Nevis Brands Reports Q2 2025 Results: Revenue Growth, Stable Gross Margin
(TheNewswire)
July 14, 2025 – TheNewswire -Seattle, WA – Nevis Brands Inc.(CSE: NEVI | OTCQB: NEVIF | FSE: 8DZ) (“Nevis” or the“Company”), a leading innovator in the cannabis beverage industry,today announced its financial results for the second fiscal quarterended May 31, 2025. Unless otherwise noted, all figures are inCanadian dollars.
Q2 2025 Financial Highlights
Revenue: $418,745 (VS Q1: $416,355)
Gross Profit: $315,228 (VS Q1: $315,345)
Net Loss: $(92,458) (VS Q1 Net Income:$60,430)
EBITDA: $-16,226 (VS Q1: $135,038)
The Company posted a modest increase in revenue thisquarter VS Q1, driven by stable revenues it its licensed markets andthe early performance of its hemp-derived THC product line. At 75%,Gross Profit remained stable quarter-over-quarter, reflecting thestrength of Nevis' capital-light licensing model, which allows theCompany to generate high margins with relatively low overhead.
While revenue and margin performance were steady, thequarter's earnings were impacted by two non-operational factors: (1)Foreign exchange pressure from the depreciation of the U.S. dollar,which reduced earnings by more than $80,000 on a consolidated basisand
(2) Elevated audit and accounting fees tied to theappointment of a new auditor and the completion of the Company’s FY2024 audit.
“Although our Q2 bottom-line results reflect theimpact of currency effects, we remain confident in the health of ourcore business,” said John Kueber, CEO of Nevis Brands. “Ouroperating model continues to generate attractive gross margins, andour expanding product portfolio is opening up new, scalable revenuestreams. We're building a solid foundation for long-term, profitablegrowth.”
Q2 Operational Highlights
Geographic Expansion and Core Market Stability: Neviscontinued to experience revenue growth from new market entries in NewJersey and Missouri, where the Company’s flagship brands Major™and Happy Apple™ are gaining traction. Meanwhile, core legacymarkets — including Washington, Colorado, and Oregon —demonstrated stable performance, contributing to a dependable revenuebase from mature channels.
Launch of Hemp-Derived THC Beverage: The Companyrecorded its first quarterly revenue from the Happy Apple™hemp-derived THC drink, launched in early 2025. Initial consumerfeedback has been positive, with the product’s approachable formatand high brand equity resonating particularly well in emergingnon-dispensary retail environments. Nevis anticipates meaningful salesacceleration from this product line in the second half of fiscal 2025,as distribution scales and awareness builds.
Licensing Model Efficiency: Nevis’ gross margin of75% continues to validate its asset-light strategy. By licensing IPand manufacturing relationships rather than owning productioninfrastructure, the Company maintains low fixed costs whileparticipating in the upside of multiple regional markets. Thisapproach also allows Nevis to quickly adapt to regulatory changes andshifts in consumer preferences.
Strategic Outlook
As the cannabis beverage category matures and consumeradoption grows, Nevis is positioned to capitalize on multiple growthdrivers:
Brand-Driven Market Expansion: With strong brand equityand a loyal customer base, Major™ and Happy Apple™ are poised forwider national distribution through additional distributor agreements.New distribution partnerships are currently under review and expectedto close in the coming months.
Cost Discipline and EBITDA Focus: The Company continuesto pursue operating efficiencies across its licensing, legal, andcompliance frameworks. With the exceptional audit-related costs nowbehind it, Nevis expects EBITDA performance to improve in the secondhalf of the year.
“With strong brand momentum, disciplined costcontrol, and new products gaining market share, Nevis is entering thesecond half of fiscal 2025 from a position of strength,” addedKueber. “We’re excited about the early returns from ourhemp-derived THC initiative and remain focused on scaling revenueswhile progressing toward sustained profitability.”
About Nevis Brands
Nevis innovates and develops cannabis products thathave been consumed by millions of consumers across the United States.Led by our flagship brand Major™ and Happy Apple(™) Nevis licensesand produces cannabis beverages using a variety of production anddistribution partners and is rapidly expanding its productsnationally.
Nevis Brands Inc. is publicly traded on the CSE underthe symbol “NEVI,” US OTC: “NEVIF” and Frankfurt StockExchange symbol under the symbol “8DZ”.
Forward-Looking Statements
This news release contains "forward-lookingstatements" or "forward-looking information" (together,"forward-looking statements") within the meaning ofapplicable securities laws. Wherever possible, words such as"may", "would", "could","should", "will", "anticipate","believe", "plan", "expect","intend", "estimate", "potential for","see" and similar expressions have been used to identifythese forward-looking statements. Forward-looking statements in thisnews release include, without limitation, the Company's outlook forand expected operating margins, capital allocation and other financialresults; statements relating to the business and future activities of,and developments related thereto, the Company after the date of thisnews release, including such things as future business strategy,competitive strengths, goals, expansion and growth of the Company'sbusiness, operations and plans; expectations regarding cultivation andmanufacturing capacity; expectations of market size and growth in theU.S. and the states in which the Company operates; expectations forother economic business or competitive factors related to the Company;the Company's business outlook.
These forward-looking statements reflect the currentexpectations of the Company's management for future growth, results ofoperations, performance and business prospects and opportunities andinvolve significant known and unknown risks, uncertainties andassumptions, including, without limitation, those listed in theCompany's filings with the Canadian securities regulatory authorities(which may be viewed at www.sedarplus.ca). Should one or more of theserisks or uncertainties materialize or shouldassumptions underlying the forward-looking statements prove incorrect,actual results, performance or achievements may vary materially fromthose expressed or implied by the forward-looking statements containedin this news release. These factors should be considered carefully,and prospective investors should not place undue reliance on theforward-looking statements. The Company disclaims any intention orobligation to revise forward-looking statements whether as a result ofnew information, future developments or otherwise, except as requiredby law.
The Canadian Securities Exchange has not reviewed,approved, or disapproved the content of this news release.
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