Revenue across the US cannabis sector continues to be flat at best within first quarter results published by operators. Ayr Wellness (CSE: AYR.A) was the latest such firm to post its first quarter results this morning, posting revenues that were flat relative to the fourth quarter of 2021.
Revenue for the quarter came in at $111.2 million for Ayr, versus $111.8 million in the fourth quarter. Cost of goods sold meanwhile came in at $65.7 million, leading to a gross profit of $45.5 million, a decline from the $51.2 million recorded in the prior quarter.
“It has been well-telegraphed by our peers that Q1 was a challenging period for the industry. However, we have maintained or even increased retail market share across most of our footprint despite this challenging backdrop, while also increasing wholesale revenue,” said CEO Jonathan Sandelman on the results.
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Operating expenses meanwhile climbed slightly, going from $65.1 million to $66.6 million on a sequential basis. Expenses were lead by General and Administrative at $49.7 million, followed by amortization on intangibles of $12.8 million and sales and marketing expenses of $1.8 million. Collectively, the expenses resulted in the company posting a loss from operations of $21.2 million, versus a loss from operations of $13.9 million in the fourth quarter.
The quarter itself was bolstered however by other income of $23.2 million, primarily attributable to a fair value gain on financial liabilities. After taxes of $11.3 million, the company posted a net loss of $9.2 million, or $0.11 per share. The company meanwhile posted an adjusted EBITDA of $18.4 million.
Cash of the period end meanwhile sat at $78.7 million, versus $154.3 million as of the start of the quarter. Total current assets overall sits at $209.8 million, versus total current liabilities of $96.7 million.
In terms of outlook, the firm still expects to post a run rate of $250 million of adjusted EBITDA, $100 million in operating income, and $800 million of revenue in the fourth quarter of 2022.
Ayr Wellness last traded at $8.13 on the CSE.
Information for this briefing was found via Sedar and Ayr Wellness. 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.
