Cannabis NB expects CA$10M profit; privatization update ‘in near future’

Cannabis NB expects CA$10M profit; privatization update ‘in near future’

New Brunswick’s cannabis retail monopoly Cannabis NB expects to end its fiscal year with a profit of over 10 million Canadian dollars ($7.7 million).

“We are excited to have achieved an important milestone — 12 consecutive months of profitability,” Cannabis NB CEO Patrick Parent said in a statement posted on social media and shared with Marijuana Business Daily via email on Friday.

“Our net income to date is CA$6.1 million and we’re forecasting to finish the fiscal year off with a net profit total of over CA$10 million.”

Parent said that represents a CA$14.4 million turnaround from its previous fiscal year, or a 337% improvement.

“Cannabis NB is committed to operating a profitable business that offers a great experience to our customers, and value to all New Brunswickers,” Parent wrote.

Meanwhile, the province still has not announced a decision on whether or not it will privatize the profitable business.

The delayed government review determining whether to privatize cannabis sales resumed  after New Brunswick’s Progressive Conservative party won a majority in a September provincial election.

The provincial government will provide a public update on the status of the review “in the near future,” wrote Jennifer Vienneau, director of communications for New Brunswick’s Finance Treasury Board, in an emailed statement to MJBizDaily.

The province’s RFP notes that it is not necessarily a sale of Cannabis NB, but a sale of the right to operate adult-use cannabis retail, wholesale/distribution and e-commerce on an exclusive basis over a 10-year period, with two five-year renewals.

The province received eight proposals to privatize cannabis retail, including by Canopy Growth, Loblaw and Fire & Flower.

Cannabis NB has posted consecutive positive quarters this year, with a CA$3.3 million profit in the most recent quarter.

August sales of regulated cannabis in New Brunswick totaled CA$6.5 million, or roughly 2.5% of total legal cannabis sales in Canada that month.

Published at Fri, 27 Nov 2020 21:33:24 +0000

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