Decibel Cannabis shares jumped Thursday morning after the company raised its outlook for the year following better-than-expected performance in the second quarter.
Shares rose 8.7% higher to 13 Canadian cents (9 U.S. cents).
The cannabis company now expects revenue in the range of C$132 million to C$137 million, up from C$130 million to C$135 million it previously guided for.
The company also increased its expectations for adjusted earnings before interest, taxes, depreciation and amortization. Decibel expects C$28 million to C$32 million, up C$1 million at each end.
Revenue surged by 19% to C$35.6 million, topping its own expectations for the quarter, which was for revenue of C$33 million to C$35 million. Analysts expected C$34.3 million.
The rise came on the back of strong international sales, which were C$10.6 million, 72% higher than a year ago, streamlined German import approvals cleared bottlenecks and accelerated order fulfillment. It noted that it expects growth to continue to accelerate throughout the year as it turns its backlog into revenue.
On the domestic from, the company logged a 6% growth in sales, due largely to refreshed product lines.
Adjusted Ebitda rose 24% to C$7.8 million, ahead of the C$7.6 million expected by analysts.
Net income rose to C$4.2 million from C$1.6 million, which on a per share basis was profit of C$0.01 compared with breakeven a year earlier.
Adjusted earnings were C$0.01, in line with forecasts.
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