Drive-Thru Cannabis Sales Help C21: Same-Store Sales Up, But Revenue Down In Q3

C21 Investments Inc. CXXI CXXIF announced on Thursday its unaudited interim financial results for the third quarter ended Oct. 31, revealing a year-over-year and sequential decrease of 4.5% and 3.9%, respectively, in revenue to $6.9 million.

However, the Vancouver-based vertically integrated company reported a sequential increase in same-store sales.

"We experienced a second consecutive quarter of increased same-store sales, reflecting our strong brand and loyal customer base," Sonny Newman, the company's CEO and president, said. "We are also pleased with the success of our drive-thru initiative that commenced during the quarter, which has added new efficiencies to our operations.”

Q3 2023 Financial Highlights

• Gross profit totaled $2.7 million, down from $3.9 million in the prior year's quarter.
• Gross margin was 40%, representing an increase of 50 basis points sequentially.
• Selling, general and administrative expenses amounted to $2.5 million, the same as in the third quarter of 2022.
• Net loss was $376,150, compared to the net income of $248,507 in the corresponding period of last year.
• The company generated $0.9 million of adjusted EBITDA, unchanged from the prior quarter.
• Cash flow from operations was $2.7 million year-to-date.
• Total liabilities reduced $2.1 million year-to-date.
• Cash at the end of Q3 was $1.9 million, flat since the start of the year.

CXXIF Price Action

C21 Investments' shares traded 2.1739% higher at $0.235 per share after the market close on Wednesday afternoon.

Related News

• Vancouver Cannabis Producer Reports 17th Consecutive Quarter Of Positive Cash Flow Amid Industry Headwinds
• C21 Investments Revenue Grows 9.4% Sequentially, What About Adjusted EBITDA?
• C21 Investments FY23 Net Income Drops 97%, What About Adjusted EBITDA?

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