Multi-Banner Cannabis Retailer's Q3 Revenue Slumps Over 42% YoY But CEO Remains Optimistic

Shiny Health & Wellness Corp. SNYB announced its third quarter fiscal year 2024 financial results for the three months ended Oct. 31, 2023, revealing a year-over-year drop in quarterly sales to CA$4.3 million ($3.2 million) from CA$7.46 million.

The Toronto-based company said the drop in revenue was consistent with trends observed in the Ontario cannabis retail market over the period.

Revenues were also reduced as a result of deliberate moves by management to close certain non-performing adult-use cannabis dispensaries and sell some of the larger footprint stores, Shiny Health said in a press release.

The company recently signed an asset purchase agreement with Karan S. Holla for his Stash & Co. Ontario chain of 10 adult-use cannabis retail stores.

“The Company is systematically building a strong brand presence in Ontario," CEO Meris Kott said. "We are excited to complete the Stash & Co. acquisition and add 10 more stores and another well-recognized brand."

Q3 2024 Financial Highlights

• Gross profit totaled CA$1.46 million, down from CA$2.81 million in the third quarter of last year.
• Total expenses amounted to CA$2.21 million, down from CA$3.7 million in the prior year's period.
• Net loss for the period was roughly CA$6 million, up from CA$1.75 million in the corresponding quarter of last year.
• As of Oct. 31. The company had CA$11.2 million in total assets and CA$16.3 million in total liabilities, down from CA$22.6 million and CA$19.6 million, respectively, as of Jan. 31. 2023.
• Cash at the end of the period was CA$239,817, compared to CA$1.13 million on Oct. 31, 2022.

What's Next

CEO Kott said he will push to bring Shiny Health to the "next stage of development."

"We are focused on becoming a dark horse in the consolidation of the Canadian cannabis sector," she added.

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