Mercanto Holdings Inc. Reports Q2 2025 Results
MONTREAL, March 27, 2025 /CNW/ - Mercanto Holdings Inc. (TSXV:MUSH) ("Mercanto" or the "Company"), formerly The Good Shroom Co Inc., a Canadian cannabis and wellness product company, today reported its financial results for the second quarter ended January 31, 2025 ("Q2 2025").
Q2 2025 Financial Overview (Compared to Q2 2024):- Revenue: $1.00 million (vs. $1.13 million)- Net revenue (after excise taxes): $0.84 million (vs. $0.93 million)- EBITDA: ($96,038)- Long-term debt: $0 (Mercanto remains debt-free)- Net loss: ($109,215) (vs. net profit of $56,017)- Working capital: $417,814 (vs. $563,617 as at July 31, 2024)
CEO Eric Ronsse commented:
"While our Q2 results reflect ongoing industry challenges and temporary softness in our core Quebec market, we remain confident in our long-term strategy. Our financial discipline is a constant, reflected in our lean structure and efficient operations. Mercanto continues to operate with focus and the cash flow stability required to carry forward without interruption."
Industry Context: Challenges and Strategic Response
In the context of rising global trade tensions, including the current trade dispute with the United States, many industries are facing significant uncertainty and risk related to cross-border tariffs. The Canadian cannabis industry, however, remains largely insulated from these pressures due to its strictly domestic supply chains. Additionally, in periods of economic slowdown, cannabis—like alcohol—tends to be a resilient category, as consumers often continue these discretionary purchases despite broader market challenges.
Mercanto's core market, Quebec, which has historically represented over 93% of revenue, is undergoing a product rationalization process initiated by the province's cannabis board. This has temporarily impacted sales volumes and contributed to the decline seen in Q2.
"Despite recent stagnation in Quebec, it's a market that has historically been very strong for us, and we remain optimistic about renewed growth once the rationalization process concludes, a process that is expected to persist through Q4 and into early Q1. While several high-performing SKUs were removed entirely as part of this process, leading to a measurable hit to revenue in past quarters, ...
