Adastra Holdings Reports FY2023 Results; Marking Third Consecutive Year of Record Revenue

LANGLEY, BC / ACCESSWIRE / April 23, 2024 / Adastra Holdings Ltd. (CSE:XTRX)(FRA:D2EP) ("Adastra" or the "Company"), a leading cannabis processor and producer of two top Canadian concentrates brands, with a focus on product innovation and commercialization for adult-use and medical markets, is pleased to report financial results for the fourth quarter of 2023 ("Q4 2023") and the year ended December 31, 2023 ("FY2023"). All currency amounts are listed in Canadian dollars.

"During 2023, Adastra experienced significant sales growth of $37.7 million, representing a 108% increase compared to the same period last year, and marking our third consecutive year of achieving record revenue. The increased demand for our in-house brand, Endgame Extracts, has been a key driver behind this success, evident in our continued success with numerous best-selling SKUs in B.C, Alberta, and Ontario according to Headset. None of this would have been possible without our dedicated team. They have continuously worked hard to increase the production throughput of the Company's facility in Langley to keep up with the growing demand," said Lachlan McLeod, Interim CEO of Adastra. "Looking ahead to 2024, we expect to continue this momentum and have already set new records, including receiving a record single purchase order of $1 million in March 2024. Moreover, we're committed to a renewed focus on cost-saving measures aimed at ensuring profitability. As we continue to grow, we aim to further strengthen our financial position and drive sustainable success."

Key FY2023 Financial Highlights

• Record gross revenues of $37.7M for FY2023 compared to $18.1M for fiscal 2022 ("FY2022"), representing a 108% increase, due to increased demand for the Company's in-house brand Endgame Extracts ("Endgame") and increased throughput of the Company's facility in Langley, BC (the "Langley Facility").
• Record gross profit of $7.6M for FY2023, representing a 24% increase compared to 6.1M in FY2022.
• Loss from operations of $1.8M for FY2023 compared to $0.8M for FY2022, an increase of 124% from FY2022, due to the Company's increased spending on marketing initiatives in FY2023 to increase brand awareness of the suite of products under the Endgame Extracts brand.
• Record cash provided by operating activities of $1.9M in FY2023 compared to $0.9M in FY2022 as the Company closely managed cash flows during the year.

Key Q4 2023 Financial Highlights