Lifeist Q2 FY23 Net Revenue Grows 51% YoY, What About Adjusted EBITDA?

Lifeist Wellness Inc. LFSWF LFST M released its financial results for the three months ended May 31, 2023, revealing net revenue of CA$6.2 million ($4.7 million), an increase of 51% compared to CA$4.1 million in Q2 2022. The improvement was mainly driven by a year-over-year increase of CA$1.2 million in Aus Vapes hardware revenue, due to a two-months shut-down in 2022. CannMart cannabis revenue and Mikra nutraceutical revenue also contributing to the growth with year-over-year revenue growth of CA$580,000 and CA$255,000 respectively.

Q2 2023 Financial Highlights

• Gross profit of CA$1.8 million compared to gross loss of CA$485,067 in Q2 2022.

• Net loss of CA$2.2 million compared to net loss of CA$3.9 million in Q2 2022.

• Adjusted EBITDA loss improved to CA$2.4 million in Q2 2023 compared to CA$4.5 million in Q2 2022.

• Cash and cash equivalents were CA$2.2 million at May 31, 2023, compared to CA$3.8 million at November 30, 2022.

• The working capital position was CA$4.2 million at May 31, 2023.

"Our ongoing journey to transform Lifeist into a diversified wellness company with high-margin business units remains on track," stated Meni Morim, CEO of Lifeist. "In our second quarter results, we experienced growth across all our key metrics, including achieving another historic high gross profit. Though the path has been challenging, we are making continuous improvements and efficiencies are having an impact as we move toward our goal of profitability and positive cash flow."

"The growth in second quarter 2023 revenue was led by our Aus Vapes business which experienced a significant rebound in revenue having introduced new product categories, a new marketing strategy, and successfully relocated warehouse operations into a larger and more modern facility improving efficiencies after devastating spring floods. In addition, both of our main wellness businesses CannMart and Mikra continue to deliver solid results. CannMart has successfully established itself a leading cannabis brand within a short span of two years. Through innovation, strategic partnerships with provincial buyers, and unwavering support from our retailers, we are driving distribution and enhanced sell-through of our expanding portfolio of premium and mid-range concentrate products."

Corporate Update

The company reported that Slava Klems, CFO at Lifeist, is transitioning to a fractional CFO position.

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