Cannabis Suisse Corp (CSUI) QQ4 2024 Financial Results Analysis – Healthcare: Drug Manufacturers (Specialty / Generic) – Severe Losses, Leverage Build, and Fragile Liquidity
Executive Summary
Cannabis Suisse Corp (CSUI) reported Q4 2024 results with a revenue base of $7.5 million but a substantial gross loss of $1.94 million, yielding an operating loss of $82.8 thousand and an overall net loss of $1.077 million. Reported EBITDA declined sharply to negative $1.062 million and the net income margin stood at -143.6% for the period. The quarterly metrics underscore a fragile profitability dynamic: minimal operating cash burn (-$0.406 million) was offset by large non-operating charges, resulting in a heavy bottom-line deterioration.
Balancing the income statement, the balance sheet signals a highly leveraged and structurally distressed financial position. Total liabilities (~$2.243 billion) dwarf total assets (~$0.819 billion), with stockholders’ equity deeply negative (~-$1.424 billion). Cash and cash equivalents appear inconsistent across line items (balance sheet shows negative cash, while cash-flow data indicate a positive year-end cash position of ~$28.6 thousand), pointing to data quality issues or reporting idiosyncrasies that require verification. The company carries a sizable long-term debt load (~$1.861 billion) and total debt (~$2.122 billion), with a debt-to-capitalization profile indicating heightened financial risk.
From a competitive standpoint, CSUI’s current profitability and liquidity profile trails typical healthcare/drug-manufacturer benchmarks. The four-quarter view shows revenue flat at roughly $7.5 million per quarter but persistent losses, suggesting structural challenges in gross margin, cost control, and scaling. Given the absence of disclosed forward-looking targets or management-guidance in the provided data, the investment thesis remains highly cautious, emphasizing liquidity risk, earnings sustainability, and the potential need for strategic repositioning or balance-sheet remediation.
Key Performance Indicators
Revenue
7.50K
QoQ: 0.00% | YoY:0.00%
Gross Profit
-1.94K
-25.89% margin
QoQ: -344.39% | YoY:-410.22%
Operating Income
-82.76K
QoQ: -31.65% | YoY:-31.20%
Net Income
-1.08M
QoQ: -1 484.58% | YoY:-1 502.45%
EPS
-0.02
QoQ: -1 420.00% | YoY:-1 420.00%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $7.50 million; YoY 0.0%, QoQ 0.0% (flat top-line across the four reported quarters in 2024).
Net Income: -$1.077 million; Net margin -143.61%. YoY: -1502.45%; QoQ: -1484.58%.
Earnings per Share (EPS): -$0.0228; Diluted EPS: -$0.0228. Weighted average shares outstanding: 47.316 million.
Financial Highlights
Key quarterly metrics and trend highlights (Q4 2024 vs prior periods):
- Revenue: $7.50 million; YoY 0.0%, QoQ 0.0% (flat top-line across the four reported quarters in 2024).
- Gross Profit: -$1.94 million; Gross margin -25.89% (negative). YoY change: -410.22%; QoQ: -344.39%.
- Operating Income: -$82.76 thousand; Margin -11.03%. YoY: -31.20%; QoQ: -31.65%.
- Net Income: -$1.077 million; Net margin -143.61%. YoY: -1502.45%; QoQ: -1484.58%.
- Earnings per Share (EPS): -$0.0228; Diluted EPS: -$0.0228. Weighted average shares outstanding: 47.316 million.
- EBITDA: -$1.0626 million; EBITDA margin -141.68%.
- Cash flow: Operating cash flow -$0.406 million; Free cash flow -$0.403 million; Capital expenditures: $3 thousand; Net change in cash +$28.518 thousand; Cash at end of period $28.562 thousand; Cash at beginning $0.044 thousand.
- Balance sheet snapshot: Total assets $0.819 billion; Total liabilities $2.243 billion; Total stockholders’ equity -$1.424 billion. Long-term debt $1.862 billion; Total debt $2.122 billion; Cash and cash equivalents reported as negative in the balance sheet (-$0.166 billion) versus a positive cash flow ending balance ($0.0286 billion) in the cash flow statement, indicating data inconsistencies.
- Liquidity/ratios (selected): Current ratio 0.44; Quick ratio 0.44; Gross margin -25.9%; Operating margin -11.0%; Net margin -143.6%; Return on equity (ROE) 0.76% (per ratio table, though equity is negative). Debt-to-capitalization ~304%; Price-to-sales ~88.3; Enterprise value multiple negative; cash-related ratios indicate severe balance-sheet stress.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
7.50K
0.00%
0.00%
Gross Profit
-1.94K
-410.22%
-344.39%
Operating Income
-82.76K
-31.20%
-31.65%
Net Income
-1.08M
-1 502.45%
-1 484.58%
EPS
-0.02
-1 420.00%
-1 420.00%
Key Financial Ratios
currentRatio
0.44
grossProfitMargin
-25.9%
operatingProfitMargin
-1103%
netProfitMargin
-14361%
returnOnAssets
-131.6%
returnOnEquity
75.6%
debtEquityRatio
-1.49
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0
priceToBookRatio
-0.47
priceEarningsRatio
-0.15
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript highlights: No earnings call transcript data were provided. As a result, management quotes, strategic guidance, or qualitative commentary from an QQ4 2024 earnings call are not available in the provided source. If/when a transcript is supplied, theHighlights section should group quotes by themes such as strategy, operations, and market conditions, linking each quote to its significance and potential investor implications.
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Forward Guidance
Forward guidance assessment: The dataset does not include explicit management targets or forward-looking guidance for CSUI’s near- to medium-term performance. Given the extreme leverage (long-term debt of approximately $1.86 billion and total debt of about $2.12 billion), along with negative equity and persistent losses, the path to sustained profitability would likely require material operational improvement, debt restructuring, asset monetization, or strategic pivot. Absent concrete guidance, investors should monitor: (1) any disclosed debt maturities and potential refinancing plans; (2) cash burn trajectory and liquidity runway; (3) potential impairment tests or asset sales; (4) regulatory developments affecting CBD-based or OTC product lines; and (5) any strategic initiatives around cost optimization or product mix realignment. In the absence of direction, probability-weighted scenarios should consider significant restructuring or capital-raising to restore financial flexibility.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
CSUI Focus
-25.89%
-11.03%
75.60%
-15.40%
GCAN
0.00%
0.00%
7.09%
-3.63%
GBHPF
0.00%
0.00%
39.80%
-10.60%
MGWFF
0.00%
0.00%
0.97%
-2.50%
MSMY
0.00%
0.00%
1.02%
-63.17%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Balanced-to-cautious investment outlook. The QQ4 2024 results depict entrenched losses, an extremely levered balance sheet, and questionable liquidity signals. Unless CSUI can demonstrate a credible plan to achieve meaningful gross-margin improvement, reduce leverage, and restore liquidity (e.g., through debt restructuring, asset monetization, or capital raises), the stock presents high downside risk for value-oriented or risk-averse investors. If a material strategic pivot or a credible liquidity plan emerges, the equity could be reevaluated; otherwise, the current data imply a low probability of near-term profitability expansion. Investors should closely monitor any new disclosures on debt maturities, impairment tests, and management commentary around restructuring or strategic initiatives.
Key Investment Factors
Growth Potential
Growth potential centers on CBD-derived wellness products and OTC lines in healthcare, plus potential optimization of the retail/distribution network. However, the current quarterly data show flat revenue with no clear top-line acceleration; sustainability of growth would require either market expansion, higher unit volumes, or price/mix improvements that are not evidenced in the latest results.
Profitability Risk
Material, multifaceted risk factors include: (a) liquidity risk given negative equity and high leverage; (b) earnings quality concerns due to negative gross and net margins; (c) regulatory and policy risk around cannabis-derived and CBD products; (d) potential impairment or write-downs on intangible assets and goodwill if business segments underperform; (e) data quality concerns in the reported balance sheet numbers which complicate liquidity and solvency assessments.
Financial Position
Financial position is characterized by heavy indebtedness (long-term debt ~$1.86B; total debt ~$2.12B) and negative stockholders’ equity (~$-1.42B). The balance sheet shows a fragile asset base relative to liabilities, with an inconsistent cash balance between the balance sheet and cash-flow statement. Absent timely remediation or capital-raising, the company may face ongoing liquidity pressure.
SWOT Analysis
Strengths
Niche exposure to CBD and wellness product lines within a healthcare/drug-manufacturer context.
Distribution channel through Swiss4Life and a network of retailers, providing a potential scalable route to consumers.
Product diversification includes OTC, CBD oils, supplements, masks and disinfectants, and tobacco products, offering multiple revenue streams.
Weaknesses
Profound profitability deterioration with negative gross margin (-25.9%) and negative net margin (-143.6%), signaling fundamental earnings issues.
Severe leverage and negative equity, with total liabilities well in excess of assets and an unclear liquidity position.
Operational cash flow is negative, indicating cash burn even as financing activity provided some net cash inflow; data inconsistencies cloud true liquidity.
Lack of disclosed management guidance or clear strategic roadmap in the provided data.
Opportunities
Potential near-term catalysts from product-line optimization (focusing on higher-margin OTC/CBD offerings).
Regulatory clarity and favorable CBD/wellness market development could unlock revenue potential if accompanied by cost discipline.
Debt restructuring or equity financing could improve liquidity and reduce solvency risk if feasible.
Threats
Regulatory and competitive pressures in the cannabis/CBD space, including potential restrictions on product lines and distribution.
Sustained negative profitability and margins could erode investor confidence and limit access to capital.
Capital structure risk if debt maturities approach and refinancing becomes difficult or expensive.