Kiaro Holdings Reports Record Quarterly Revenue Of CA$6.19M

Kiaro Holdings Corp. KO (OTC: KIARF) revealed Tuesday its second-quarter financial results with record revenue of CA$6.19 million ($4.88 million), versus CA$4.0 million in the same period of 2020. The 55% revenue improvement can be attributed to retail same-store sales increases of 21% 

and a 92% sales increase at Kiaro's wholesale subsidiary, National Cannabis Distribution Inc.

Q2 Financial Summary 

• A total of CA$6.19 million in revenue consisted of CA$3.72 million from the retail segment, CA$2.32 million from the wholesale segment, and CA$140,000 from the new eCommerce segment;
• Gross profit amounted to CA$1.68 million, up by 35% from the same period of last year;
• Total operating expenses for the period reached CA$2.46 million, which compares to CA$2.09 million in the corresponding quarter of 2020;
• Adjusted EBITDA was a loss of CA$100,000, versus a loss of CA$100,000 in the second quarter of the prior year;
• At the end of the reporting period, on July 31, Kiaro had a working capital of CA$2.29 million, compared to CA$1.61 million at the end of January 31; During the quarter, the company repaid its principal debt in the amount of CA$35,000.

"Our team continues to deliver fantastic financial results as proven by our record second quarter. Now that we have closed on the Acquisition of Hemisphere Cannabis and have 16 stores in operation we look forward to achieving our ~$43 million annual revenue target" Daniel Petrov, CEP of Kiaro stated.

Q2 Business Highlights and Recent Developments

• On March 16, 2021, Kiaro announced the completion of the Grasshopper Cannabis acquisition in Kelowna, British Columbia. The store is slated to open in Q3 of this fiscal year.
• On July 12, 2021, the company confirmed the completion of the acquisition of Sculthorp SEO Inc, which included one licensed and operational brick and mortar location in Toronto, Ontario, and three eCommerce business platforms in Canada, the US, and Australia. The two-week inclusion of the eCommerce assets contributed $141,011 in revenue and 16.2% net profit.
• On September 24, 2021, Kiaro completed its acquisition of Hemisphere from Aegis in an all-stock transaction, which creates a control person of approximately 25% of the combined entity. The total purchase price was $6.13 million in stock.

Photo: Courtesy of Elsa Olofsson on Unsplash