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Entourage Health Reports First Quarter 2024 Financial Results: Achieves $16.4 Million in Total Revenue and Marks First EBITDA-Positive Quarter

TORONTO, May 28, 2024 (GLOBE NEWSWIRE) — Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) (FSE:4WE) (“Entourage” or the “Company”), a Canadian producer and distributor of award-winning cannabis products, today announced its financial results for the three months ended March 31, 2024. The Company reported total revenue of $16.4 million (net revenue of $12.7 million, before excise duties and discounts), up 9% year-over-year. The Company will host a conference call to discuss its financial and business highlights on Tuesday, May 28, 2024, at 10:00 a.m. Eastern Time.

“Entourage’s first quarter results are a testament to our robust financial health and strategic approach to business operations, positioning us for success throughout 2024,” said George Scorsis, Chair and CEO. “With defined infrastructure and supply agreements in place, we are well-positioned to continue delivering the accelerated growth we have already seen develop in Q1. Our team’s relentless focus on efficient execution has led to a solid performance, reflected in improved profitability and a significant increase in EBITDA, marking the first positive quarter. We are also seeing substantial growth in our adult-use business as we continue to announce and launch a range of innovative products across Canada set to generate ongoing interest and excitement among consumers.”

Summary of Results

For the Quarter-Ended   March 31, 2024 March 31, 2023
    ($000’s) ($000’s)
Total revenue   16,418 15,107
*Net revenue (less Excise Tax)   12,701 11,834
Gross profit before changes in fair value   5,775 3,002
Gross margin % before changes in fair value   45% 25%
Loss and comprehensive loss   (6,292) (9,516)
EBITDA**   533 (3,884)
       
As at   March 31, 2024 March 31, 2023
    ($000’s) ($000’s)
Cash and cash equivalents   9,370 11,254
Inventory   10,925 10,010
Biological assets  
Working capital   (152,919) (146,909)

*Net revenue defined as revenue (i.e., gross revenue less discounts and customer incentives but inclusive of freight) less excise taxes
** EBITDA is not a recognized measurement under International Financial Reporting Standards (IFRS), and this data may not be comparable to data presented by other companies. Management defines EBITDA as adjusted to exclude interest, tax, depreciation, stock compensation, fair value changes and other non-cash items, and non-recurring items. This data is furnished to provide additional information and does not have any standardized meaning prescribed by IFRS. The Company uses this non-IFRS measure to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors, and other interested parties frequently use this non-IFRS measure in evaluating companies, many of which present similar metrics when reporting their results. As other companies may calculate EBITDA differently than the Company, this metric may not be comparable to similarly titled measures reported by other companies. We caution readers that EBITDA should not be substituted for determining net loss as an indicator of operating results or as a substitute for cash flows from operating and investing activities. See the Company management’s discussion and analysis for the three months ended March 31, 2024 (the “Q1 2024 MD&A”), for a detailed reconciliation of adjusted EBITDA to net income/(loss). The Company’s financial statements for the three months ended March 31, 2024, and the Q1 2024 MD&A are available on SEDAR+ at www.sedarplus.ca.

“Entourage delivered significant growth in the first quarter of 2024, driven by increased revenues and robust operating discipline, resulting in an impressive 92% increase in gross profit,” said Vaani Maharaj, CFO. “Entourage is now perfectly positioned to seize a broad spectrum of opportunities, driving value through significant revenue growth, enhanced operating efficiencies, and improved margins. We are committed to investing in our future and accelerating our vision for the Company, setting a powerful foundation for the rest of the year.”

Revenue Highlights

    Q1 2024 Q1 2023 Change
YOY
    ($000’s) ($000’s) %
Net Revenue by Channel        
Medical   5,752 5,973 (4%)
Adult-Use   6,465 5,861 10%
Bulk   483 100%
Total Net Revenue   12,701 11,834 7%


Financial Highlights

Corporate Highlights During and After the First Quarter of 2024

Commercial Highlights

Conference Call Details
A conference call will be hosted by Mr. Scorsis and Ms. Maharaj, with management available for questions following opening remarks:

Date: Tuesday, May 28, 2024
Time: 10 a.m. Eastern Time
Dial-in Number: Canada/USA: 1-844-763-8274 International Toll: 1-647-484-8814
Participants, please dial in and ask to join the Entourage call.
Replay Dial-in: Canada/USA: 1-855-669-9658 
Replay Access Code: 0899 
Available after 12:00 p.m. Eastern Time until June 28, 2024

Source data: Buddi Retail Data, as of March 31, 2024.

About Entourage Health Corp. 

Entourage Health Corp. is the publicly traded parent Company of Entourage Brands Corp., a licence holder producing and distributing cannabis products for the medical and adult-use markets. The Company owns and operates a fully licensed 26,000 sq. ft. Aylmer, ON processing facility. With its Starseed Medicinal medical-centric brand, Entourage has expanded its multi-channelled distribution strategy. Starseed’s industry-first, exclusive partnership with LiUNA, the largest construction union in Canada, along with employers and union groups, complements Entourage’s direct sales to medical patients. Entourage’s elite adult-use product portfolio includes Color Cannabis, Saturday Cannabis – and now Dime Bag and Syndicate – sold across eight provincial distribution agencies. Exclusive Canadian producer and distributor of award-winning U.S.-based wellness brand Mary’s Medicinals, sold in both medical and adult-use channels. In addition, Entourage also entered into an exclusive agreement with Irwin Naturals, a renowned nutraceutical and herbal supplement formulator of branded wellness products sold across North America. 

Follow Entourage and its brands on:

LinkedIn 

Instagram:
Color Cannabis, Saturday Cannabis, Starseed & Syndicate

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

Forward Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon Entourage’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified using forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy.

The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions, and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of fact. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of Entourage to implement its business strategies; the COVID-19 pandemic; competition; crop failure; and other risks.

Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, Entourage does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Entourage to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in Entourage’s disclosure documents filed with the applicable Canadian securities’ regulatory authorities on SEDAR+ at www.sedarplus.ca. The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.

Third Party Information

This press release includes market and industry data that has been obtained from third party sources, including industry publications. The Company believes that the industry data is accurate and that its estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, the Company has not independently verified any of the data from third party sources referred to in this press release or ascertained the underlying economic assumptions relied upon by such sources.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 


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