Quarterly Earnings: Fire & Flower, Charlotte's Web, Radient

Here's a summary of the latest earnings updates in the cannabis industry:

Fire & Flower's Revenue Spikes 158% YOY

Fire & Flower Holdings Corp. FAF FFLWF reported Tuesday a 158% revenue increase to $28.6 million in the second quarter of fiscal 2020.

Moreover, it posted a negative adjusted EBITDA of $300,000 versus a $4.8 million loss in the same quarter last year.

Chief executive Trevor Fencott said the company continues to "drive towards delivering positive adjusted EBITDA," adding that they have made "meaningful progress towards this critical goal during the quarter." 

Fire & Flower posted that its total expenses amounted to $12.5 million. Loss from operations was $2.56 million.

Over the quarter, the Edmonton, Alberta-based company managed to repay debt worth $28.2 million.

Meanwhile, some of the recent moves Fire & Flower opted for include the $750,000 purchase of an Ontario-based cannabis store from Meta Growth Corp., and a partnership with WeedMD Inc. WMD WDDMF.

As a part of the deal with the cannabis manufacturer and distributor, Fire & Flower product offering would be sold under the Revity brand.

Charlotte's Web Revenue 'Below Expectations'

Boulder, Colorado-based Charlotte's Web Holdings Inc. CWEB CWBHF revealed Monday that its revenue declined by 13% sequentially to $21.6 million for the second quarter of this fiscal year.

In addition, adjusted EBITDA was a loss of $5.7 million, compared to the positive adjusted EBITDA of $3.8 million in 2019.

The company posted an adjusted gross profit of $14 million (excluding inventory provisions).

Its Direct-to-Consumer eCommerce sales rose by 33.6% over the year and accounted for 71.8% of the second-quarter revenue.

On June 30, the company had $99.8 million in cash and $155.0 million in working capital.

Deanie Elsner, the company's CEO, explained that the second-quarter revenue was "below expectations" due to the current health crisis and its impact on retail sales.

Meanwhile, Charlotte's Web also received  B Corp certification, as well as closed the acquisition of Abacus Health Products Inc. ABAHFABCS in June under the deal valued at CA$99 million ($68.2 million).

Elsner told Benzinga that they "expect the Abacus business to provide meaningful opportunities in adjacent markets — pain relief and skincare, a $10-billion market opportunity."

Radient Posts Fiscal 2020 Revenues of $18.4M

Radient Technologies Inc. RTI RDDTF posted Monday its financial results for the fourth quarter and 2020 fiscal year.

The Edmonton, Alberta-based company saw substantial year-over-year revenue growth from $214,060 in fiscal 2019 to $18.4 million in this fiscal year.

For the year, Raident has a gross profit of approximately $448 million.

The company reported impairment losses of $5.8 million on inventory and $4.5 million on plant and equipment.

Radient also posted a net loss of $37.4 million compared to a net loss of $27.9 million in the prior year.

"Despite the many headwinds for the cannabis industry, Radient's fiscal 2020 included several major milestones that have laid the foundations for future growth and profitability," commented Denis Taschuk, the company's CEO. 

Over the year, Radient inked several supply and white label deals, including agreements with Premium 5, Fluum, and Medical Cannabis by Shoppers.

Courtesy image: Fire & Flower