Fire & Flower Reports 6th Consecutive Quarter Of Positive EBITDA, 37% YoY Revenue Increase In Q3

Fire & Flower Holdings Corp. FAF FFLWD announced its financial and operational results on Tuesday for the fiscal third quarter ended October 30, 2021.

The Toronto-based company reported a 37% year-over-year improvement in revenue and sixth consecutive quarter of positive adjusted EBITDA.

Trevor Fencott, the company's CEO said that apart from its "continued strong financial performance," Fire & Flower's progress in the third quarter was demonstrated by its "many growth opportunities that we successfully advanced in order to solidify our high-margin, asset-light cannabis retail business model."

Over the period, the company wrapped up the acquisitions of online cannabis platforms PotGuide and Wikileaf, "setting the stage for the role out of our expanded e-commerce digital platform strategy," Fencott explained.

The company also bolstered the Circle K co-location program to expand its retail footprint. It currently operates 102 stores nationwide.

The recently secured $30 million in financing through a loan agreement with 2707031 Ontario Inc., an indirectly wholly-owned subsidiary of Alimentation Couche-Tard Inc., is intended to help further the development of the company's consumer digital platform.

In addition, last week, Fire & Flower announced that it's purchasing Pineapple Express Delivery, Canada's largest delivery and logistics company serving the cannabis sector, for $5.3 million.

Q3 2021 Financial Highlights

• Total revenue amounted to CA$45.4 million ($35.8 million) compared to revenue of CA$33.1 million for the third quarter of 2020.
• Retail revenue increased by 27% year-over-year to CA$33.7 million.
• Wholesale revenue increased by 54.8% year-over-year to CA$7.9 million.
• Digital platform revenue increased 159.7% year-over-year to CA$3.8 million.
• Total gross profit amounted to CA$15.7 million, or 34.6% of revenue, compared to total gross profit of CA$11.5 million, or 34.7% of revenues in the third quarter of 2020.
• Adjusted EBITDA was CA$2.1 million compared to positive adjusted EBITDA of CA$2 million for the third quarter of 2020.
• The total principal amount of debt outstanding on October 30, 2021, was CA$2.4 million.
• Cash and cash equivalents balances of CA$16.5 million.
• Net loss totaled roughly CA$2 million, down from CA$25.7 in the prior year's period.

"With these accomplishments, we are rapidly transforming into a cannabis consumer technology platform which allows us to deliver a seamless customer experience from online customer acquisition through to fulfillment via same-day delivery to customers at our 100+ stores across North America," concluded Fencott.

FFLWD Price Action

Fire & Flower's shares traded 0.42% lower at $4.76 per share at the market close on Monday.

Photo: Courtesy of Markus Winkler on Unsplash