Fire & Flower Holdings Corp. (TSX: FAF) reported this morning its financial results for the fiscal second quarter 2021 ending July 31, 2021. The firm posted $43.3 million in revenue for the quarter, up from Q1 2021’s revenue of $44.1 million and Q2 2020’s revenue of $28.6 million.
“As our financial results demonstrate, our Hifyre business segment is growing at a rate significantly greater than past quarters and is now driving new opportunities for total revenue growth and stronger EBITDA,” said Fire & Flower CEO Trevor Fencott.
Breaking down the quarterly revenue, retail contributed $31.8 million while wholesale notched $7.8 million in sales. Last year, the two divisions pulled in $23.4 million and $4.3 million, respectively. However, the company’s digital platform revenue saw the highest year-on-year increase, contributing $3.7 million compared to last year’s $0.9 million.
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Net income for the quarter came in at $19.5 million, a significant climb from the $61.6 million loss last quarter and $29.1 million loss for the same period last year. The quarterly income translates to $0.06 per share.
Calibrating for financial items, the company’s adjusted EBITDA ended at $3.1 million, up from the previous quarter’s $2.3 million and the previous year’s $1.1 million. This is mainly driven by the adjustment made from the quarterly net income of about $25.3 million in gains on a derivative liability revaluation.
The firm also ended the quarter with a cash and short-term investment balance of $29.3 million while total liabilities ended at $3.8 million.
“We continue to successfully execute an e-commerce model unlike any of our competitors as we drive our leadership position in the global cannabis retail industry,” the company’s chief officer added.
In August, the Canadian cannabis firm officially made its entry into the US market with its first branded retail store in California. Currently, its application to be listed on the Nasdaq is ongoing, targeting its debut on the big board by Q4 2021.
Fire & Flower Holdings last traded at $0.92 on the TSX.
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