Gaby Reports Positive Net Income For Q1 2022, Here Are The Details

GABY Inc. GABLF GABY released its financial and operating results for the Q1 2022, revealing revenue of CA$7.3 million, an increase of 115% YoY.

Q1 2022 Financial Highlights

• Gross profit margin of 44% improved from 7% of the respective period last year,

• Adjusted EBITDA of CA$500,000 is up from negative CA$800,000 of the respective period last year,

• Net income of CA$1.5 million is up from negative CA$2.5 million from the same quarter last year

Other Highlights

• In 2021 GABY cut costs by $3.0 million which have started to materialize in 2022.

• In April 2022, Gaby launched a new high end flower brand, Dank SpaceTM, which has become the number one selling flower brand in the Mankind dispensary within the first month of launch.

• As part of GABY's rationalization strategy, the operations of Sonoma Pac was shut down in Q3 of 2021 and in Q1-2022 the Company settled SPD's indebtedness to the CDTFA and dissolved SPD eliminating the remaining outstanding payables of CA$3 million, strengthening its balance sheet and accounts for a part of the improvement in the net loss over Q1 2021.

Management anticipates it will be able to sustain revenue, despite consumption normalizing to pre-COVID levels, and continue to generate synergies going forward as its experienced retail management team continues to implement operating efficiencies and well-established retail strategies. Management is particularly focused in 2022 on margin and SG&A improvements at the licensed manufacturing and distribution business and the enhancement of its delivery business.

Margot Micallef, founder and CEO of GABY stated "I'm impressed with the ability of our experienced retail operating team to continue to generate cost savings and realize synergies in this challenging market. Our dispensary, Mankind, is better merchandised and our sales team is better trained in retail sales techniques and product knowledge than ever before. These improvements coupled with our data analytics give GABY an advantage in attracting new customers and retaining them. I'm convinced that we have the most hands-on experience in retail of any of our competitors and that bodes well for our future," she concluded.

Photo: Courtesy of Shelby Ireland on Unsplash

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