Nova Cannabis Q3 Revenue Improves 30% QoQ, Continues On Track Of 200 Stores In 2023

Nova Cannabis Inc. NOVC NVACF reported its unaudited condensed interim consolidated financial statements Wednesday for the three and nine months ended Sept. 30.

Darren Karasiuk, Nova CEO said the company has been "aggressively expanding" its footprint over the past period, "adding stores at an average pace of one per week and now have 71 stores opened across Alberta and Ontario." 

"The rate of our sales growth shows that our Value Buds format is resonating with consumers and capturing market share, and our operating performance in the third quarter demonstrates the Company's progress toward its scaled financial model," Karasiuk added.

Q3 2021 Financial Highlights

• Sales totaled $38.7 million, representing a 141.9% increase from the same quarter of last year and a 30.2% increase sequentially.
• Gross profit of $6.5 million, or 16.9% of sales, a 21.8% increase year-over-year and a 26.0% increase from the prior period.
• Generated positive operating profit and cash flow across the portfolio of operating stores before pre-opening and other non-operating lease expenses and head office expenses.

Q3 2021 Operating Highlights

• Opened eleven new Value Buds stores, including six Ontario-based retail locations and five shops in Alberta - roughly one per week since the release of the company's second-quarter earnings report.
• The company, based in Edmonton, Alberta, currently operates 71 stores and a pipeline of organic opportunities under development or active negotiation, the majority of which are in Ontario.

Nova Cannabis also said that it continues on track toward its objective of 200 stores in 2023.

In addition, all but three Alberta stores with the Nova banner remain and the company expects them to be converted to Value Buds by the year-end.

Moreover, the company revealed that Value Buds stores are generating $3 million in annual run-rate sales on average across the portfolio.

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