Auxly FY22 Net Revenue Grows 13%, What About Adjusted EBITDA?

Auxly Cannabis Group Inc. XLY CBWTF 2022 total net revenue was CA$94.4 million, an increase of CA$10.6 million or 13% compared to 2021.

FY 2022 Financial Highlights

• Gross profit of CA$16.5 million in 2022, a decrease of CA$2.8 million as compared to 2021, which includes the impacts of non-cash impairments and fair value adjustments.

• Gross profit margin for 2022 was 17% versus 23% in 2021.

• Net loss of CA$130.3 million compared to net loss of CA$33.7 million in 2021.

• Adjusted EBITDA was negative CA$16.9 million, an improvement of CA$4.8 million over the same period of 2021.

Q4 2022 Financial Highlights

• Adjusted EBITDA was negative CA$783,000, compared to negative CA$5.8 million in Q4 2021.

• Net revenues of CA$24.7 million, approximately CA$4.6 million lower than the same period in 2021, however CA$4.9 million or 20% greater than Q3 2022.

Hugo Alves, CEO of Auxly, stated: "The Canadian cannabis industry faced numerous challenges in 2022 and Auxly was not immune to their impacts. To better position the company within current industry realities, we adapted our strategy in the third quarter by streamlining our focus to the three largest Canadian product categories of dried flower, pre-rolls, and vapes, leveraging our large-scale Leamington facility to deepen our competitive advantage and refining our cost structure.”

“Our efforts have yielded positive results, including our first significant wholesales of bulk dried flower from Auxly Leamington, improved net revenues and blended margins, and reductions in SG&A during the fourth quarter. We also internalized our sales team to improve relationships with retailers, strengthen distribution, and obtain new dried flower and pre-roll listings to increase category breadth and set the stage for further growth in 2023. We are encouraged by our recent achievements and remain dedicated to delivering further improvements in financial performance. I want to thank our talented team members for their continued commitment to Auxly's success."

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