Cannabis Professional’s daily roundup of industry news. View archive here.
A fistful of earnings this morning, with retailers High Tide and Fire & Flower reporting gains in revenue, and licensed producer 48North reporting its first full year. And, craft grower SugarBud added two new members to its board of directors.
– Rob Gilroy
Q3 revenue up for High Tide vs Q2 as more stores open, but net loss also rose
The owner of cannabis retail chain Canna Cabana reported higher net revenue along with an increased net loss in the three-month reporting period ended July 31, versus the prior quarter, as the company opened more recreational pot stores and supply availability improved.
Calgary, Alberta-based High Tide Inc., which owns Canna Cabana, Smoker’s Corner, and Grasscity, reported net revenue at $8.3-million in its third quarter, up from $6.6-million in the second quarter of 2019.
It marked a net loss of $3.8-million in the third quarter, up from $3.3-million the prior quarter.
For the first nine months of its fiscal year 2019, its gross margin rose to $7.2-million at 36 per cent, versus $3.6-million at 55 per cent in the same period of 2018, prior to the legalization of recreational cannabis when the bulk of the company’s sales were accessories.
Revenue for the first nine months of 2019 reached $19.9-million with a net loss of $10.9-million, the company reported.
During the third quarter, High Tide opened its 15th Canna Cabana retail store.
– Marcy Nicholson
48North reports first year of revenue, net loss shrinks year-over-year
Licensed producer 48North Cannabis Corp. reported 2019 net revenue at $4.8-million for its fiscal year ended June 30, with a net comprehensive loss at $8.1-million.
This was its first year of revenue. Its net loss in 2018 was $12.4-million.
The Ontario-based producer, which planted one of Canada’s first legal outdoor crops last spring in an effort to capture a lower cost-of-production compared with indoor operations, said it is preparing to sell additional cannabis products starting in calendar 2020. The value of its inventory nearly doubled to $4.7-million in the quarter ended June 30 versus $2.5-million the prior three-month period, 48North said.
“Currently, at Good:Farm, 48North is harvesting approximately 200,000 cannabis plants, with some of the harvest being earmarked for the provincial distributors as dried flower, and the remainder being processed for extraction destined for next-generation cannabis products, 48North expects to start showing significant revenues from its outdoor cultivation in upcoming quarters," said 48North chief executive Alison Gordon.
- Marcy Nicholson
Fire & Flower reports second quarter earnings
Edmonton-based Fire & Flower Corp. said today it generated revenue of $11.1-million for the 13 weeks ended Aug. 3, 2019, including cannabis and cannabis-related accessory sales of $9.7-million, wholesale sales of $0.9-million and digital development revenue of $0.5-million. This compared to revenue of $9.5-million, including cannabis and cannabis-related accessory sales of $7.7-million, wholesale sales of $1.3-million and digital development revenue of $0.5-million during the 13 weeks ended May 4, 2019. Total gross profit for the 13 weeks ended Aug. 3, 2019 was $4-million or 36.5 per cent of revenue with retail and wholesale operations delivering $3.6-million, or 33.6 per cent, gross profit, compared to $3.7-million with retail and wholesale operations delivering $3.2-million, or 35.6 per cent of gross profit for the 13 weeks ended May 4, 2019. The Company recorded a net comprehensive loss of $6.5-million, or a net loss per share of $0.06 for the 13 weeks ended August 3, 2019.
- Staff
SugarBud appoints two directors
SugarBud Craft Growers Corp. announced today the appointment of Janice Comeau (CPA CA, ICD.D) and Mr. Stephen Martin (J.D., LL.M, MBA) to the board of directors of the company, effective today. Ms. Comeau has over 30 years of strategic corporate and financial management experience spanning a variety of industries, including serving as CFO at a number of public and private companies. Mr. Martin is a lawyer with more than 20 years of government, corporate and private practice experience handling proactive and reactive compliance-related matters, the Calgary-based company said.
- Staff