Herbal Dispatch sees 120% revenue growth as export sales surge

Herbal Dispatch Inc. (CSE: HERB) reported a 120% increase in quarterly revenue, driven by expanding international export operations and growing domestic recreational sales.

The Vancouver-based company generated gross revenue of C$3.3 million in the third quarter ending Sept. 30, up from C$1.5 million a year earlier, according to financial results released Wednesday. Year-to-date revenue reached C$9.2 million, marking a 183% increase from the same period in 2023.

Export sales grew significantly to C$786,868 in the third quarter and C$2.6 million year-to-date, versus C$364,700 in the first nine months of 2023, as the company expanded relationships in markets like Australia and Portugal.

“We are focused on developing new profitable sales channels and efficiently scaling our operations,” CEO Philip Campbell said in a statement. The company wants to further grow exports while expanding domestic sales across Canada.

Herbal Dispatch achieved positive adjusted EBITDA of C$7,143 during the period, which was the third quarter of positive results in the past four periods. Net loss improved to C$388,156 from C$533,040 a year earlier.

The company recently expanded its direct delivery service to Saskatchewan dispensaries in September, building on its British Columbia operations. Its new “Happy Hour” brand of competitively priced cannabis products, including pre-rolls and vapes, has “continually gained traction” since launching earlier this year, according to a company news release.

Separately, Herbal Dispatch announced plans to amend terms on C$938,000 in convertible debentures held by company directors, extending maturity to January 2026 and reducing the conversion price to C$0.06 per share from C$0.50. The amendments require shareholder approval at the company’s December meeting.