TORONTO, May 13, 2024 /CNW/ - Auxly Cannabis Group Inc. (TSX:XLY) (OTCQB:CBWTF) ("Auxly" or the "Company") a leading consumer packaged goods company in the cannabis products market, today released its financial results for the three months ended March 31, 2024.  These filings and additional information regarding Auxly are available for review on SEDAR at www.sedar.com. Q1 2024 Highlights and Subsequent Events Auxly achieved its best Q1 in its history across key metrics of revenue, margin and adjusted EBITDA; Record net revenues for a fiscal Q1 of $25.2 million, an increase of 5% compared to the same period in 2023; Achieved Gross Margin on Finished Cannabis Inventory Sold1 of 38% in the quarter, a record for historical Q1 periods; Record Adjusted EBITDA1 for a fiscal Q1 of $2.2 million, an improvement of 1,523% or $2.1 million year-over-year; Continued reductions in SG&A through ongoing efforts to decrease overhead costs, resulting in an 11% decline quarter-over-quarter and a 15% decline compared to the same period in 2023; Further strengthened its balance sheet with the Imperial Brands plc conversion of over $123 million of debt into shares, resulting in 19.8% ownership of the Company and completed the extension of the Auxly Leamington credit facility between its syndicate of lenders led by BMO to December 31, 2025 with an option to extend a further year by making a $2.5 million principal repayment; Maintained its top 10 LP position in Canada by share of market based on total recreational retail sales, securing the #6 LP position with 5% of the total market2; Maintained its leadership position in the competitive vapour category, while continuing to hold the top four all-in-one SKU positions in Ontario3 with its Back Forty all-in-ones for three consecutive months; Back Forty remains the #1 non-infused pre-roll brand in Ontario3, with only seven SKUs currently listed, and has quickly become a consumer favourite brand in dried flower, ranking #6 in national sales after seeing a boost with its recently launched strain, Liquid Imagination; Subsequent to quarter end, the Company expanded its branded product offering to the province of Quebec, with its products now available in all Canadian provinces as well as the Northwest Territories and Yukon. Subsequent to quarter end, the Company introduced its advanced, fully automated for precision, 0.75g three pack pre-rolls under its Back Forty brand. These three packs use Auxly's latest top performing cultivar, Liquid Imagination, that was developed at Auxly Leamington's advanced greenhouse. ___________________________________ 1 Non-IFRS or supplementary financial measure. Refer to the Non-GAAP Measures section in the MD&A for definitions. 2 Hifyre IQ, as of March 2024 3 Ontario Cannabis Store Data, as of March 2024 Financial Highlights and Key Performance Indicators   For the three months ended: March 31, March 31, (000's) 2024 2023 Change % Change Net revenues $               25,241 $                   23,968 $             1,273 5 % Gross margin on finished cannabis inventory sold* 9,569 8,943 626 7 % Gross margin on finished cannabis inventory sold (%)*   38 % 37 % 1 % 3 % Net income/(loss) (26,012) (10,249) (15,763) -154 % Adjusted EBITDA* 2,240 138 2,102 1523 % Weighted average shares outstanding 1,016,839,478 954,014,308 62,825,170 7 % As at: March 31, December 31, (000's) 2024 2023 Change % Change Cash and equivalents $               13,079 $                   15,608 $          (2,529) -16 % Total assets 260,127 261,904 (1,777) -1 % Debt* 66,078 123,579 (57,501) -47 % *Non-IFRS or supplementary financial measure. Refer to the Non-GAAP Measures section for definitions. Hugo Alves, CEO of Auxly, commented: "Following a transformative year for Auxly, we have maintained our positive momentum in the first quarter of 2024 and are continuing to achieve profitable growth. Q1 2024 was the best Q1 in Auxly history across key metrics of revenue, gross margin and adjusted EBITDA.  Our commitment to product quality, innovation and distribution excellence drove our top-line sales growth year over year; and our continued focus on operational efficiency and prudent capital management helped us deliver another quarter of adjusted EBITDA profitability.  This is all thanks to the collective efforts of our talented and dedicated employees, who work hard every day to make quality products that help our consumers live happier lives. As we head into summer, we are excited to offer consumers new and innovative products to enjoy like our new larger Back Forty 0.75g pre-rolls, which will also be available to consumers in Quebec. We look forward to another quarter of sustainable, profitable growth and, as always, we will remain passionately committed to our consumers." Results of Operations (000's) Three months ended:    March 31, 2024   March 31, 2023 Revenues Revenue from sales of cannabis products $        38,357 $     37,544 Excise taxes (13,116) (13,576) Total Net Revenues 25,241 23,968 Cost of Sales Costs of finished cannabis inventory sold   15,672   15,025 Inventory impairment 456 673 Gross profit/(loss) excluding fair value items 9,113 8,270 Unrealized fair value gain / (loss) on biological transformation 2,773 4,247 Realized fair value gain/(loss) on inventory (2,435) (4,639) Gross profit 9,451 7,878 Expenses Selling, general, and administrative expenses 8,621