Entourage Health Corp

Good morning, everyone, and welcome to Entourage Health Corps' second quarter 2024 earnings results conference call. Currently, all participants are in a listen-only mode. After the presentation, there will be an opportunity to ask questions. As a reminder, this conference call is being recorded. A replay of this call will be available on the Entourage Health website later today and will remain posted for 30 days. I would now like to turn the conference over to Katherine Flaman, Senior Director and Corporate Affairs with Entourage Health for introductions. Please go ahead, Katherine.

Thank you. Good morning, everyone. Welcome to Entourage Health's second quarter 2024 results conference call. Please note this call is being recorded. For copies of our press releases and supporting documents, files, or retreat recording of this call, please visit the investor relations page of our website at entouragehealthcorp.com. A replay will be available available later this afternoon. With us on today's call, we have George Scorsese, Chief Executive Officer and Executive Chair of Ontario Shell, Bonnie Maharaj, our Chief Financial Officer. They will review the business highlights and financial results for the second quarter, as well as discuss reasons about them. Following formal remarks, we will open the floor for questions. I would like to remind everyone that during today's call, we will discuss our business outlook, which will contain forward-looking statements, actual events or results, Could different materials from those expressed or implied by such forward-looking statements due to several risks and uncertainties, including those mentioned in our most recent filings this year? These comments are based on predictions and expectations of today. Now, at this time, it is my pleasure to introduce George Horses, Andras Health CEO and Executive Chair. George, please go ahead.

Good morning, everyone. Thank you for joining us today. It's a pleasure to be here with you once again. As we all know, the only cons in the cannabis industry is change. Regulations, market sentiment, technology, and business practices continue to evolve each year. This quarter has been notably challenging, but it has provided us with valuable insights and demonstrated the resilience of both our business model and the cannabis industry as a whole. I want to share a high-level market update for mid-year. The initial months of this year have been marked by a number of offsets. strongest competitors remaining. Despite these hurdles, Entourage remains a strong contender in the Canadian cannabis industry. As we move into the second half of the year, our resilience continues in a market filled with complexities and challenges. Our year-to-date performance and targets are on track, reflecting our ability to adapt and thrive. Now, I'd like to briefly highlight some of our financial achievements. In just a moment, Tony will walk us through the financials and outline our next steps to achieve these goals. We experienced a decline in net revenue over the last quarter, primarily due to softened demand in key markets such as Alberta, BC, and Quebec, and broader economic challenges in Canada. However, our performance over the first six months of the year remained consistent with the same period last year. While I'm pleased with how the business has I believe we are only at the beginning of what Entourage can achieve. We have strategically implemented numerous initiatives to make our organization more fiscally disciplined internally while becoming more consumer and patient-centric externally. Having streamlined our internal operations, we are now positioned to refine our product strategy and capitalize on both operational efficiencies and market opportunities. Let me delve more deeply into this in the next few seconds. Strategic focus, distribution, and growth in the cannabis market is the first area I'd like to discuss. Our strategic focus has increasingly shifted towards enhancing distribution and driving sustainable growth. As I alluded to earlier, change is constant and market dynamics continuously shifting in regulatory, consumer preferences, and economic Secondly, expanding distribution channels. Our strategy begins with the expansion of our distribution channels across Canada, recognizing that accessibility is key to market penetration. This involves not only increasing the number of retail outlets that carry our products, but also ensuring that our products are widely available across all major provinces. In Q2, our Dime Bag brand achieved over 90% distribution in Ontario. a milestone that highlights our commitment to saturating key markets. By focusing on high-visibility locations and partnering with leading retailers, we are ensuring that our products are readily accessible to a larger segment of consumers. In BC, four new SKUs launched, including the expansion of color cannabis live resin pre-rolls and two new color cannabis tent packs available in over 50% of BC's retail outlets. New launches in BC are available in nearly two-thirds of retail stores, demonstrating the effectiveness of our distribution efforts. Targeting product launches is also key. Our distribution strategy is closely tied to our product portfolio to meet the diverse needs of cannabis consumers. This is evident in our recent product launches across Alberta, Ontario, and BC, where we introduced a mix of innovative products such as We're positioning ourselves as a go-to brand for novice and experienced cannabis users. Moreover, our ability to rapidly scale the distribution of these products across multiple top revenue generating provinces ensures that we can quickly capitalize on emerging trends and consumer demand. In addition to these launches, our medical portfolio Starseed launched two new cultivars representing our top selling products with over 20% of the revenue of medical being attributed to these cultivars. These additions have diversified our product portfolio and our ability to meet the varied preferences of our patient base. Our strategic partnerships. Another key element is our growth strategy is forming our strategic partnerships with third-party suppliers and retailers. By collaborating with suppliers who share a commitment to quality, we can ensure a consistent supply of premium products deviating from these standards. Additionally, data-driven market insights, understanding consumer behaviors at the heart of our distribution strategy. We are leveraging advanced data analytics to gain deeper insights into consumer preferences, purchasing patterns, and market trends. This data-driven approach allows us to make informed decisions about product development, distribution, and marketing strategies. This insight has guided our decision to focus on adult use revenue looking at this we are also producing over 2 million free rules per month and lastly sustainable growth and profitability this has always been our commitment we are not just focused on short-term gains our goal is to build a robust business model that can withstand market fluctuations and deliver long-term value to our shareholders by expanding our distribution channels launching targeted products sustainable growth in a highly competitive cannabis market. Before I hand it over to Vani for more detailed financial overview, I'd like to briefly recap where we stand. Entourage's growth journey remains steady, the strategic blueprint for 2024 and beyond, and focuses on margin application, revenue growth, and product innovation. As we move forward, we'll continue to refine and adapt our strategy to ensure we remain at the in an environment of constant change, we continue to navigate the challenges and opportunities in the cannabis market.