Nevis Brands doubles full-year sales on market expansion, new product launches

Nevis Brands (CSE:NEVI, OTCQB:NEVIF) has reported revenue of $1.56 million for fiscal year 2024, more than doubling its 2023 sales as it expanded into new markets and launched new cannabis products.

The US-focused cannabis company also narrowed its net loss to approximately $362,000 from approximately $400,000 for the previous year, with an even smaller adjusted loss of about $58,000 when excluding interest, depreciation, and amortization.

Nevis said it had maintained a leading position in Washington’s cannabis beverage market and achieved the second-best sales ranking in Missouri within its first year in that state.

During the year, the company significantly reduced its debt, cutting current liabilities from $1.12 million to about $573,000 through debt payments and restructuring.

“We are pleased to conclude our fiscal year, which was the first full year of operating as Nevis Brands,” CEO John Kueber said in a statement. 

“We are pleased to have successfully opened new markets, increased revenues and launched new products, all while increasing cash flow from operations and reducing debt substantially.”

Hemp-derived beverages opportunity

Nevis expects growth in 2025 driven by expanding sales of its Happy Apple and Major brands in the emerging hemp-derived THC beverage sector, as well as a restart in Ohio and Arizona.

“While meaningful results from these initiatives are not reflected in 2024 results, we believe these products will be important to the growth of our revenues in 2025,” Kueber noted.

The company continues to focus on a low-capital expansion strategy through licensing and aims to leverage its established products in key markets.

“In addition to licensing, the company will look to grow on the development of the sales of Happy Apple which generates wholesale revenues that flow 100% to the company,” Kueber added.    

“We have an exciting year ahead that includes more financial flexibility and the ability to focus on territories where we can increase our advantage of having established product already in market.”

Navigating challenges

Kueber noted that Nevis faced a difficult fourth quarter, with a drop in revenue attributed to licensing and market shifts in Arizona, Ohio, Oregon, and California. Growth in New Jersey and Missouri partially offset these declines.

“With continued growth in markets where we are succeeding, hemp-derived products, and a restart in Ohio and Arizona, we expect a return to growth and to previous levels of revenues and beyond in 2025,” Kueber said.