Fire & Flower Q1 2022 Revenue Dips Slightly, Here Are The Details

Fire & Flower Holdings Corp. FFLWF FAF released its financial and operational results for the fiscal 2022 first quarter ended April 30, 2022, revealing revenue of $40.9 million for Q1 fiscal 2022, representing a decrease of 7% from $44.1 million in the prior year comparative period.

Financial & Operational Highlights for the First Quarter Fiscal 2022

• Gross profit of $12.2 million for Q1 fiscal 2022, representing a decrease of 26% from $16.5 million in the prior year comparative period.

• Adjusted EBITDA of negative $2.3 million for Q1 fiscal 2022.

• Net loss of $9.9 million for Q1 fiscal 2022, compared to a net loss of $61.6 million in the prior year comparative period.

• Cash and cash equivalents balance of $28.4 million as of April 30, 2022, an increase of $8.6 million from the fiscal year ended January 29, 2022.

• Free cash flow for the thirteen weeks ended April 30, 2022 was negative $8.7M, an improvement from negative $11.6M in the previous fiscal quarter ended January 29, 2022 as a result of lower SG&A expense and reduction in capital expenditures.

• On April 28, 2022, 2707031 Ontario Inc. exercised 8.3 million series B common share purchase warrants for an aggregate exercise price of $37.8 million. Pursuant to the terms of a secured loan agreement dated December 13, 2021 between the company and 2707031 Ontario Inc., a portion of the aggregate warrant exercise amount of $37.8 million was used to repay the principal of $20.0 million and interest of $0.5 million to 2707031 Ontario Inc. as prescribed by the secured loan agreement. There are no further amounts owing under the secured loan agreement..

Subsequent Operational Highlights Post April 30, 2022

• Appointed Stéphane Trudel as CEO on June 1, 2022. Prior to joining Fire & Flower, Trudel held the position of senior vice president of operations for Alimentation Couche-Tard Inc. ANCTF, and member of its executive leadership team.

• Launched Firebird Delivery, including a rush delivery service, in Ontario.

• Entered into an exclusive agreement with Zonetail Inc. ZTLLF ZONE to offer cannabis delivery to residential high rise buildings and hotels.

• Pineapple Express Delivery expanded its medical delivery base through an agreement to offer same-day delivery to Entourage Health Corp. patients ETRGF ETNG

"Fire & Flower has delivered impressive growth in the early stages of our business and now we are moving forward to focus on the next phase of our evolution. As we evolve, our goal is to deliver positive adjusted EBITDA and free cash flow. These goals will be achieved through a focus on operational excellence in all our business segments, continual growth in our Hifyre cannabis consumer technology platform, and expansion of our Pineapple Express Delivery service, now integrated in our Wholesale and Logistics segment. Deep retail expertise and our close partnership with Alimentation Couche-Tard, combined with our industry leading cannabis consumer technology platform and competitive pricing strategy, are key drivers of value for the company," stated Stéphane Trudel, CEO of Fire & Flower.

Photo by Diyahna Lewis on Unsplash

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