The Company achieved a total revenue of $13.6 million.Gross Profit Margins continue to demonstrate a solid performance with 30% growth year-over-year.SG&A achieves a significant reduction, reflecting the Company's notable 32% decrease year-over-year.EBITDA improves by 70% for the quarter and 65% year-over-year, reflecting progress toward profitability.Management will host a conference call on November 29, 2024, at 10 a.m. Eastern Time.

TORONTO, Nov. 29, 2024 (GLOBE NEWSWIRE) -- Entourage Health Corp. (TSX-V:ENTG) (OTCQX:ETRGF) (FSE:4WE) ("Entourage” or the "Company”), a Canadian producer and distributor of award-winning cannabis products, announced today its financial results for the three and nine months ended September 30, 2024. The Company will host a conference call to discuss its financial and business highlights on November 29, 2024, at 10 a.m. Eastern Time.

"Over the past year, we've focused on creating products that truly meet the needs of our customers and patients," said George Scorsis, CEO and Chair of Entourage. "With the holidays approaching, we are excited to introduce several highly anticipated products, demonstrating our commitment to delivering meaningful and timely offerings. As the cannabis industry stabilizes, our team's creativity and operational focus on optimizing the business will position us as a market leader. We look forward to the year ahead with a strong product pipeline planned for 2025.”

Summary of Results

For the Quarter-Ended September 30,

2024September 30,

2023  ($000's)($000's)Total revenue 13,61112,251Net revenue (less Excise Tax) 9,5458,750Gross margin % before changes in fair value 30%27%Loss and comprehensive loss (8,372)(9,905)EBITDA** (1,027)(3,400)    As at  September 30,

2024December 31,

2023  ($000's)($000's)Cash and cash equivalents 3,61911,254Inventory & Biological assets 10,95110,010Working Capital (171,378)(146,909)

**Net revenue and **EBITDA are not recognized measurements under International Financial Reporting Standards (IFRS), and this data may not be comparable to data presented by other companies. Management defines net revenue as revenue (i.e., gross revenue less discounts and customer incentives but inclusive of freight) less excise taxes. Management defines EBITDA as earnings adjusted to exclude interest, tax, depreciation, stock compensation, fair value changes and other non-cash items, and non-recurring items. This data is furnished to provide additional information and does not have any standardized meaning prescribed by IFRS. The Company uses these non-IFRS measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors, and other interested parties frequently use non-IFRS measures in evaluating companies, many of which present similar metrics when reporting their results. As other companies may calculate Net Revenue and EBITDA differently than the Company, these metrics may not be comparable to similarly titled measures reported by other companies. We caution readers that EBITDA should not be substituted for determining net loss as an indicator of operating results or as a substitute for cash flows from operating and investing activities. See the Company management's discussion and analysis for the three and nine months ended September 30, 2024 (the "Q3 2024 MD&A”), for a detailed reconciliation of adjusted EBITDA to net income/(loss). The Company's financial statements for the three and nine months ended September 30, 2024, and the Q3 2024 MD&A are available on SEDAR+ at www.sedarplus.ca.

Sales and Revenue Highlights

Revenue Highlights   

  Q3 2024 Q3 2023YoY%

  ($000's)($000's)%Net Revenue by Channel    Medical 2,9563,161(7)Adult use 5,5255,589(1)Bulk 1,064--N/ATotal Net Revenue 9,5458,7509

"Our increase in net revenue for Q3 reflects the success of our strategic shift into different markets, allowing us to diversify and tap into new opportunities,” said Vaani Maharaj, Chief Financial Officer of Entourage. "While the adult-use and medical segments faced shifts in market dynamics, initiatives like the launch of our Dime Bag value brand are helping us address evolving consumer needs and expand into new segments. These efforts demonstrate our adaptability and commitment to growth in a competitive industry.”

Third Quarter 2024 Financial Highlights

For the three months ended September 30, 2024, Entourage recorded total revenue of $13.6 million compared to $12.3 million for the same quarter that ended September 30, 2023, representing an 11% increase year-over-year.The Company reported a gross profit before changes in fair value of $2.9 million for the three months ended September 30, 2024, compared to $2.4 million for the same period in 2023. This growth was driven by increased operational efficiencies from advancements in pre-roll automation, product mix optimization, and packaging improvements.In Q3 2024, gross margins rose to 30%, an incremental improvement from the 27% recorded in Q3 2023. This enhancement is primarily due to increased automation in producing finished and semi-finished goods, which lowered direct labour costs and improved margins compared to last year.For the three months ended September 30, 2024, the cost of goods sold ("COGS") increased by 5% to $6.7 million compared to the same period in 2023, primarily due to a significant decrease in provision allowances and write-downs in the prior year. For the nine months ended September 30, 2024, COGS decreased by 5% to $22.1 million compared to the prior year, reflecting improved cost management over the year-to-date period.Selling, general, and administrative ("SG&A”) expenses in the three months ended September 30, 2024, decreased by $2.0 million or 32% compared to the same period in 2023, primarily attributed to the realization of savings from discontinued and restructuring activities consummated during 2023.For the three and nine months ended September 30, 2024, EBITDA increased by 70% to $(1.0) million and 65% to $(3.7) million compared to the same periods in 2023. These improvements were primarily driven by a reduction in SG&A expenses and COGS during the nine months. Corporate Highlights During and Subsequent to Third Quarter 2024

Business Milestones

The Company announced in August that it was in breach of certain financial covenants and other obligations under each of its Senior Credit Agreement and Subordinated Credit agreements with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada ("LPF”). The Company is working collaboratively with LPF to agree on amended debt terms. As a positive step forward, the Company received renewed forbearance letters dated August 2, 2024, October 8, 2024, October 31, 2024, and November 28, 2024, respectively, waiving the Company's breaches until October 8, 2024, October 31, 2024, November 28, 2024, and January 15, 2025, subject to the satisfaction or waiver of certain conditions.

The Company announced in October that it had signed an amendment (the "Amendment") to its senior secured amended and restated credit facility entered into on January 31, 2023 (the "Credit Facility") with an affiliate of LPF. The Amendment provides an increase to the Credit Facility by an addition of approximately $2,500,000 (which funds were advanced to the Company in a single draw). No further changes were made in respect of the Credit Facility.

Commercial & Operational Highlights

Entourage significantly enhanced its pre-roll manufacturing capabilities, producing over 2 million pre-rolls per month.Entourage implemented strategic initiatives to drive efficiency, reduce costs, and strengthen operations. These include optimizing resource allocation, streamlining processes through advanced systems, and improving planning and coordination across critical functions.The Company has expanded its adult-use portfolio with 23 new SKUs across Color Cannabis, Dime Bag, and Saturday in key markets, including Ontario, British Columbia, and Alberta.Color Cannabis continued its legacy of unique cultivars with the introduction of 'Luminous Lime,' 'Jazzberry,' and 'Almond Cloud'. These new offerings build on the brand legacy of crafting strains that resonate with consumers, blending flavour profiles with premium genetics. Saturday Cannabis has introduced new infused pre-roll offerings with the 'Raspberry Iced 1g Blunt,' strengthening the brand's reputation for innovation in the infused cannabis segment. Dime Bag stood out with the launch of its 'Pocket Rocket' infused pre-rolls in Ontario, featuring five SKUs with unique flavours like 'Wildcat Serum' and 'Hazelnut Spread'. Additionally, Dime Bag drove distribution gains with 2,000 new retail placements and led the Entourage portfolio in adult-use growth, delivering $2.5 million in incremental revenue year-over-year in Q3 2024. Entourage will expand its portfolio in early 2025 with new cultivars and formats, including 'Chromatica' (10 x 0.35g and 7g), 'Sour Grapefruit Haze Live Resin' infused pre-rolls (3 x 0.5g), a 20-pack Mega Pack (20 x 0.5g pre-rolls), and two new Pocket Puff flavours: 'Citrus Burst' and 'Minty Melon.'

As the year ends, the Company is focused on finishing strong and preparing for the new year. The dedication of the team and the continued demand for our products have positioned Entourage to remain a leader in the cannabis industry. Entourage is optimistic about the opportunities ahead and is committed to delivering value and growth as the Company positions itself for 2025.

Conference Call Details:

A conference call will be hosted by Mr. Scorsis and Ms. Maharaj, with management available for questions following opening remarks as follows:

Date:Friday, November 29, 2024Time:10 a.m. Eastern TimeDial-in Number:

Canada/USA: 1-844-763-8274. International Toll: 1-412-717-9224

Participants, please dial in and ask to join the Entourage callReplay:Available after 12:00 pm Eastern Time, until December 28th, 2024 on the Entourage website www.entouragehealthcorp.com.   About Entourage Health Corp. 

Entourage Health Corp. is the publicly traded parent company of Entourage Brands Corp., a licence holder producing and distributing cannabis products for the medical and adult-use markets. The Company owns and operates a fully licensed 26,000 sq. ft. Aylmer, ON processing facility. With its Starseed Medicinal medical-centric brand, Entourage has expanded its multi-channelled distribution strategy. Starseed's industry-first, exclusive partnership with LiUNA, the largest construction union in Canada, along with employers and union groups, complements Entourage's direct sales to medical patients. Entourage's elite adult-use product portfolio includes Color Cannabis, Saturday Cannabis - and now Dime Bag and Syndicate - sold across eight provincial distribution agencies. Entourage is the exclusive Canadian producer and distributor of award-winning U.S.-based wellness brand Mary's Medicinals, sold in both medical and adult-use channels.

Follow Entourage and its brands on LinkedIn 

Instagram: Color Cannabis, Saturday Cannabis, Starseed, Syndicate, Dime Bag

For additional information or investor or media inquiries:

Catherine Flaman

Senior Director, Communications & Corporate Affairs

416-910-0279

catherine.flaman@entouragecorp.com

Forward Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation which are based upon Entourage's current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified using forward-looking terminology such as "expect," "likely," "may," "will," "should," "intend," "anticipate," "potential," "proposed," "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may," "would" or "will" happen, or by discussions of strategy.

The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions, and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of fact. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with the Company's ability to pay amounts owing under the Credit Facility and its other debt agreements; the Company being unable to satisfy the conditions in the forbearance letter; the future actions and co-operation of the Company's lenders; general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of Entourage to implement its business strategies; competition; crop failure; and other risks.

Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, Entourage does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Entourage to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in Entourage's disclosure documents filed with the applicable Canadian securities' regulatory authorities on SEDAR+ at www.sedarplus.ca The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE