TORONTO, Nov. 28, 2024 /CNW/ - Advantex Marketing International Inc. (CSE: ADX) ("Advantex" or the "Company") today announced its financial results for the first quarter ended September 30, 2024. All results are reported under International Financial Reporting Standards ("IFRS") and in Canadian dollars, unless otherwise specified.
Key Financial Highlights:
- Total revenue for Q1 2025 was $1.02 million, an increase of 36.8% compared to $0.75 million in Q1 2024. This growth was driven by a significant uptake in the Aeroplan program.
- Gross profit for Q1 2025 was $0.85 million, an increase of 43.9% compared to $0.59 million in Q1 2024. This reflects higher revenue generation and better cost management.
- The Company achieved an EBITDA (income from operations before depreciation, amortization, and interest) of $0.41 million, an improvement of 130.2% compared to $0.18 million in Q1 2024.
- Net loss for Q1 2025 narrowed to $0.35 million, compared to $0.55 million in Q1 2024. This reflects improved operational performance despite higher interest expenses.
Merchant Cash Advance (MCA) Program:
- Revenue increased 7% to $0.56 million in Q1 2025, compared to $0.53 million in Q1 2024.
- The program benefitted from increased deployment of transaction credits, which grew by $0.47 million during the quarter, underscoring the Company's focus on supporting small businesses in a challenging economic environment.
Aeroplan Program:
- Revenue surged 107.1% to $0.46 million in Q1 2025, compared to $0.22 million in Q1 2024.
- This growth was fueled by strong adoption of the MCA Aeroplan product, which integrates the cash advance offering with loyalty rewards to drive merchant engagement.
Strategic Progress and Challenges:
- Gross Margin Improvements: The Company continues to refine its operations, maintaining stable margins in the Aeroplan program and addressing delinquent accounts in the MCA program in a timely manner.
- Economic Environment: Inflationary pressures and high-interest rates remain challenges for the Company. However, recent reductions in Bank of Canada rates signal a cautiously optimistic outlook for the remainder of fiscal 2025.
- Capital Management: Advantex successfully secured agreements to defer interest payments on its 9% 2025 debentures and renewed its credit facility, ensuring continued support for MCA program growth.
Outlook:
Advantex remains focused on leveraging its strategic partnerships and innovative offerings, such as the MCA Aeroplan product, to drive growth. The Company believes that easing economic conditions and a commitment to transparent and competitive pricing will enable further expansion of its MCA portfolio and strengthen its market position.
About Advantex:
Advantex is a leading provider of merchant cash advance services to small independent merchants across Canada. The Company also operates a partnership with Aeroplan, offering businesses the opportunity to provide Aeroplan points to their customers. Advantex is listed on the Canadian Securities Exchange under the symbol ADX.
Forward-Looking Information:
This news release contains certain "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, the Company's future financial performance, business strategy, future financing, and its ability to meet obligations and achieve operational goals. The forward-looking information is based on current expectations and assumptions made by management in light of its experience and perception of historical trends, current conditions, and expected future developments. Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated or implied by such forward-looking information. These risks include, but are not limited to, general economic conditions, interest rates, inflation, the ability to raise additional financing, and risks related to the Company's business and operations.
The Company undertakes no obligation to update forward-looking information, except as required by law. Readers are encouraged to consult the Company's public filings for a full discussion of risks and uncertainties related to forward-looking information.
SOURCE Advantex Marketing International Inc.
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