Gage Growth Corp. (CSE: GAGE) last night announced its financial results for Q1 2021, which saw US$17.6 million in revenue. This is an increase from Q4 2020’s revenue of US$10.5 million and Q1 2020’s revenue of US$5.5 million.
Gross margins for the quarter came in at 26.1%, a climb from the previous quarter’s 17.3%, but a decline from the year-ago figure of 29.1%. The company said the improvement in gross margin can be attributed to a greater mix of higher-margin sales from retail locations and cultivation capacity expansion.
Gage Growth posted a net loss of US$10.8 million for the quarter, compared to last quarter’s net loss of US$14.5 million and last year’s net loss of US$3.1 million. The quarter’s net loss translates to a US$0.08 loss per share. Adjusted EBITDA meanwhile came in at negative US$3.8 million.
The company ended the quarter with US$43.6 million in cash and cash equivalents, down from last quarter’s US$45.5 million.
Gage Growth also reiterated the previously announced revenue guidance for Q2 2021 of US$26 million to US$31 million. The company also anticipates a further material increase in the next quarter’s gross margin as a result of its efforts in improving its cultivation facilities and input costs.
Gage Growth Corp. last traded at $2.70 on the CSE.
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