Cannabis Health-Tech Reports YoY Drop In Q3 Revenue As It Moves To Diversify Wellness Business

Lifeist Wellness Inc. LFST (FRANKFURT: M5B) LFSWF reported its third quarter financial results Friday for the three months ended August 31, revealing a $30% year-over-year drop in net revenue to CA$4.8 million ($3.45 million).

"Our steadfast commitment to transforming Lifeist into a diversified wellness company with high-margin business units remains on track," Meni Morim, CEO of Lifeist said. "We have shifted our primary focus to gross profit enhancement, rather than simply revenue growth, and together with cost efficiency measures in Q3 2023, such actions yielded promising results."

Q3 2023 Financial Highlights

• The strategic focus on high-margin activities and operational efficiency continues to pay off, with gross margins improving to 30% compared to 20% in the same quarter of 2022.
• Gross profit before inventory adjustment increased to CA$1.4 million.
• Operating costs and professional fees dropped 21.4% to CA$3.1 million compared to CA$3.8 million in the third quarter of last year.
• Net loss from continuing operations was CA$2.4 million, or (CA$0.005) per diluted share, compared to a loss of CA$1.9 million, or (CA$0.005) per share, in the prior year's period.
• Adjusted EBITDA loss increased from CA$2.1 million to CA$1.2 million in the third quarter of 2023.
• Cash and cash equivalents were CA$1.4 million at August 31, 2023, compared to CA$3.8 million at November 30, 2022.
• Inventories were CA$ 5.6 million on August 31, 2023, compared to CA$ 4.5 million on November 30, 2022.
• The working capital position was CA$3.7 million on August 31, 2023.
• Net cash used by operations was CA$1.5 million compared to CA$3.2 million in the same quarter of last year, partly due to lower revenue from CannMart and reductions in overall operating costs.

Lifeist Wellness' shares traded 0.9901% lower at $0.01 per share after the market close on Friday.

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