GABY Q2 Revenue Drops 26% YoY, Here Is What You Need To Know

GABY Inc. GABLF GABY Q2 2022 revenue was $5.2 million, which after adjustment for the closure of GABY's wholesale distribution business, is down 26% from $7.1 million in Q2 2021.

Q2 2022 Financial & Operational Highlights

• Gross profit for Q2 2022 was $2.2 million which is down from $3.2 million in Q2 2021.

• Gross margin is up 8% to 43% from 35% in Q2 2021.

• Adjusted EBITDA was $0 down from $700,000 in Q2 2021.

• The net loss of $3.0 million for Q2 2022 included a $1.1 million foreign exchange loss on translation of the $25.5 million promissory note issued as consideration for the acquisition of the Mankind Dispensary on April 1, 2021, and was $1.7 million down from the same quarter last year.

Margot Micallef, founder and CEO of GABY commented, "The artificially high prices and demand brought on by the pandemic have made for a challenging market as pricing and demand stabilizes to pre-COVID levels. This market will benefit the good operators. The experience our team has in running retail operations gives us an advantage over other operators with less experience and I am confident the strategies we have implemented and the operating efficiencies we have generated will result in increased revenue in the back half of the year."

Paul Stacey, SVP, and CFO of GABY, stated "We remain relentlessly focused on managing costs, inventory turns, and cashflow. Now that prices and demand are stabilizing, our focus for the rest of the year is to continue to work with our supplier partners to ensure we can bring the best products to market at the best prices while continuing to keep our retail store margins stable."

Photo: Benzinga; Sources: courtesy of Kindel Media via Pexels

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