Zinger Key Points
- C21's Q2 revenue grows 14% QoQ to $7.5M, driven by strong performance at the South Reno dispensary.
- Gross margin rises to 43.5% in Q2, reflecting operational improvements and increased retail sales.
- C21 narrows net loss to $845K, while free cash flow turns positive at $0.8M in Q2.
Vertically integrated cannabis company C21 Investments Inc. CXXI CXXIF announced its interim unaudited financial statements and management discussion and analysis on Thursday for its second quarter ending Sept. 30, 2024.
"We are pleased with the strong performance and positive customer reception of our new dispensary during its first quarter of operations," said Sonny Newman, CEO and president. "These results have exceeded our expectations and we continue to see robust sales growth into the new quarter.”
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Q2 Financial Highlights
The company said there is no equivalent time period to the second quarter report in the company’s historical results due to the previously reported change in fiscal year end from Jan. 31 to March 31.
- Revenue totaled $7.5 million, representing a 14% increase from the first quarter.
- Gross margin rose to 43.5%, up from 31% in the prior quarter, fueled by operational efficiencies and higher retail revenues.
- The South Reno dispensary ramped up sales by 53% within the quarter, reaching $416,000 in Sept. and continued to perform well post-quarter. The dispensary sales increased by 14% in Oct. reaching $475,000.
- Adjusted EBITDA came in positive at $1.3 million, up from $0.3 million in the previous period, reflecting better margins and retail growth.
- Free cash flow turned positive, reaching $0.8 million, compared to a negative $0.09 million in the first quarter.
- Net loss decreased to $845,132.
- Selling, general and administrative expenses increased by 3% increase due to the new dispensary's lease and labor costs.
- Total assets grew to $58.6 million, while liabilities increased to $28.3 million. The South Reno dispensary sales increased by 14% in October, reaching $475,000.
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