., gross income much less reductions and buyer incentives however inclusive of freight) much less excise taxes. Administration defines EBITDA as earnings adjusted to exclude curiosity, tax, depreciation, inventory compensation, truthful worth modifications and different non-cash objects, and non-recurring objects. This knowledge is furnished to supply further data and doesn’t have any standardized which means prescribed by IFRS. The Firm makes use of these non-IFRS measures to supply shareholders and others with supplemental measures of its working efficiency. The Firm additionally believes that securities analysts, traders, and different events continuously use non-IFRS measures in evaluating corporations, a lot of which current related metrics when reporting their outcomes. As different corporations might calculate Web Income and EBITDA in a different way than the Firm, these metrics is probably not corresponding to equally titled measures reported by different corporations. We warning readers that EBITDA shouldn’t be substituted for figuring out internet loss as an indicator of working outcomes or as an alternative to money flows from working and investing actions. See the Firm administration’s dialogue and evaluation for the three and 9 months ended September 30, 2024 (the Q3 2024 MD&A), for an in depth reconciliation of adjusted EBITDA to internet earnings/(loss). The Firm’s monetary statements for the three and 9 months ended September 30, 2024, and the Q3 2024 MD&A can be found on SEDAR+ at www.sedarplus.ca.

Gross sales and Income Highlights

Income Highlights    

Our enhance in internet income for Q3 displays the success of our strategic shift into completely different markets, permitting us to diversify and faucet into new alternatives, mentioned Vaani Maharaj, Chief Monetary Officer of Entourage. Whereas the adult-use and medical segments confronted shifts in market dynamics, initiatives just like the launch of our Dime Bag worth model are serving to us tackle evolving shopper wants and develop into new segments. These efforts display our adaptability and dedication to progress in a aggressive {industry}.

Third Quarter 2024 Monetary Highlights

• For the three months ended September 30, 2024, Entourage recorded whole income of $13.6 million in comparison with $12.3 million for a similar quarter that ended September 30, 2023, representing an 11% enhance year-over-year.
• The Firm reported a gross revenue earlier than modifications in truthful worth of $2.9 million for the three months ended September 30, 2024, in comparison with $2.4 million for a similar interval in 2023. This progress was pushed by elevated operational efficiencies from developments in pre-roll automation, product combine optimization, and packaging enhancements.
• In Q3 2024, gross margins rose to 30%, an incremental enchancment from the 27% recorded in Q3 2023. This enhancement is primarily as a result of elevated automation in producing completed and semi-finished items, which lowered direct labour prices and improved margins in comparison with final yr.
• For the three months ended September 30, 2024, the price of items offered (“COGS”) elevated by 5% to $6.7 million in comparison with the identical interval in 2023, primarily as a result of a major lower in provision allowances and write-downs within the prior yr. For the 9 months ended September 30, 2024, COGS decreased by 5% to $22.1 million in comparison with the prior yr, reflecting improved price administration over the year-to-date interval.
• Promoting, common, and administrative (SG&A) bills within the three months ended September 30, 2024, decreased by $2.0 million or 32% in comparison with the identical interval in 2023, primarily attributed to the conclusion of financial savings from discontinued and restructuring actions consummated throughout 2023.
• For the three and 9 months ended September 30, 2024, EBITDA elevated by 70% to $(1.0) million and 65% to $(3.7) million in comparison with the identical intervals in 2023. These enhancements had been primarily pushed by a discount in SG&A bills and COGS in the course of the 9 months.

Company Highlights Throughout and Subsequent to Third Quarter 2024

Enterprise Milestones

• The Firm introduced in August that it was in breach of sure monetary covenants and different obligations below every of its Senior Credit score Settlement and Subordinated Credit score agreements with an affiliate of the LiUNA Pension Fund of Central and Jap Canada (LPF). The Firm is working collaboratively with LPF to agree on amended debt phrases. As a optimistic step ahead, the Firm acquired renewed forbearance letters dated August 2, 2024, October 8, 2024, October 31, 2024, and November 28, 2024, respectively, waiving the Firm’s breaches till October 8, 2024, October 31, 2024, November 28, 2024, and January 15, 2025, topic to the satisfaction or waiver of sure situations.
• The Firm introduced in October that it had signed an modification (the “Amendment“) to its senior secured amended and restated credit score facility entered into on January 31, 2023 (the “Credit Facility“) with an affiliate of LPF. The Modification gives a rise to the Credit score Facility by an addition of roughly $2,500,000 (which funds had been superior to the Firm in a single draw). No additional modifications had been made in respect of the Credit score Facility.

Business & Operational Highlights

• Entourage considerably enhanced its pre-roll manufacturing capabilities, producing over 2 million pre-rolls per thirty days.
• Entourage carried out strategic initiatives to drive effectivity, scale back prices, and strengthen operations. These embrace optimizing useful resource allocation, streamlining processes by means of superior techniques, and enhancing planning and coordination throughout essential features.
• The Firm has expanded its adult-use portfolio with 23 new SKUs throughout Colour Hashish, Dime Bag, and Saturday in key markets, together with Ontario, British Columbia, and Alberta.
• Colour Hashish continued its legacy of distinctive cultivars with the introduction of ˜Luminous Lime,’ ˜Jazzberry,’ and ˜Almond Cloud’. These new choices construct on the model legacy of crafting strains that resonate with customers, mixing flavour profiles with premium genetics.

• Saturday Hashish has launched new infused pre-roll choices with the ˜Raspberry Iced 1g Blunt,’ strengthening the model’s popularity for innovation within the infused hashish section.

• Dime Bag stood out with the launch of its ˜Pocket Rocket’ infused pre-rolls in Ontario, that includes 5 SKUs with distinctive flavours like ˜Wildcat Serum’ and ˜Hazelnut Unfold’. Moreover, Dime Bag drove distribution good points with 2,000 new retail placements and led the Entourage portfolio in adult-use progress, delivering $2.5 million in incremental income year-over-year in Q3 2024.

• Entourage will develop its portfolio in early 2025 with new cultivars and codecs, together with ˜Chromatica’ (10 x 0.35g and 7g), ˜Bitter Grapefruit Haze Reside Resin’ infused pre-rolls (3 x 0.5g), a 20-pack Mega Pack (20 x 0.5g pre-rolls), and two new Pocket Puff flavours: ˜Citrus Burst’ and ˜Minty Melon.’

Because the yr ends, the Firm is concentrated on ending sturdy and getting ready for the brand new yr. The dedication of the workforce and the continued demand for our merchandise have positioned Entourage to stay a pacesetter within the hashish {industry}. Entourage is optimistic in regards to the alternatives forward and is dedicated to delivering worth and progress because the Firm positions itself for 2025.

Convention Name Particulars:

A convention name will likely be hosted by Mr. Scorsis and Ms. Maharaj, with administration accessible for questions following opening remarks as follows:

About Entourage Well being Corp.  

Entourage Well being Corp. is the publicly traded father or mother firm of Entourage Manufacturers Corp., a licence holder producing and distributing hashish merchandise for the medical and adult-use markets. The Firm owns and operates a completely licensed 26,000 sq. ft. Aylmer, ON processing facility. With its Starseed Medicinal medical-centric model, Entourage has expanded its multi-channelled distribution technique. Starseed’s industry-first, unique partnership with LiUNA, the most important development union in Canada, together with employers and union teams, enhances Entourage’s direct gross sales to medical sufferers. Entourage’s elite adult-use product portfolio contains Colour Hashish, Saturday Hashish “ and now Dime Bag and Syndicate “ offered throughout eight provincial distribution companies. Entourage is the unique Canadian producer and distributor of award-winning U.S.-based wellness model Mary’s Medicinals, offered in each medical and adult-use channels.

Comply with Entourage and its manufacturers on LinkedIn  
Instagram:  Colour Hashish, Saturday Hashish, Starseed, Syndicate, Dime Bag

For extra data or investor or media inquiries:
Catherine Flaman
Senior Director, Communications & Company Affairs
416-910-0279
catherine.flaman@entouragecorp.com

Ahead Trying Data

This press launch comprises “forward-looking information” throughout the which means of relevant Canadian securities laws that are primarily based upon Entourage’s present inner expectations, estimates, projections, assumptions and beliefs and views of future occasions. Ahead-looking data could be recognized utilizing forward-looking terminology corresponding to “expect,” “likely,” “may,” “will,” “should,” “intend,” “anticipate,” “potential,” “proposed,” “estimate” and different related phrases, together with unfavorable and grammatical variations thereof, or statements that sure occasions or situations “may,” “would” or “will” occur, or by discussions of technique.

The forward-looking data on this information launch is predicated upon the expectations, estimates, projections, assumptions, and views of future occasions which administration believes to be affordable within the circumstances. Ahead-looking data contains estimates, plans, expectations, opinions, forecasts, projections, targets, steering, or different statements that aren’t statements of reality. Ahead-looking data essentially contain identified and unknown dangers, together with, with out limitation, dangers related to the Firm’s potential to pay quantities owing below the Credit score Facility and its different debt agreements; the Firm being unable to fulfill the situations within the forbearance letter; the long run actions and co-operation of the Firm’s lenders; common financial situations; antagonistic {industry} occasions; lack of markets; future legislative and regulatory developments; lack of ability to entry ample capital from inner and exterior sources, and/or lack of ability to entry ample capital on beneficial phrases; the hashish {industry} in Canada typically; the power of Entourage to implement its enterprise methods; competitors; crop failure; and different dangers.

Any forward-looking data speaks solely as of the date on which it’s made, and, besides as required by legislation, Entourage doesn’t undertake any obligation to replace or revise any forward-looking data, whether or not because of new data, future occasions or in any other case. New elements emerge every so often, and it’s not attainable for Entourage to foretell all such elements. When contemplating this forward-looking data, readers ought to take into accout the danger elements and different cautionary statements in Entourage’s disclosure paperwork filed with the relevant Canadian securities’ regulatory authorities on SEDAR+ at www.sedarplus.ca  The danger elements and different elements famous within the disclosure paperwork might trigger precise occasions or outcomes to vary materially from these described in any forward-looking data.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Supply: Entourage Well being Corp.