$DXBRF - Dixie Brands announces fiscal 2018 financial results
DENVER, May 1, 2019 /CNW/ - Dixie Brands Inc. ("Dixie" or "the Company") (CSE: DIXI.U), (OTC: DXBRF), (Frankfurt: 0QV), one of the cannabis industry's leading consumer packaged goods (CPG) companies, has announced its financial results for the year ended December 31, 2018. All figures are stated in U.S. dollars.
"The financing and public listing we completed in the final weeks of 2018 set the stage for a breakout year in 2019," said Chuck Smith, President and CEO, Dixie Brands. "Dixie accomplished a lot as a private company, building up an industry-leading portfolio of more than 100 commercialized products. We are very excited by our opportunities to invest our capital into strengthening our distribution network and market presence to accelerate our growth."
Fiscal 2018 Financial Highlights
Revenue was $5,791,451 in fiscal 2018, an increase of 73% from $3,339,387 of revenue in 2017. Revenue was $1,586,282 in the fourth quarter of 2018, compared to $709,677 a year earlier, an increase of 123%. In both periods, increased revenue was driven by our growth in Colorado, Nevada and Maryland as well as our relaunch in California. Both existing and newly developed products contributed to the growth.Gross profit of $3,017,902 in 2018 was up 92% from $1,575,610 a year earlier. As a percentage of revenue, gross profit margin increased to 52% from 47% in 2017, as a result of improved productivity and increasing sales in our higher margin product lines.Net loss attributable to the Company was $21,238,351 in 2018, compared to $4,339,938 the previous year. The increased loss was associated in large part with a significant increase in operating and other expenses which were primarily incurred in association with the Company's financing, reverse takeover and public listing activities, including $16,013,297 of non-cash expenses in accordance with International Financial Reporting Standards.Dixie had $18,361,000 of cash at December 31, 2018, compared to $44,000 at December 31, 2017. The higher cash balance reflected the receipt of gross proceeds of $25 millionfrom an oversubscribed, non-brokered private placement completed on October 1.Dixie completed a reverse takeover of Academy Explorations Limited on November 27 and began trading on the Canadian Securities Exchange on November 29.
