Auxly Cannabis Sees 2021 Revenue Growth Of 79%, Still EBITDA Negative

Auxly Cannabis (TSX: XLY) was amongst the numerous names that reported their fourth quarter and full year financials this morning. The company saw fourth quarter revenues improve 20.9% on a quarter over quarter basis, while full year revenues improved by 79%.

Revenues for the fourth quarter amounted to $29.3 million, an improvement over the third quarters $24.5 million figure. Cost of sales meanwhile amounted to $23.4 million, while inventory impairments came in at $2.2 million, resulting in a gross profit before fair value adjustments of $3.8 million.

Expenses meanwhile amounted to $22.9 million for the quarter, indicating that the company has a significant way to go to right size its operations. Selling, general and administrative expenses amounted to $12.9 million, while depreciation and amortization amounted to $5.7 million.

In total, the company posted a net loss of $18.4 million for the quarter, while adjusted EBITDA came in at negative $6.0 million.

For the full fiscal year, revenues amounted to $83.8 million, a 79% improvement over the $46.7 million reported in 2020. Cost of sales hit $62.8 million, and was hamstrung by an additional $3.3 million in inventory impairments, resulting in gross profits of $17.8 million before fair value adjustments.

Total expenses for the year were approaching parity with net revenues, coming at in at $75.9 million. Of those expenses, SG&A amounted to $45.7 million, while depreciation and amortization came in at $12.5 million. Most concerningly, interest expenses amounted to $17.7 million – just shy of eclipsing gross profit before fair value items, a major structural issue for the company.

With other income of $6.4 million, which largely came from gain on settlement of assets and liabilities, the company posted an overall net loss of $50.2 million. Adjusted EBITDA meanwhile was negative $21.7 million.

Cash and cash equivalents as of December 31, 2021, was reported as being $14.8 million, with total current assets sitting at $118.5 million. Comparatively, accounts payable and accrued liabilities is currently pegged at $30.6 million, with total current liabilities of $52.9 million.

In terms of 2022, the company has indicated its “key priority” is to hit adjusted EBITDA profitability via topline revenue growth and gross margin expansion.

Notably, subsequent to quarter end the firm shuttered its Robinsons facilities in Nova Scotia.

Auxly Cannabis last traded at $0.165 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Auxly Cannabis Secures Assets of Curative Cannabis

Auxly Cannabis (TSXV: XLY) has officially completed the foreclosure process on the share collateral of...

Friday, November 29, 2019, 09:44:59 AM

Auxly Signs Manufacturing And Distribution Deal With Dosist

Auxly Cannabis (TSXV: XLY) this morning announced that its PEI-based subsidiary Dosecann has entered into...

Wednesday, June 24, 2020, 08:44:35 AM

Auxly Reduces International Operations, Cuts Domestic Cultivation Plans

It appears Uruguay may not have the perceived demand for hemp that many expected. Auxly...

Monday, June 29, 2020, 08:17:44 AM

Auxly Cannabis Sees Imperial Brands Convert $123 Million In Debt To Equity Interest

Auxly Cannabis (TSX: XLY) has substantially bolstered its balance sheet, indicating this morning that Imperial...

Monday, April 1, 2024, 08:37:41 AM

Auxly Cannabis Closes $84 Million Secured Credit Facility for Sunens Farms

As Auxly Cannabis (TSXV: XLY) forecloses on one client for a secured debt being in...

Tuesday, September 24, 2019, 09:43:58 AM