Fire & Flower Holdings Corp. (TSX: FAF) released today its financial results for the fiscal Q1 ended April 30, 2022. The report highlighted a quarterly revenue of $40.9 million, an increase from $42.7 million last quarter but a decline from $44.1 million in revenue for the same comparable period last year.
The cannabis firm said the year-on-year decrease is attributed to “increasing competition from new licences issued and pricing pressures in the cannabis retail market.”
The company’s shares slid down 5% when the market opened following the earnings release.
Breaking down the topline revenue figure, retail sales contributed $29.6 million, wholesale revenue contributed $8.5 million, while the remaining $2.9 million came from the firm’s digital platform sales.
The gross margin for the quarter further slid down to 29.7% from 32.1% last quarter and 37.5% in the previous year. The company still ended with a net loss of $9.9 million compared to its net loss last quarter of $19.5 million and last year of $61.6 million. The quarterly loss translates to $0.27 per share.
Adjusted EBITDA for the quarter ended at negative $2.3 million, coming from negative $2.4 million last quarter and a gain of $2.3 million last year.
At quarter’s end, the company has a cash and cash equivalents balance of $28.4 million coming from a beginning balance of $19.8 million. Most of the inflow came from proceeds from warrants exercise amounting to $17.3 million.
Current assets came in at $61.0 million while current liabilities ended at $29.8 million.
Fire & Flower Holdings last traded at $3.02 on the TSX, then fell 4.97% when the market opened.
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.