Canadian cannabis producer Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) reported Thursday that it saw record sales and profitability in 2024, as it shores up its losses and general liquidity concerns. Its Back Forty brand also exited the year as the top cannabis brand in Canada.

The Toronto-based company reported net revenue of C$122.3 million for 2024, a 21% increase over 2023, according to its fourth quarter and full-year results ending Dec. 31, 2024.

“The Auxly team delivered an outstanding year, driven by our unwavering commitment to innovation, gross margin expansion, and operational excellence,” founder and CEO Hugo Alves said in a statement.

The company’s gross margin on finished cannabis inventory sold improved significantly to 46% in 2024, up from 34% in 2023. Adjusted EBITDA soared to C$26.7 million or 22% of net revenue, a dramatic increase from C$1.5 million in 2023.

The fourth quarter showed even stronger performance, with net revenue of C$34.6 million, up 29% over the same period in 2023. Gross margin for the quarter reached 54%, versus 40% in the prior year’s quarter, and adjusted EBITDA hit C$11 million or 32% of net revenue.

Despite the gains, the company still reported a net loss of C$16.3 million for the full year, though this represents a significant improvement from the C$44.5 million loss reported in 2023. The 2024 loss included C$16 million in deferred tax expenses related to debt conversion.

Auxly reported it had reduced its total debt by 56% in 2024, with the conversion of over C$123 million of debt into shares by Imperial Brands plc and repayment of outstanding debenture facilities.

According to the earnings report, the company held the fourth-largest market share among Canadian LPS at 6% by the end of 2024, and its Back Forty brand maintained the number one position in Canada through March 2025.

The company credited much of its success to product innovation, noting that its Back Forty all-in-one vape was recognized as “Innovation of the Year” at the 2024 KIND awards, and it held the top position nationally in the non-infused pre-roll category.

Auxly emphasized its commitment to profitable growth through “focused innovation, expansion of our distribution footprint and enhanced production efficiency.” The company highlighted plans to defend Back Forty’s leadership position while exploring international expansion opportunities.

The company’s cash position is improving as well, which had been a point of concern. As of Dec. 31, the firm reported cash and equivalents of C$18.4 million, representing an increase of C$2.7 million (or 18%) versus the previous year when it had C$15.6 million. The company also reported positive cash flow from operations of C$3.2 million for the fourth quarter of 2024.